Intueri Education Group, New Zealand's largest private training college, has agreed to buy the New Zealand Institute of Sport for $19.3 million to give it significant scale in the sports and complementary health sectors.
The purchase equates to 5.5 times expected 2016 earnings before interest, tax, depreciation and amortisation, Auckland-based Intueri said. The company will pay an initial $17.6 million, funded from debt facilities, with a potential interim payment in March 2016 and a final payment in March 2017, it said.
NZIS has almost 1000 students enrolling each year and includes the New Zealand College of Massage, one of only two providers to offer a Bachelor's Degree level massage therapy programme. The acquisition will boost the number of Intueri students to more than 13,000 and increase its colleges across Australasia to 11.
"Broadening the range and quality of our course provision forms the basis of our growth strategy," said Intueri chief executive Rob Facer. "The ability to offer sports-based programmes will offer significant opportunities to further increase our international student numbers."