Latin American Economy & Business - May 2018 (ISSN 1741-7430)

Kroton expands again: Kroton, Brazil’s largest private education company, said in April that it had acquired a controlling stake in Somos Educação, a group focused on the pre-school, primary, and secondary education segments. The takeover transaction totalled BRL6.2bn (US$1.79bn). Of this, the lion’s share will go to Tarpon, an asset manager that held a controlling stake in the target company, with payment also likely to go to GIC, Singapore’s sovereign wealth fund, which holds a minority stake. As a result of the transaction Kroton becomes the leading company in Brazilian education with net revenues of BRL7.5bn (US$2.17bn) and a market capitalisation of nearly BRL29bn (US$8.4bn). Analysts said Kroton was particularly interested in acquiring Somos Educação’s Pitágoras learning system.

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