Yduqs and Afya Complete Merger Creating Education Giant with 9.4 Billion BRL Revenue

The merger of Yduqs and Afya forms a major education company with combined annual revenue of 9.4 billion BRL and nearly one million undergraduate students. The new entity operates 176 campuses across 26 Brazilian states, including 51 dedicated to medicine. The combined organization offers 5,800 annual undergraduate seats. Financial projections indicate annualized net revenue of 9.4 billion BRL starting from the second quarter. Synergies from the transaction are expected to reach 2.2 billion BRL, with 80 percent captured within the first three years. According to Yduqs CEO Rossano Marques, the deal represents market consolidation with a perfect partner and will accelerate deleveraging while delivering shareholder returns. Initial market reaction showed modest movement, with Yduqs shares rising slightly over one percent while Afya shares declined nearly one percent during early trading.

The transaction values Afya at 1.2 billion USD (6.2 billion BRL) and Yduqs at 3 billion BRL, resulting in a combined market valuation exceeding 9 billion BRL. Analysts from Itaú BBA highlight the strategic complementarity of Afya's medical platform with Yduqs' broader higher education portfolio, creating a significantly larger and more diversified education platform. The deal is viewed as strategically important for the sector amid regulatory uncertainty in distance learning and increased competition in medical education. The merger will be listed on B3, with Afya delisting from Nasdaq. Bertelsmann, Afya's current controlling shareholder, will retain control with 47.3 percent ownership after the transaction. The Esteves family from Afya will hold 7.6 percent and the Zaher family from Yduqs 4.8 percent.

German executive Kay Krafft, currently CEO of Bertelsmann Education, will serve as president of the new company. Virgilio Gibbon, who leads Afya, will assume the role of group CEO. Yduqs CEO Rossano Marques will become president of the higher education unit, excluding medicine. Shareholders of Yduqs are expected to receive 750 million BRL in dividends during the transition period. The transaction reduces Yduqs' net debt to EBITDA leverage ratio from 1.6 to 1.2 times. The combined entity faces potential antitrust scrutiny in regions where it would control over 30 percent of medical school capacity, particularly in Ji-Paraná, Teresina, and Rio de Janeiro.

Reported by NeoFeed.