CIBT to Acquire Leading Healthcare Education Provider
CIBT Education Group Inc. (TSXV: CPT, US OTC-BB: CBTGF) is pleased to announce that it has signed a non-binding Letter of Intent to acquire 75% control of the operating assets and certain liabilities of a leading healthcare education provider (“Target”) based in Canada.
The Target owns and operates several campuses in Canada, has a long established history and an excellent reputation in the healthcare education sector. Programs currently offered by the Target require practical nursing, resident care attendant, medical office assistant, as well as other health science related programs. Since 2005, the Target has achieved a compounded annual growth rate of 47.3% with reported revenues of $14.3 million in 2007 (un-audited) and projected revenues of $17.7 million for 2008 respectively. CIBT will pay $5.4 million for this transaction in a combination of cash and stock based on a total valuation of $7.2 million. The Parties are proceeding to legal and financial due diligence, a customary review process by their respective Board of Directors and approval by regulatory bodies having jurisdiction over this transaction. The purchase price is payable in cash and/or common shares of CIBT. Further details of the acquisition and the Target will be disclosed upon closing.
“As we continue with our Pan-Asia expansion strategies, we are excited about the opportunity to strengthen our vertical market focus in the healthcare education sector”, commented Toby Chu, Vice Chairman, President & CEO of CIBT Education Group. “Upon the completion of this acquisition, we believe that CIBT Education Group will become the largest private career college and the largest private health care educator in Canada. With a solid presence in Canada, our Pan-Asia expansion strategy will have the support it requires to introduce our group’s proven, established, and reputable programs across Asia.”
About CIBT Education Group Inc.:
CIBT Group is an education management and investment company with a special focus on the global education market. Its two subsidiaries, CIBT School of Business and Technology Corp. and Sprott-Shaw Community College, possess a combined operating history of over 118 years in China and Canada’s education sectors. CIBT owns and operates a network of 42 business and language colleges with a presence in Canada, China, Vietnam, Jordan and the Philippines. CIBT delivers North American and Chinese accredited business and management degree programs, automotive, and diesel maintenance programs, IT programs, and career/vocational programs through its network of campuses across China and Canada. In 2006, CIBT initiated plans to aggressively expand its business presence to over 50 CIBT teaching locations in China by 2010 and to establish schools in other parts of Asia including South Korea, Thailand, Malaysia and India.
CIBT Education Group Inc.
President & C.E.O.
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