Tellusgruppen acquires a leading company in native language education
Published: September 7, 2022
IR - Regulatory
Tellusgruppen AB is acquiring all shares in Omniglot AB, a leading provider of native-language education. With Omniglot , a new business segment—educational services—will be established within Tellusgruppen. The new segment will have an immediate positive impact on the Group’s profitability and growth. The acquisition also creates new opportunities in EdTech.
Tellusgruppen Omniglot AB. The purchase price will be paid partly in cash and partly in the form of a promissory note, the amount of which will be reinvested by the seller through a set-off issuance of newly issued shares in in connection with the closing. The preliminary purchase price for the shares, including cash on hand, is SEK 35,427,320. The estimated enterprise value, excluding the additional purchase price, is SEK 29,819,468. The preliminary share price is SEK 6.75 Tellusgruppen [1], and the number of new shares will amount to 1,454,736 [2]. The cash contribution is financed partly externally and partly by ’s principal shareholder. The loan will be repaid over two years at an annual interest rate of 7.30 percent + STIBOR. The additional purchase price is calculated based on the target company’s performance during 2023–2024. Through reinvestment in shares, the seller will become the second-largest shareholder in . Tellusgruppen's Tellusgruppen's Tellusgruppen
“This deal opens up an entirely new segment for Tellusgruppen —language and education services,” says Bijan Fahimi, CEO of Tellusgruppen's . “This segment has great potential for growth in terms of digitalization. It will be an exciting entry point into the EdTech sector.”
The direct financial impact will be that Tellusgruppen will increase both its growth and profitability, as the acquired business has strong earnings potential. There are synergies that can be realized relatively quickly. Omniglot, with Tellusgruppen as its new owner, will be able to offer its services nationwide.
“With this new segment, Tellusgruppen's ’s operations become more diversified, which reduces political risk, among other things,” says Fahimi.
Omniglot had revenue of approximately 34 MSEK in 2021, with EBITDA of approximately 11 MSEK.
“We are pleased that Tellusgruppen is coming on board as the new owner,” says Mohsen Koubaa, who, together with his son, Adel Koubaa, is the founder of Omniglot. Through careful development work with our teachers and investments in our technology platform, we have ensured high-quality service delivery while maintaining strong profitability throughout. The combination of Omniglot and Tellusgruppen's ’s current operations will create a very powerful company that we look forward to helping develop as the second-largest owner.
[1] Depending on market conditions, the final price per share may range from SEK 6.00 to SEK 7.50 per share.
[2] Assuming that the final share price is SEK 6.75, the seller will, following the offering, hold 10.4 percent of Tellusgruppen's ’s shares. The total number of shares will increase from 12,532,100 to 13,986,836.
For more information
Bijan Fahimi, CEO of Tellusgruppen AB
bijan.fahimi@tellusgruppen.se
+46 707 167 453
Adel Koubaa, co-founder Omniglot
a.koubaa@se.oaklins.com
+46 707 913 816
MAR
This information is information that Tellusgruppen AB (publ) is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication on September 7, 2022, at 8:30 a.m. CEST.
Certified Adviser
The Company’s Certified Adviser is Mangold Fondkommission AB, which can be reached by phone at 08-503 015 50 and by email at ca@mangold.se.
About Tellusgruppen AB (publ)
Tellusgruppen is a long-term owner of well-managed companies in the education and child care sectors. The Group currently operates 27 preschools and seven elementary schools, and also provides babysitting and homework assistance.
Tellusgruppen was established in 2012 as the parent company of Tellusbarn (Tellusbarn was founded in 2007) and as a platform for future expansion in the education and child care sectors.
Tellusgruppen's Our business concept is to establish, operate, and develop profitable and growing subsidiaries that offer high-quality, innovative, and in-demand services in their respective fields.
About Omniglot
In 2015, Omniglot was one of the first private providers in the market to offer native-language instruction and academic support. With 200 dedicated teachers who are fluent in over 70 different languages, Omniglot currently serves approximately 60 clients, consisting of municipal and independent elementary and high schools in Sweden.