Nido Education (ASX:NDO) has acquired four childcare services for $12 million, marking its first acquisition since its IPO.
The newly acquired services are expected to contribute $2.6 million in EBIT for the 2025 calendar year.
The acquired services are located in Victoria and Western Australia and have shown strong trading performances since their openings between June and October 2023.
The acquisitions underscore Nido's efficient site selection and development capabilities. "Nido's unique growth model allows us to acquire only proven, profitable services that are purpose-built and de-risked through an earnout and claw-back mechanism," said Mathew Edwards, Managing Director of Nido Education.
With the acquisition, Nido now manages 56 owned services and an additional 46 services on behalf of third parties.
Nido continues to maintain a robust growth pipeline, with approximately 100 new opportunities offered each month.
The company remains focused on expanding its footprint through a strategic incubation model, ensuring the quality and profitability of its services from inception to acquisition.
Further growth is anticipated, with 12 services currently in the incubation phase.
Nido Education is an ASX-listed company that offers education and care for children, from six weeks, through to school age, in a safe, comfortable, nurturing and peaceful environment. The company also offers other experiences to promote wellbeing, such as creative arts in its ateliers, meditation, mindfulness, yoga and teaching self-regulation strategies.
At the time of reporting, Nido Education’s share price was $0.84.