Educational services company has raised $350 million in debt financing from Canada Pension Plan Investment Board (CPPIB) for Emeritus, to fuel mergers and acquisitions as part of a global growth strategy.
The edtech company has been in talks for strategic acquisitions and plans to spend as much as $1 billion for the same, Damera told ET in an exclusive interaction. The debt capital will be used for two key acquisitions in Europe and the US, as the company plans to grow its gross annual bookings by 90% to around $950 million in fiscal 2023, as against an estimated $500 million in this fiscal year ending March 31.
“With a year-on-year growth rate of 120 per cent, Emeritus estimates gross bookings of $500 million for the financial year. As the company continues to grow 2.5X organically, Emeritus will also accelerate growth through inorganic initiatives,” the company said.
“The pipeline of potential acquisitions is expected to contribute up to 30 per cent of Emeritus’ top line and in the next five years,” it added.
. Last year in May, Eruditus made a $200 million acquisition of Silicon Valley-based Idtech to enter the K-12 Stem space, or school education in the science and mathematics stream. In August, it closed a $650 million funding round, which included a secondary share sale, led by SoftBank Vision Fund II and Accel US. It was valued at $3.2 billion after this funding, making its way to the unicorn club, or startups having a valuation of at least a billion dollars.