DeVry to Buy Faculdade Ideal; Bolster Presence in Brazil - Analyst Blog

DeVry Education Group, Inc.'s (DV) share price rose around 2.48% on Dec 18, after the education company announced that its subsidiary, DeVry Brasil, has agreed to buy Faculdade Ideal (Faci) for an undisclosed amount. The acquisition is likely to be closed in the third quarter of fiscal 2015 and will strengthen DeVry‘s presence in Northern Brazil, where the company already offers courses to more than 36,000 students on 15 campuses.

Located in Belém, Pará, Faci primarily offers career oriented undergraduate programs in education, accounting, law, technology and engineering to about 2,500 students.

Post-acquisition, DeVry will invest in expanding the programs and improving the academic quality of Faci. The Brazilian institution will also benefit from DeVry's best practices, including infrastructure and technology upgrades.

DeVry Brazil operates through nine educational institutions in the northeastern regions of Brazil, which include Fanor in Fortaleza, Ceará; ÁREA1 and Ruy Barbosa, both in the city of Salvador, Bahia; Faculdade Boa Viagem (FBV) in Recife, Pernambuco; UniFavip in the city of Caruaru, Pernambuco; DeVry João Pessoa in Paraíba State, Facid located in Teresina, Piauí; and DeVry São Luis, in the city of São Luis, Maranhão. These institutions offer undergraduate and graduate courses in business, healthcare, law and engineering.

Earlier this week, DeVry announced that it has agreed to buy Damásio Educacional. Damásio is one of the largest providers of test preparation for the bar examination in Brazil and also offers undergraduate and graduate law programs. There is an increasing demand for career oriented courses due to improving prospects for skilled labor.  (DeVry Education (DV) to Buy Damasio Educacional in Brazil)

DeVry Brazil is a part of DeVry's International and Professional Education segment. The segment has been doing quite well for the past few quarters. In fact, DeVry international/professional institutions, coupled with the medical schools, have shown significant improvement in revenues and profitability in all the quarters of fiscal 2013 as well as 2014.

DeVry carries a Zacks Rank #3 (Hold).

Stocks in the education industry that are currently performing well include GP Strategies Corp. (GPX), Grand Canyon Education, Inc. (LOPE) and Strayer Education Inc. (STRA). All the three companies sport a Zacks Rank #1 (Strong Buy).

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