IDP Education Ltd (ASX:IEL) has entered into a contract to acquire a digital marketing and online student recruitment company, Hotcourses Ltd.
The purchase price was £30.1 million, with an additional £4.9 million representing net cash in the business once the transaction completes on 31 January 2017.
IDP is a student recruitment company and co-owner of IELTS, an English language proficiency test which foreigners must pass in order to obtain certain visas and permanent residency in Australia. The company is 50% owned by Education Australia Ltd – a business in which 38 Australian universities own a 50.1% stake.
IDP Education posted a net profit of $39.9 million at 30 June 2016.