IDP Education Limited (ASX:IEL) has entered into a $6.4 million deal to grow its student placement business in China.
The firm inked an agreement to buy a 20 per cent holding, in a Chinese company that helps students prepare for English language tests, through social media and its mobile app.
The company will make an upfront $4.1 million payment in HCP Limited, and up to a further $2.3 million in 12 months, based on key performance targets.
IDP Education says its purchase will secure access to a growing digital community of international students in China who can share voice recordings and receive feedback.
HCP supports students preparing for the International English Language Testing Systems (IELTS) through WeChat, Weibo and a mobile app, Yasi Ge.
Shares in IDP Education Limited (ASX:IEL) last traded 0.22 per cent lower to $4.51.