NextEd Group Shares Surge 43% Following Major Deal with IH Sydney Training Services

2 min read | December 11, 2024 01:17 PM AEDT | By Team Kalkine Media

NextEd Group Shares Surge 43% Following Major Deal with IH Sydney Training Services — Image source: Shutterstock

Strategic Deal with IH Sydney Training Services

NextEd’s recent agreement with IH Sydney Training Services grants the company exclusive rights to re-enrol students from IH campuses in four major Australian cities: Sydney, Melbourne, Adelaide, and the Gold Coast. This strategic partnership enables NextEd to access vital course materials, but it does not involve the acquisition of IH’s premises or staff.

The deal has the potential to add around 1,800 students to NextEd’s roster, with 950 English language students and 850 vocational students expected to transition. This represents significant growth in both categories, with English language enrollment set to rise by 30% and vocational student numbers by 25%.

Boosting Financial Prospects

The financial terms of the agreement are also promising, with a payment of $0.7 million due upon execution by December 20. Analysts expect this deal to contribute to NextEd’s earnings from the second half of fiscal year 2025, with additional revenue projections ranging between $6 million and $7 million.

CEO Mark Kehoe expressed his optimism about the deal’s impact, emphasizing that it will provide uninterrupted education to students previously committed to IH. Kehoe also highlighted NextEd’s adaptability in the market, further solidifying the company’s position as a leader in the Australian educational services industry.

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