EduCo Acquisition, Valuation, Funding & Investors

EduCo was acquired by Brookfield Asset Management for $1.8B in September 2023, a 8.2x multiple on $221M of revenue.

See full EduCo profile

EduCo acquisition price

$1.8B

Acquired by Brookfield Asset Management · Sep 2023

EduCo revenue at acquisition

$221M

Last twelve months · Sep 2023

EduCo revenue multiple at acquisition

8.2x

EV/Revenue · Sep 2023

Cumulative funding EduCo raised

$860M

across 1 funding round

EduCo Overview

About EduCo

EduCo AB is a Swedish holding company owning 585 social infrastructure properties for public education, including preschools, primary schools, upper-secondary schools, and universities across Sweden. The portfolio was formed by SBB (Samhallsbyggnadsbolaget) as an income-producing real estate platform serving municipal and regional education providers.


HQ

SwedenSweden, NY

Status

Acquired

Customer focus

B2G

Revenue model

Services

Revenue

$221M (Sep 2023)

Valuation

$9.4B (Nov 2022)

EduCo Acquisition

EduCo was acquired by Brookfield Asset Management for $1.8B on 24 September 2023.

The acquisition price implies a 8.2x revenue multiple on $221M of revenue.

Before the acquisition EduCo had raised $860M across 1 funding round.

EduCo AB, a Swedish holding company owning 585 social infrastructure properties for public education including kindergartens, primary schools, upper-secondary schools, and universities across Sweden, Norway, Finland, and Denmark, was established in 2022 when SBB contributed its portfolio valued at SEK 43.7 billion. Brookfield Asset Management, a Toronto-based global alternative asset manager with over USD 750 billion in assets under management across real estate, infrastructure, renewable energy, private equity, and credit, initially acquired 49% of EduCo for SEK 9.2 billion plus an earn-out of up to SEK 1.2 billion, becoming a minority shareholder while EduCo entered an asset management agreement with SBB for 1.8% of annual operating income; the portfolio generated expected revenue of SEK 2.3 billion in 2023. In 2023, Brookfield increased its stake by purchasing an additional 1.16% from SBB for SEK 242 million (approximately $29.28 million), achieving majority ownership of approximately 52% with SBB retaining about 48%. This transaction provided SBB with SEK 8 billion in cash through partial repayment of an inter-company loan, strengthening SBB's financial position while EduCo transitioned to a standalone company with representation from both parties on its board. The deal followed Brookfield's initial 2022 minority investment and was notified to competition authorities in Sweden, Finland, and Norway, with no appreciable competitive impact anticipated in the public education real estate market. The strategic partnership enhances long-term value creation in the education segment amid SBB's optimization efforts in social infrastructure, leveraging Brookfield's expertise in real estate and infrastructure investments.

EduCo acquisition details
AcquirerDateTypePriceEV/Revenue
24 Sep 2023PE buyout$1.8B8.2x

EduCo Valuation

EduCo is currently valued at $9.4B, based on its undisclosed-stage round in November 2022.

The $860M round was led by Brookfield Asset Management.

EduCo valuation by funding round

EduCo valuation by funding round
DateStageValuation
Nov 2022Undisclosed stage$9.4B

EduCo Funding History

EduCo has raised a total of $860M across 1 funding round.

EduCo funding rounds

EduCo funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Nov 2022Undisclosed stageBrookfield Asset Management (lead)$860M$9.4BEduCo is a social infrastructure portfolio for public education formed by SBB, comprising 585 income-producing assets (preschools, elementary schools, upper-secondary schools, universities) across the Nordics, with SEK 44.9bn book value as of Q3 2022. Brookfield Super-Core Infrastructure Partners acquired a 49% minority stake on November 30, 2022, paying SEK 9.2bn upfront cash plus up to SEK 1.2bn earn-outs, for a total transaction price of SEK 43.7bn implying full enterprise value of SEK 89.2bn. SBB retained 51% ownership and entered an asset management agreement with EduCo at 1.8% of NOI p.a., with target LTV 50-55% supported by SEK 6.9bn external debt and SEK 14.5bn inter-company financing.

Who has invested in EduCo?

1 investor has backed EduCo across its funding rounds, including Brookfield Asset Management.

Lead investors include Brookfield Asset Management.


EduCo Investors

Investors in EduCo by funding rounds participated
InvestorHQRoundsRoleFirst check

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EduCo Competitors

EduCo competitors include listed companies like Shoucheng Holdings, Carmila and FirstService, and private ones like Shanghai Taomao, SILA Group and Zeus Living.

Public and private companies comparable to EduCo
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Shoucheng HoldingsChinaChinaPublicly listed$183M$79M$1.4B5.8x
CarmilaFranceFrancePublicly listed$626M$327M$2.4B10.8x
Shanghai TaomaoChinaChinaPrivate--$1.3B-
FirstServiceCanadaCanadaPublicly listed$5.5B$525M$5.8B1.4x
SILA GroupIndiaMumbaiPrivate$190M-$250M1.3x
Zeus LivingUnited StatesSan Francisco, CAPrivate$100M-$205M-
Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Smartstop Self Storage$281M$129M10.6x12.0x23.2x19.0x
Intea Fastigheter$159M$140M20.6x18.1x23.4x22.2x
Tasmea$920M$99M2.1x1.7x19.4x16.5x
Poly Property Services$2.6B$354M0.1x0.1x0.8x0.8x
Grupo GPS$3.4B$436M0.7x0.7x5.3x6.4x
Grainger plc$348M$192M11.0x18.7x19.9x22.5x
Mitsui-Soko Holdings$1.9B$213M1.0x1.0x9.4x-
HIAG Immobilien Holding$173M$168M14.9x9.3x15.2x17.0x

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Common questions about EduCo

Where is EduCo headquartered?EduCo is headquartered in Sweden, NY, Sweden.
Is EduCo publicly listed?No, EduCo was acquired by Brookfield Asset Management in September 2023.
Who acquired EduCo?EduCo was acquired by Brookfield Asset Management in September 2023.
How much was EduCo acquired for?EduCo was acquired for $1.8B in September 2023, a 8.2x revenue multiple.
What is EduCo's valuation?EduCo was last valued at $9.4B in its undisclosed-stage round in November 2022.
How much funding has EduCo raised?EduCo has raised $860M across 1 funding round.
What was EduCo's last funding round?EduCo's last funding round was a $860M undisclosed-stage round in November 2022, led by Brookfield Asset Management.
Who are EduCo's investors?EduCo's investors include Brookfield Asset Management.
Which companies are comparable to EduCo?Companies comparable to EduCo include Shoucheng Holdings, Carmila, Shanghai Taomao, FirstService, SILA Group and Zeus Living.

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