Intueri agrees to acquire Academy Group, adding pharmacy, floristry, building courses

Intueri Education Group, New Zealand's largest private training company, has agreed to buy Academy Group NZ for an initial payment of $4 million and the balance on completion of the target's 2015 accounts, adding courses for pharmacy technicians, florists, motor trades and building.

The acquisition price will amount to four times 2015 earnings before interest and tax and is expected to add $5 million to Intueri's annual revenue and $1.25 million to earnings, before synergy gains, the Auckland-based company said in a statement. Intueri will use existing debt facilities for the transaction.

Academy gets government funding through the Youth Guarantee scheme and Student Achievement Component, and specialises in "practical, employment focussed courses," including training for pharmacy technicians and floristry. It has about 450 students a year.

Intueri listed on the New Zealand stock exchange in May, and expanded its course offerings by buying a half-stake in Online Courses Australia Group and the New Zealand-based education provider Quantum Education Group. The shares last traded at $2.75, having floated in the initial public offering at $2.35 apiece.