In an attempt to bolster its presence in the fast growing region of Brazil, DeVry Inc. (DV - Free Report) recently announced its intention to buy a privately held Brazilian healthcare education company, Faculdade Differential Integral (Facid), for an undisclosed amount.
Facid, which operates through its two campuses in the city of Teresina, offers primarily healthcare degrees including a Doctor of Medicine (M.D.) program. It also offers undergraduate degrees in other healthcare fields such as nursing, pharmacy and dentistry, as well as a law program. Facid currently serves approximately 2,500 students. The transaction is expected to be closed in early July this year.
Healthcare has, of late, become a highly sought-after field of education. DeVry’s other medical institutions like Chamberlain College of Nursing and Carrington Colleges are currently doing well gaining from higher demand for medical doctors and veterinarians. Enrollment growth at these colleges is also improving due to higher quality enquiries and conversion rates, resulting from improved recruitment efforts and new branding initiatives by DeVry.
DeVry has made other acquisitions in Brazil in the past including Faculdade Boa Viagem (FBV) in Feb 2012 and Faculdade do Vale do Ipojuca in Sep 2012. Facid will be a part of DeVry Brasil which also includes FBV and Faculdade. DeVry Brasil, which operates through five institutions at nine campuses in northeast Brazil, is growing fast recording a top-line growth of 60% in the third quarter and 69% in the second quarter of fiscal 2013.
DeVry carries a Zacks Rank #3 (Hold). Other stocks in the education industry that are currently performing well and have a bright outlook include Xueda Education Group , Grand Canyon Education, Inc. (LOPE - Free Report) and New Oriental Education & Technology Group (EDU - Free Report) all carrying a Zacks Rank #2 (Buy).