IDP Education Limited (ASX:IEL) entered into a binding agreement to acquire Indian IELTS operations of British Council for £130 million on July 1, 2021. The consideration is paid on cash and debt free basis. IDP will fund the acquisition from existing cash and debt.

As a part of the transaction, existing British Council employees will join the IDP Education Limited team. The Transaction remains subject to customary completion conditions. The completion is expected to occur in August 2021.

The transaction is estimated to be approximately 13% EPS accretive (pre-synergies) on a pro forma CY19 basis. The proceeds of the sale will enable British Council to improve its financial position. Arthur Stewart, Shashwat Patel, Patrick Boylan and Adrian Smith of Simmons & Simmons and Aparajit Bhattacharya and Harvinder Singh of DSK Legal acted as legal advisors to IDP Education Limited.

Lazard Ltd acted as financial advisor to Indian IELTS operations of British Council. Greenhill & Co., Inc acted as advisor for British Council. Darshika Kothari and Divya Mundra of AZB & Partners and Hogan Lovells acted as legal advisor to British Council.

Greenhill & Co. Australia Pty Limited acted as financial advisor to IDP Education.