Tarena International Inc. (NASDAQ: TEDU) revealed that it had won an antitrust approval with Chinese regulators regarding its proposed business combination with Kidedu Holdings and Merger Sub’s wholly-owned subsidiary Kidarena Merger Sub.
Tarena to merge with Kidedu Holdings
As per the terms of the agreement, Merger Sub will combine with Tarena. However, it will continue as the surviving company, which will become a subsidiary of Merger Sub in a deal that implies Tarena’s value to be $230.6 billion. According to a regulatory filing, the Buyer Group has already received PRC Antitrust approval for the proposed merger.
Tarena reports Q1 2021 financial results.
Recently, Tarena released its Q1 2021 financial results in which net revenues were $81.5 million, an 80.9% YoY increase. Notably, K-12 education business net revenue, which represented 52% of the total revenue, was up 239.8% YoY to $42.5 million, while adult education net business which represented 47.9% of net revenues, was up 19.9% to $39 million Gross profit grew 804.5% YoY. The company ended the quarter with $47.7 million in time deposits, cash, and cash equivalents.
Adult education learning centers dropped to 96 from 114 YoY, and K-12 education learning centers were up to 236 from 232 YoY. CEO Ms. Ying Sun said, “The number of student enrolments for K-12 education increased by 50.7% to 135,500 in the first quarter of 2021 from 89,900 in the same period of 2020. The number of new students recruited for K-12 education increased by 78.8% to 15,200 in the first quarter of 2021 from 8,500 in the same period of 2020.”
Sun added, “Looking ahead, we will continue to optimize the user experiences and quality of our curriculum products and services, strengthen our research and development capability, and uplift our operational efficiencies. Moreover, we will continue to build and strengthen our company and product brand, for both adult professional education and K-12 IT education.”