In a strategic move to expand its portfolio in the education sector, Cinven, a prominent international private equity firm, has entered into an agreement to acquire a majority stake in Universidad Alfonso X el Sabio Group (UAX) from CVC Funds. This transaction is a notable partnership that also includes Jesús Núñez, the founder of UAX, and Mubadala Investment Company, a state-owned investment vehicle from Abu Dhabi, which further emphasizes the deal's significance in the realm of private higher education in Spain.
Founded in Madrid in 1993, UAX has grown to become a key player in the Spanish private education landscape, offering a diverse range of undergraduate, postgraduate, and technical vocational programs across various disciplines, including health sciences, engineering, business, education, and arts. The institution has seen a remarkable increase in student enrollment, rising from 8,000 to 35,000, reflecting a compound annual growth rate (CAGR) of 23%. This growth can be attributed to UAX's investments exceeding €350 million aimed at enhancing facilities, including the establishment of new campuses in Madrid and Málaga, as well as the introduction of innovative academic offerings.
While the financial specifics of the transaction have not been disclosed, the investment aligns with Cinven's strategy to tap into the growing demand for quality education and vocational training in Spain. The involvement of Jesús Núñez and the management team, who will reinvest in the institution, underscores their commitment to UAX's future growth and development.
The acquisition is expected to not only bolster UAX's existing programs but also expand its corporate partnerships aimed at improving employability for graduates. UAX has already made strides in this area by collaborating with notable entities such as Rafa Nadal and LaLiga, enhancing its brand in the sports segment.
As for the timeline, the deal is subject to customary regulatory approvals, including antitrust considerations, which will be assessed to ensure compliance with local competition laws. Once finalized, this acquisition is poised to create significant opportunities not just for UAX's stakeholders, including students and faculty, but also for the broader educational market in Spain, potentially influencing market dynamics and investment strategies in the sector.
In summary, Cinven's acquisition of UAX from CVC Funds represents a strategic investment in a rapidly growing sector, promising to enhance educational offerings and expand employment opportunities for students while solidifying UAX's position as a leader in private higher education in Spain.