Amanat Holdings, a healthcare and education investment company, said it has acquired a 60% stake in Human Development Company (HDC), a leading provider of special education and care (SEC) services in Saudi Arabia, for SR220.3 million ($60 million) as well as a contingent consideration of up to SR47.1 million payable subject to future earnings growth.
A major player in the region, HDC has presence across 6 provinces and caters to over 3,000 beneficiaries through a network of 9 schools, 22 daycare centers and specialized rehabilitation medical clinics.
Announcing the strategic stake buy, Amanat said the transaction was in line with its strategy and strengthens both its healthcare and education platforms by expanding their reach to cater for people of determination.
The SEC sector is underserved regionally with strong underlying growth drivers, and Amanat aims to lead the development of this sector with the goal of enhancing quality and access to this vulnerable segment of the population, it stated.
HDC’s commitment to a high-quality service offering and its proven scalable business model make it well positioned to be a leading driver in the development of the SEC sector in the region.
Through the transaction, Amanat will partner with a pioneering leadership team, led by the founder of HDC, Dr Omar Al Modayfer, a senior consultant psychiatrist specialising in child and adolescent psychiatry and family therapy.
On the stake deal, Chairman Hamad Alshamsi said: "It meets Amanat’s stated strategic objectives of investing in income generating assets and building scalable specialized platforms. HDC will act as the cornerstone in Amanat’s pursuit of being a leader in the provision of special education and care in the region, having a proven track record of providing quality services through a growing network."
Amanat has identified a need for the provision of special education and care in the region and is well positioned to expand this specialized offering regionally to meet the growing need.
"We look forward to building on HDC’s track record and reaping the benefits of anticipated synergies with both our healthcare and education platforms," he added.
CEO Al Mohamad Hamade said: "The addition of HDC to our portfolio will enable us to expand SEC regionally and lead in growing this specialized sector while creating a lasting and meaningful social impact on the communities we operate in, as we continue to invest, grow, and impact."
HDC has a promising growth trajectory and sizable addressable market, he noted, adding that it is well positioned to scale its network in Saudi Arabia as well as expanding its footprint to the UAE and the rest of the GCC.
HDC’s Founder and Chairman Dr. Omar Al Modayfer said: "I am delighted to be partnering with Amanat on the next phase of HDC's growth journey. Delivering on KSA’s Vision 2030 and leading in providing specialized care to people of determination while catering to their educational requirements continue to be fundamental pillars of our mission here at HDC."
"With the support of Amanat as shareholders, we are excited to work towards expanding our geographic footprint even further in the Kingdom and throughout the GCC, as well as advancing the institutionalization of HDC as we take it to the next level of success over the coming years, he added.--TradeArabia News Service
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