CIBT will receive $13.5 million in cash from Toronto-based Loyalist in exchange for King George International College and King George International Business College. Loyalist will pay the funds in two installments, $9.5 million on closing and $4 million six months from the closing date, expected to occur soon.
Under terms of the agreement, CIBT will oversee operations of both King George colleges in China as the exclusive licensee.
The Vancouver-based company is making a $9 million or 14 cents a share profit as a result of the deal after acquiring the King George assets for a price tag of $4.5 million in March 2010. CIBT said the colleges' annual revenue has grown more than 50% to $25 since the purchase and the student body has risen 60% to 8,000 students.
“We are pleased with our return on investment from this transaction in 3.5 years,” said president, CEO, and vice-chairman Toby Chu.
CIBT said it will concentrate on its other brands, including Sprott Shaw College, Ascenda School of Management and CIBT School of Business China.
"We will focus on the Canadian domestic market as our base, and expand our international network of student recruitment for substantial growth," the company said in a release.
CIBT plans to broaden its student base through the acquisition of schools with an emphasis on long-term technical training, university-level degree programs and kindergarten to grade 12 education. This includes deals for a chain of K-12 schools in Asia that would act as feeders to partners in Canada and the U.S.
It said it also plans to recruit more international students by expanding its Global Education Alliance division and gather a portfolio of real estate projects to provide accomodation for students attending schools in North America.
Taking a shopping mall approach, CIBT said it is developing two education super centres in Vancouver. The concept, called Global Education City, will attempt to consolidate public and private educational institutionsm, as well as a long-stay hotel, at one centralized location. The centre will also have recruitment agencies, travel agencies, immigration consultants and financial institutions.