VEDU - Visionary Education Technology to acquire majority stakes in edtech at $7.2M cash

• Visionary Education Technology Holdings Group ( NASDAQ: VEDU ) stated Wednesday that it has signed a letter of intent to acquire majority stakes in Beijing InnoBuddy Technology's (IBT) edtech platform at $7.2M in all-cash deal.
• The transaction was executed through VEDU's subsidiary Visionary Education & Service Management and includes the purchase of 75% equity interest of IBT’s wholly-owned Shanghai Jinhuiercheng Technology (OMO).
• The company told OMO has an international education platform, Smart system, and related intellectual property rights, and six directly operated Online-Merge-Offline learning centers in Shanghai and approximately 100 school customers in China.
• After the acquisition of these shares, IBT shall hold the remaining 25% of the shares.
• "Leveraging OMO's artificial intelligence and deep learning technologies, we plan to expand its OMO centers to other major cities in China and potentially to more regions in the Asia Pacific. We also plan to consolidate OSSD programs in Canada and Griggs China's U.S. GIA high school courses into the OMO platforms in China and potentially broad Asia Pacific region," commented VEDU's CEO and COO David Xu.
• The parties have agreed to not to participate in any solicitation or acquisition bid for OMO until December 31, 2022.
• VEDU shares are up 1.5% in premarket on Wednesday.
• Earlier: Visionary Education Technology GAAP EPS of $0.00, revenue of $5.2M

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