China First Capital to acquire Korean online education platform
Hong Kong-listed investment group China First Capital plans to acquire 54% of SJW International, a Korea-based online video English training platform, for about $135 million.
Singapore’s Rhodium Capital, a wealth management and private equity firm, and Hong Kong-based Widus Partners also participated in the transaction. Widus acted as a financial advisor to the seller.
Founded in 2006, SJW provides online English courses and one-on-one live tutoring for adults and children. It also offers courses in Chinese, Japanese, and Spanish. The company claims to be the largest player in Korea's online adult language learning space with a 63% market share. It is developing a new adaptive learning platform and plans to expand overseas
SJW generated KRW16.42 billion ($14.9 million) in net profit last year, up from KRW11.47 billion in 2015. It had KRW26 billion in net assets as of December.
“Online language education, which enables a high level of personalization, is able to meet the needs of different learner groups, thus benefiting the development of the overall online education market. This sector has attracted continuous capital market attention by which it is encouraged to reform and upgrade,” Victor He, deputy CEO at China First Capital, said in a statement.
China First Capital invests in education assets and provides financial services to institutional clients. Last year, it backed several education projects in China and abroad, including Kunming Professional College of Arts and Australia’s G8 Education. The company also collaborates with industry partners to set up investment funds to invest in education assets, such as Beijing Experimental Foreign Language School.
Widus started as a financial advisor for start-ups and small to medium-sized enterprises in Asia and the US in 2010. It launched a $100 million opportunity fund last year, with commitments from Korean and Chinese LPs. The vehicle focuses on media, cosmetics, and education.
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