VIG acquires Korean education business
VIG Partners has agreed to pay KRW165 billion ($137 million) for a controlling stake in D.Share, an online-offline English language education provider in Korea.
It marks the first investment from VIG’s fourth fund, which has a hard cap of $850 million and reached a first close earlier this year of $530 million. The size of the majority stake has not been disclosed. The deal is expected to be finalized in early November.
D.Share provides private English courses for high school students preparing for the national college entrance exam and application process. The company markets itself as a local pioneer in mixed online and offline teaching services. This model is seen as benefiting from the customization options that come with an online offering as well as the advantages of the hands-on, instructor-based management associated with traditional classrooms.
Operations include seven branded services, 77 branch locations and a large pool of instructors who regularly monitor each subscribing student. The company recorded revenue of KRW48.2 billion and operating income of KRW17.9 billion in 2018. Revenue is on pace to exceed KRW70 billion this year, according to a statement. VIG will support this growth through talent recruitment and the development of new business lines.
“D.Share’s unique business model is unmatched by any other industry players in terms of its scalability and profitability,” said Chulmin Lee, a managing partner of VIG. “VIG is convinced that the current platform will further evolve and can be expanded into other new businesses under the partnership with the existing management of D.Share”.
VIG focuses on control investments in mid-market companies targeting the domestic consumption space. Recent activity includes exits for parking management business HiParking and camera lens manufacturer Samyang Optics, which generated 3.2x and 3.5x returns, respectively. Last year, the firm acquired restaurant chain Bonchon International with plans to triple its footprint within five years to 1,000 locations.
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