Tsinghua University-backed Meten Education will merge with EdtechX to pursue market share with Chinese students and young professionals.
Meten Education, a China-based English language coaching provider backed by Tsinghua University, is to merge with special purpose acquisition company EdtechX at an implied $535m equity valuation, Private Equity Wire reported on Friday.
EdtechX will pay Meten stockholders a maximum of $100m in capital including up to $20m from asset management firm Azimut Enterprises – one of EdtechX’s backers, which also include unnamed affiliates of investment bank IBIS Capital.
Meten is an English language-focused education provider with 149 physical learning centres across 32 Chinese cities in addition to remote courses offered over the internet.
The company has distinct brands for junior and adult learning, as well as a digital strand geared toward young Chinese professionals.
EdtechX’s cash will go to expanding the business, both organically and through the M&A market. The company, which will be called Meten EdtechX going forward, aims to reach more than 600 Chinese cities, with services tailored to students and young professionals.
Meten last raised $43m in a January 2019 series C round led by investment bank China International Capital that featured Tsinghua University’s online education-focused investment unit, MOOC-CN Education Investment, as well as investment vehicle and banking services provider DGC, according to media reports.
The company had already raised $25.6m of series B funding in 2016 from DGC and the Chinese government-driven National SME Development Fund, following capital secured from Dachen Venture Capital at an undisclosed date.
