The board of Stagecoach Theatre Arts has accepted a conditional £6.5 million buyout offer from Lifeskills Education.
Lifeskills has offered to pay 65 pence in cash for each share – a premium of approximately 66.7% to the closing price of 39 pence achieved on Thursday.
If the deal goes ahead, Stagecoach will de-list its shares from the Aim market.
Lifeskills Education is an investment vehcile wholly-owned by director Shirin Gandhi.
He said in a statement: "I have been investing in UK companies for many years and recognise Sagecoach's established reputation as an operator of part time theatre arts schools for children.
"I believe that if management, without the confines of the public markets, prioritise their opportunities, then the prospects for the business will be enhanced."
Stagecoach's chairman Graham Coal described the deal as "an opportunity for Stagecoach Shareholders to achieve an immediate cash exit for their shareholding at a significant premium to the company's recent share price".
The announcement comes just days after the group posted results showing that it slipped into loss in 2011.
In the six months to 30 November, the group made a pre-tax loss of £66,000 (2010: £72,000 profit). This represents a loss per share of 0.4 pence (2010: earnings per share of 0.6 pence).
Group revenue decreased slightly, from £2.9 million to £2.8 million.
Stagecoach credited the loss to a 2.4% decline in the number of students, thanks largely to a number of closures or mergers in areas of the country worst hit by the economic downturn.
But average occupancy remains at over 90%, the group said.
In a statement, Cole said: “Trading has generally remained level during this difficult economic period, although we have felt the effects of the downturn on schools and student numbers in the UK.
“However, we have demonstrated our resilience during previous recessions and throughout our 24 year history and are pleased that the demand for performing arts tuition remains strong.”
He added that the outlook for the group's operations in Germany and North America was "encouraging".
Stagecoach Theatre Arts operates the UK's largest franchise network of part-time performing art schools for children.