EdtechX Holdings Acquisition Corp, the special purpose acquisition company, and Meten International Education Group, an English language training service provider in China, have completed their previously announced merger.
The combined entity will operate as Meten EdtechX Education Group and will continue to focus on providing English language and future skills training for Chinese students and professionals.
EdtechX and Meten have also completed the private placement of $36million from institutional investors including Azimut, an Italian asset manager with assets under management of more than $60 billion, and Xiamen ITG Holding Group which is engaged in range of industries across China including education.
These investments add to the previous investments into Meten by China International Capital Corporation and private equity funds affiliated with Tsinghua University. The funding is expected to be used to accelerate the expansion of Meten’s ELT offering and its digital platform, Likeshuo, as well as fund potential synergistic and accretive acquisitions in China and internationally.
Benjamin Vedrenne-Cloquet, chief executive of EdtechX, and Charles McIntyre, chairman and chief investment officer of EdtechX, issued a joint statement saying: “We believe that the closing of these simultaneous transactions during these unprecedented market conditions is a significant achievement. It is testament to the strong fundamentals of the Chinese ELT market, characterised by rapid growth in demand for practical English language learning, and the robust expansion strategy pursued by Meten EdtechX which leverages an efficient omnichannel business model and technology to deliver profitable growth.
“While the current Covid-19 pandemic continues to affect global economies, it has also created the conditions for accelerated adoption of online education and training globally. This is a trend we expect to continue in the long term.”
Alan Peng, chief executive of Meten International Education Group, added: “The closing of this merger marks a significant milestone for Meten, an achievement made possible through the support of investors across the world and the dedication of management teams on both sides of the transaction. We look forward to working with Benjamin and Charles to deliver our growth strategy, taking full advantage of the extensive industry experience of our new board directors and the additional funding raised in connection with the transaction.”
Meten EdtechX’s ordinary shares will trade on the Nasdaq stock exchange under the symbol METX. Vedrenne-Cloquet and McIntyre have joined the board of Meten EdtechX as independent directors.
Chardan acted as financial and capital markets advisor to EdtechX. Macquarie acted as financial advisor to Meten. Graubard Miller acted as legal counsel to EdtechX and Morgan, Lewis & Bockius and Conyers acted as legal counsels to Meten. Loeb & Loeb acted as special legal advisor to Chardan. Citigate Dewe Rogerson and Inbound Capital acted as investor relations advisors for the merged entity Meten EdtechX.
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Date published: 31 March 2020