Laureate Education acquires 80% of Universidad Peruana de Ciencias Aplicadas (UPC)

The shareholders of Universidad Peruana de Ciencias Aplicadas (UPC), one of the leading universities in Peru, sold 80% of their equity stake to a Peruvian subsidiary of Laureate Education, an American company listed in Nasdaq. The share transfer closed on September 14, 2004. The value of the deal was not made public.

Eduardo López from Rodrigo, Elias & Medrano Abogados commented: ?This is the most important M&A deal ever completed in the education sector in Peru and the first one to include a considerable foreign direct investment component. Given the outlook of potential growth in the Peruvian education market, which shows a large unsatisfied demand and ample space for private investment ?state universities manage to cover only 17% of the university student population?, it is probable that this deal sets the standard for what may be a trend of educational integration in the future.?

Laureate Education includes a network of 18 accredited educational institutions, with 136,500 students in 12 countries of America, Europe and Asia. UPC has a student population of over 5,000 students and had revenues in fiscal year 2003 of over US$24 million.

The selling shareholders took counsel from Rodrigo, Elias & Medrano Abogados through partner Jean Paul Chabaneix and associates Eduardo López and Liliana Mavila. Founding partner Humberto Medrano and associate Jose Chiarella advised on tax matters and partners Luis Arbulu and Jose Balta advised on labor matters.

Laureate Education was represented by Pablo Guerrero and Nicolás Balmaceda of Barros & Errazuriz Abogados in Chile and by Mariano Peña of Estudio Peña, Lozano & Faura Abogados in Peru.