Amanat Holdings, a dedicated healthcare and education investment company, has recently announced the acquisition of a 60% stake in Human Development Company (HDC), a leading provider of special education and care (SEC) services in Saudi Arabia, for an initial consideration of SAR 220.3 million (about US$59 million).
The deal also includes a contingent consideration of up to SAR 47.1 million (US$12 million) payable subject to future earnings growth.
HDC, started in 2007, is a leading provider of special education and care services covering educational, medical, and rehabilitation services in Saudi Arabia. It has its presence across 6 provinces and caters to over 3,000 beneficiaries through a network of 9 schools, 22 daycare centers, and specialized rehabilitation medical clinics. HDC is renowned for its commitment to providing high-quality services governed by automated digital solutions through Rehadox software, which was internally developed and implemented in the company’s daycare centers.
The acquisition of HDC will bolster Amanat’s healthcare and education platforms by expanding its reach to people of determination, the company said. The special education and care sector is underserved regionally with strong underlying growth drivers, and Amanat will focus on the development of this sector with the goal of enhancing quality and access to this vulnerable segment of the population, it said. HDC’s commitment to a high-quality service offering and its proven scalable business model make it well-positioned to be a leading driver in the development of the SEC sector in the region, the company added.
Commenting on the transaction, Amanat’s Chairman, Hamad Alshamsi said in a statement:
The acquisition of a majority stake in HDC meets Amanat’s stated strategic objectives of investing in income-generating assets and building scalable specialized platforms. HDC will act as the cornerstone in Amanat’s pursuit of being a leader in the provision of special education and care in the region, having a proven track record of providing high-quality services through a growing network. Amanat has identified a need for the provision of special education and care in the region and is well-positioned to expand this specialized offering regionally to meet the growing need. We look forward to building on HDC’s track record and reaping the benefits of anticipated synergies with both our healthcare and education platforms.
Chief Executive Officer of Amanat, Dr. Mohamad Hamade, added:
The addition of HDC to our portfolio will enable us to expand SEC regionally and lead in growing this specialized sector while creating a lasting and meaningful social impact on the communities we operate in, as we continue to invest, grow, and impact.
Through the transaction, Amanat will partner with a pioneering leadership team led by the founder of HDC, Dr. Omar Al Modayfer, a Senior Consultant Psychiatrist specializing in child and adolescent psychiatry and family therapy.
Dr. Omar Al Modayfer, HDC’s Founder and Chairman, said,
I am delighted to be partnering with Amanat on the next phase in the growth journey of HDC. Delivering on KSA’s Vision 2030 and leading in providing specialized care to people of determination while catering to their educational requirements continue to be fundamental pillars of our mission here at HDC. With the support of Amanat as shareholders, we are excited to work towards expanding our geographic footprint even further in the Kingdom and throughout the GCC, as well as advancing the institutionalization of HDC as we take it to the next level of success over the coming years.
Amanat Holdings is the GCC’s only dedicated healthcare and education investment company with paid-up capital of AED 2.5 billion. Listed on the Dubai Financial Market since 2014, Amanat’s mandate is to establish, acquire and integrate companies in the healthcare and education sectors, and develop, manage, and operate these companies within the MENA region and beyond. Amanat’s healthcare platform includes Cambridge Medical and Rehabilitation Center, Sukoon, and Al Malaki Specialist Hospital, and its education platform includes NEMA Holding (formerly Abu Dhabi University Holding Company), a leading provider of higher education in the UAE, and Middlesex University Dubai, the first overseas campus of the internationally renowned Middlesex University in London.
