HighConsy, which runs SDIJ, is pushing to acquire Danbi Education, which operates the Wink learning program for preschool and elementary students. In addition to acquiring Haneul Education, an elementary and middle school education company, earlier this year, it also bought equity in Mathpresso, which runs an artificial intelligence (AI) math education platform, ascending as a major player in the private education mergers and acquisitions (M&A) market.
According to the investment banking (IB) industry on the 31st, HighConsy moved to acquire 75% equity for management control of Danbi Education held by Tony Investment, a new technology business finance company, and entrance exam prep company Etoos Education. It was also reported to have signed a stock purchase agreement (SPA) recently with Anchor Equity Partners (Anchor PE), the largest shareholder of Etoos Education.
The transaction price for 75% equity for management control of Danbi Education is said to be about 38 billion won. Tony Investment, a financial investor (FI), plans to inject capital by setting up a project fund for the acquisition of Danbi Education, and HighConsy was understood to plan to commit part of the capital to the project fund as a strategic investor (SI).
Danbi Education was founded in 2016 by Chief Executive Kwon Young-geum, who designed the Icecream Home-Learn smart learning service for preschool and K-12 at i-Scream edu, an Edtech company. Wink, which guides children's learning by combining print textbooks with a dedicated smart pad, is its core service, and last year it posted 67.1 billion won in standalone revenue.
Anchor PE started with a minority equity investment in Etoos Education in 2015 and has since risen to become the largest shareholder with about 60% equity. Previously, Anchor PE acquired Danbi Education as a subsidiary of Etoos Education to expand Etoos Education's preschool and elementary education business and even sought to list Danbi Education in 2023, but the attempt fell through.
There is an assessment that HighConsy, through its acquisition of Danbi Education, has moved to expand its business scope across the private education market. Having become the top private entrance exam operator in Daechi-dong with SDIJ, HighConsy this year acquired Haneul Education, an elementary and middle school education company, and also became a major shareholder of Mathpresso, which operates the AI math education platform "QANDA."
An IB industry official said, "HighConsy is building an age-segmented education business structure extending beyond a high school entrance exam-centered model to elementary and middle school, and even preschool and children," and added, "In particular, since Anchor PE faced difficulties exiting due to the failed listing of Danbi Education, the acquisition talks are understood to have proceeded quickly."