• Nido to acquire two incubator services for $7 million
• Signed $30 million extension to acquisition facility
• Increased bank guarantee facility to $15 million
• Capacity to acquire further $7 million+ in EBITDA

Nido Education Limited (ASX: NDO) has announced that it has agreed terms to acquire two services from its incubators in December 2025 for a combined purchase price of circa $7 million. The services each have an occupancy above 90%, with one service having been trading for 18 months and the other just over 2 years. Settlement is planned for December 2025, at which time the Company will provide further details. To accommodate its growth strategy, Nido has signed binding agreements to establish a $30 million extension of its acquisition facility, as contemplated under its previous announcement dated 8 February 2024. The Company has also increased the bank guarantee facility from $12 million to $15 million. With a further $33 million available in headroom, Nido has the capacity to acquire a further $7 million+ in EBITDA. Nido remains committed to its existing incubation growth strategy, as outlined in its announcement dated 3 November 2025. Services need to achieve $5,500 EBIT per place and an average occupancy of 80% over a six-month period for Nido to exercise its call option at 4.5x EBIT.

Trading remains subdued, but it is encouraging to see services in the incubator beginning to trade up in line with expectations, which bodes well for acquisitions in 2026.