Cluey Raises $4.5M to Acquire Education Futures Group and Expand In-Person Tutoring
Cluey Ltd announces its acquisition of Education Futures Group, owner of Art of Smart, for up to $6.5 million, supported by a $4.5 million fully underwritten entitlement offer. This move broadens Cluey’s tutoring services to include in-person learning across NSW campuses.
- Acquisition of Education Futures Group (Art of Smart) for up to $6.5 million
- Launch of $4.5 million fully underwritten entitlement offer at $0.07 per share
- Expansion into in-person tutoring alongside Cluey’s online offerings
- Entitlement offer proceeds to fund acquisition cash component, integration, and growth
- Completion subject to due diligence, definitive agreements, and key executive commitments
Cluey’s Strategic Acquisition
Cluey Ltd (ASX, CLU), Australia’s leading online tutoring company, has taken a significant step to diversify its education services by entering into a binding terms sheet to acquire 100% of Education Futures Group Pty Ltd (EFG), the parent company of the Art of Smart group. The acquisition, valued at up to $6.5 million, will integrate Art of Smart’s established in-person tutoring campuses in New South Wales with Cluey’s extensive online learning platform.
This deal is structured with a combination of cash and scrip payments, including an earnout component tied to future earnings growth, reflecting confidence in the combined entity’s potential. The acquisition aligns with Cluey’s strategy to offer a comprehensive portfolio of learning options, spanning online, on-campus, and hybrid models.
Funding the Expansion
To support the acquisition and its integration, Cluey has launched a fully underwritten entitlement offer to raise approximately $4.5 million at an issue price of $0.07 per share, representing a discount to recent trading prices. The funds will cover the initial cash payment for the acquisition, transaction and integration costs, and provide capital for growth initiatives.
Notably, key executives including Chairman Robert Gavshon and Deputy Chairman Mark Rohald have committed to fully participate in the entitlement offer, signaling strong internal support for the transaction.
Synergies and Growth Prospects
The acquisition is expected to unlock multiple synergies. Art of Smart’s in-person tutoring model caters primarily to senior secondary students across three NSW campuses, offering high lifetime value and average revenue per student. Cluey’s robust online customer acquisition capabilities and data analytics will enable Art of Smart to expand efficiently, identifying optimal new campus locations and extending its reach beyond its current core demographic.
Furthermore, Cluey’s expertise in delivering tutoring across all year levels and subjects will complement Art of Smart’s offerings, potentially broadening the combined group’s market appeal. The integration promises enhanced content development, technology innovation, and streamlined customer acquisition strategies.
Conditions and Next Steps
The acquisition remains subject to customary conditions including satisfactory due diligence, execution of a definitive share sale agreement, and receipt of necessary consents. The entitlement offer is contingent on the acquisition proceeding and may be withdrawn if the transaction does not complete.
Cluey’s joint CEO Matteo Trinca highlighted the strategic importance of this move, emphasizing the company’s commitment to meeting diverse student learning preferences through a blended education model. The acquisition is expected to close in early 2026, with the entitlement offer timetable running through December.
Bottom Line?
Cluey’s acquisition signals a bold step into blended education, but investors will watch closely as integration and growth unfold.
Questions in the middle?
- Will the acquisition deliver the anticipated synergies and revenue growth?
- How will Cluey balance investment between online and in-person tutoring services?
- What impact will the entitlement offer have on Cluey’s share price and shareholder base?
