Nido’s Edge agreement offers a fresh start and questions for the sector

Nido’s proposed acquisition of nine Edge Early Learning services offers the prospect of continuity for children, families and educators. It also raises questions about what makes an early learning service sustainable.

Nido Education has entered into an agreement to acquire nine services operated by Edge Early Learning, following Edge’s administration announcement.

Nido said the agreement was its first acquisition under a strategy announced in April. Completion remains subject to regulatory approvals and the assignment of relevant leases.

Nido has identified an opportunity to build on established early learning communities and support continuity for children and families.

For a family, a change of ownership raises immediate questions. Will their child’s service stay open? Will familiar educators remain? What will support the service’s long-term viability? What will change, and how will this be communicated?

For educators, the questions are personal too. Will there be a role for them under the new operator? Will there be job security? What will their working arrangements look like? Who can give them clear, reliable answers?

Continuity depends on the people

An acquisition offers the possibility of a fresh start. But signing an agreement is only one step towards providing certainty.

Keeping a service open matters. So does retaining the people who know the children and have built trusting relationships over weeks, months and years. It is knowing the small details of each child’s needs, development, routines and family dynamics.

Educators also have ongoing households and financial commitments. Clear information about employment, timing and next steps should be a priority, including honest communication about what remains undecided. Staff meet-and-greets and a regularly updated list of frequently asked questions could help.

Nido’s announcement has not confirmed employment arrangements and these remain important details for educators and families as the proposed acquisition progresses.

What can other operators learn?

Edge’s administration is unsettling. It raises questions for the ECEC sector, but we need to be careful about the conclusions we draw.

The acquisition announcements do not, on their own, explain the full circumstances behind Edge’s financial difficulties. However there are useful questions for providers heading into 2027: what would we want to understand about our own business before financial pressure becomes a crisis?

This may include examining occupancy, staffing expenditure, lease commitments, cash flow and the capacity to fund improvements. It also means asking whether operators and management receive information early enough to act upon and in a strategic manner.

Understanding service performance is key. This includes financial reporting and forecasting, alongside navigating all the current changes linked to compliance, funding, child safety and external pressures such as the cost of living. Is there a plan to retain funds for unexpected expenditure while meeting ongoing expenses?

These considerations also affect how staff are supported, when decisions are made and how the impact on educators, families and children are taken into account across all the areas of the service and offerings.

We also need to look at all the services doing well. What are they doing differently to keep their heads above water? Understanding how they support quality, look after their teams and retain enough money to reinvest could offer useful lessons for other operators.

A future across ownership models

Nido’s agreement sits alongside acquisition activity involving Goodstart and Montessori Academy. These developments involve both not-for-profit and private operators. They give us reason to look beyond an ownership label and examine what an incoming provider will deliver.

For the affected communities, the next stage will be measured in practical terms: whether families receive clear answers, educators are supported through decisions about their employment, and children can continue their learning and development with people they trust and know.

Read the Nido ASX announcement here.

Fiona Alston is Editor of The Sector. This article draws on her experience in early childhood operations, quality, compliance and leadership.