Nido Education strengthens national footprint with $9.1 million acquisition of four childcare services

Nido Education Limited (ASX: NDO) has continued its expansion strategy, confirming the $9.1 million acquisition of four early childhood education and care services across Western Australia and South Australia.

The transaction expands Nido’s owned network and reinforces the company’s focus on growing high-quality early learning services in strategically selected metropolitan and growth-corridor markets.

The newly acquired services are expected to add meaningful capacity to Nido’s portfolio, supporting the company’s strategy of increasing directly owned centres while continuing to scale its national presence.

The four services collectively provide an uplift in licensed places and are anticipated to contribute positively to earnings following integration.

While individual service details were not disclosed, the acquisition aligns closely with Nido’s established growth model, which has focused on:

• identifying centres in locations with strong demographic fundamentals
• targeting communities with sustained demand for long day care
• acquiring services with potential for operational improvement through leadership, pedagogy and brand alignment
• expanding in markets that support long-term occupancy growth

This disciplined approach has underpinned Nido’s expansion since listing, enabling the company to grow while maintaining consistency across its network.

The acquisition is also expected to enhance Nido’s operating scale and earnings profile, with the additional centres contributing to revenue growth and broader network efficiencies.

As the owned portfolio expands, the company may benefit from:

• increased control over service quality and workforce strategy
• stronger margin capture compared with management-only arrangements
• improved long-term asset value
• greater stability in recurring cash flow generation

The move also supports Nido’s broader portfolio mix of owned, managed and incubator services, a structure designed to balance growth with disciplined capital deployment.

Nido’s latest acquisition comes as the early childhood education and care sector continues to adjust to a complex operating environment shaped by workforce shortages, rising operating costs, regulatory reform and uneven occupancy conditions across jurisdictions.

Despite these challenges, established providers with strong governance frameworks and access to capital remain well placed to pursue selective growth opportunities.

The acquisition of four additional services signals confidence in the long-term fundamentals of the sector, particularly in regions supported by population growth, housing development and workforce participation trends.

With the transaction confirmed, attention is likely to shift to successful integration across the newly acquired services, including:

• occupancy growth
• leadership transition and educator onboarding
• alignment with Nido’s educational model
• family and community engagement
• operational consistency across the broader network

Successful delivery in these areas will be central to realising the full value of the acquisition.

For investors and sector stakeholders, the announcement reinforces Nido’s position as a growth-focused operator with a clear national strategy.

The company’s continued ability to execute acquisitions while expanding operationally highlights ongoing momentum in an increasingly competitive early learning market.

Read the ASX announcement here.