Afya (AFYA) said Thursday its subsidiary Afya Participacoes will acquire Faculdade Masterclass for 100 million reais ($16.3 million), excluding net debt, adding 60 medical school seats for the medical education company in Contagem, Brazil.

Under terms of the purchase agreement, Afya will pay 60 million reais in cash at closing, with the remaining funds due in annual installments over the next three years, adjusted by Brazilian interbank interest rates and subject to approval by anti-trust regulators and other customary conditions.

The deal also includes the potential for up to 60 additional seats over the next three years, subject to approval by Brazil's Ministry of Education and a payment of 1 million reais per seat, Afya said.

Afya shares recently were more than 3% higher.

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