Key Takeaways
- • Blackstone has made a sweetened non-binding takeover proposal for IDP valued at $573.3m, about 20% above its previous September offer of $493.93m, marking its third approach for the company.
- • IDP has not decided whether to accept the proposal and has warned there is no guarantee an acquisition will proceed.
- • IDP rejected the September bid as too low and "highly opportunistic," arguing it did not account for the company's future earnings potential.
- • IDP's FY26 revenue fell 9% to AUD 795.4m, which the company attributed to tighter immigration policies and falling student numbers.
- • Blackstone declined to comment, while analysts described the higher bid as enough to open discussions but not enough for a recommendation.
Summary
Blackstone has submitted a sweetened non-binding takeover proposal for IDP worth $573.3m, according to The PIE News, citing Reuters. The offer is roughly 20% higher than Blackstone's most recent bid and represents the private equity firm's third approach for the student placement and language testing services provider.
IDP rejected Blackstone's earlier $493.93m offer in September, describing it as too low and calling it a "highly opportunistic" proposal that failed to account for the company's future earnings potential. The company has not yet decided whether to accept the new proposal and has warned shareholders that there is no guarantee an acquisition will take place. Blackstone has declined to comment.
David Tuckwell, chief investment officer at ETF Shares, told Reuters that the higher bid is "enough to start a conversation and probably to open the books, but not enough for a recommendation." He added that "Blackstone is buying a market-leading global platform at a cyclical low," and noted that IDP's co-ownership of IELTS makes it a scarce and cash-generative asset.
The approach follows a difficult period for IDP. In the summer, the company reported a 9% decline in revenue to AUD 795.4m for FY26, which it attributed to tighter immigration policies and falling student numbers. Strict immigration rules across major markets have weighed on the business, with the UK and Australia tightening compliance, uncertainty in the US under the Trump administration, and Australia and Canada both capping international student numbers.
In September, IDP also confirmed it was consolidating 15 of its Indian student placement locations into larger nearby offices following a review of its Indian business amid challenging recruitment conditions.
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IDP rejected Blackstone's earlier $493.93m offer in September, describing it as too low and calling it a "highly opportunistic" proposal that failed to account for the company's future earnings potential. The company has not yet decided whether to accept the new proposal and has warned shareholders that there is no guarantee an acquisition will take place. Blackstone has declined to comment.
David Tuckwell, chief investment officer at ETF Shares, told Reuters that the higher bid is "enough to start a conversation and probably to open the books, but not enough for a recommendation." He added that "Blackstone is buying a market-leading global platform at a cyclical low," and noted that IDP's co-ownership of IELTS makes it a scarce and cash-generative asset.
The approach follows a difficult period for IDP. In the summer, the company reported a 9% decline in revenue to AUD 795.4m for FY26, which it attributed to tighter immigration policies and falling student numbers. Strict immigration rules across major markets have weighed on the business, with the UK and Australia tightening compliance, uncertainty in the US under the Trump administration, and Australia and Canada both capping international student numbers.
In September, IDP also confirmed it was consolidating 15 of its Indian student placement locations into larger nearby offices following a review of its Indian business amid challenging recruitment conditions.
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