Why is STI Acquiring PSBA?
Earlier this week, listed STI Education Systems Holdings Inc., which operates a network of schools around the country, announced that it is acquiring the Philippine School for Business Administration (PSBA).
The term sheet for the deal covers the takeover by STI of the operations of PSBA as well as the acquisition of licenses, trademarks, trade names and school-related assets owned by PSBA.
STI did not immediately reveal the cost of the deal.
However, in a subsequent filing, STI did provide additional details about the transaction, including its reasons for making the deal in the first place.
“We are now seeing the landscape of employment evolve,” STI Holdings President Monico Jacob said. “It makes sense that education must evolve as well. The acquisition is a significant step in this direction for the company.”
ALSO READ
Students Can Borrow Up to P15,000 Per Term in This Study Now, Pay Later Program
STI Confirms Shutting Down 12 Schools Due to Low Enrollment
Why is STI buying PSBA?
According to STI, the decision to acquire PSBA stems from what it calls a “noticeable shift in sentiment” among Filipino Gen Zs, most of whom have expressed a preference for pursuing entrepreneurship over traditional corporate career paths.
STI says a study by HMO provider PhilCare, which is also an affiliate of STI, supports this inclination toward starting their own business. Fifty-three percent of respondents in the study from both Gen Z and millennial demographics expressed s strong preference for entrepreneurship over traditional employment.
In a separate study also by PhilCare, Gen Z respondents also said that they wanted flexible work arrangements over rigid schedules, a preference for multiple part-time positions or “gigs,” and strongly preferred independent work over collaborative environments.
“Our studies show that for many young Filipinos, entrepreneurship is not just a college course or subject, it has become a mindset,” said Jaeger Tanco, president of PhilCare and VP for investment relations of STI Holdings. “Institutions must reimagine their role in shaping the future workforce. It’s no longer enough to impart knowledge; we must also nurture this entrepreneurial spirit through hands-on experiences mentorship programs, and real-world challenges.”
History of PSBA
PSBA was founded in 1963 originally as a review and training center for certified public accountants. Its original name was Philippine Accounting and Taxation Services Training Services Inc. and was located in Claro M. Recto Avenue in Manila. Its initial enrollee count was at 1,200. At one point it was the biggest CPA review school in the Philippines.
On its third year, the school began to offer undergraduate programs in business administration with an initial enrollment of 1,518 students. It was also that year that the school changed its name to the Philippine School for Business Administration. In 1979, it began to offer an MBA program.
PSBA opened its Quezon City campus in 1981 with 1,500 students. Today over 11,000 students are enrolled in the QC school.
Meanwhile, STI Holdings currently operates 63 schools across the country, 37 of which it owns and 26 franchised. With 60 colleges and three education centers, it offers a wide array of programs from business to design.
STI’s acquisition of PSBA is still subject to regulatory approvals and final agreements, but it marks a significant expansion in the company’s education portfolio.
For the six months ending December 2023, the company reported a net income of P517.8 million, which is a 123 percent increase compared to the same period the previous year. It also reported total enrollment of passing the six-digit mark for the academic year of 2023-2024.
