The Navitas Limited (ASX: NVT) share price has been among the best performers on the market today.
In morning trade the education provider's shares are up 3% to $4.51.
Why are they higher?
This morning Navitas announced that it has expanded its partnership with Wales-based Swansea University through its college the International College Wales Swansea (ICWS).
According to the release, the new agreement means the college will shift from its traditional royalty-based pathway model to a joint venture between Navitas and the University.
The joint venture, which will be known as The College, Swansea University, aims to provide a wider range of services including an expanded curriculum, a broader portfolio of pre-Masters programs, and the management of a 411 bed on-campus student accommodation facility.
Furthermore, the agreement will see the operations of ICWS transferred to the joint venture entity and be equally owned by Navitas and Swansea University.
Should you invest?
Considering the partnership is already a very profitable one, I feel its expansion can only be good news for shareholders.
But with its shares changing hands at approximately 25x trailing earnings, I'm not sure I would be in a rush to invest on the back of this news.
Whilst this is undoubtedly a good move by management, I see a lot more value in other areas of the education sector. G8 Education Ltd (ASX: GEM) and Think Childcare Ltd (ASX: TNK), for example, good be worth a closer look.
