The world is getting bigger for Bright Horizons Family Solutions (BFAM -0.49%).
On Monday, Bright Horizons announced that it has purchased Dallas-based Children's Choice Learning Centers, an operator of 49 employer-sponsored child care centers, primarily in the American Southwest, but also scattered across the U.S. "in regions that match well with Bright Horizons' existing network of centers."
Explaining the purchase, Bright Horizons CEO David Lissy noted that both "organizations have admired one another for many years and have shared a commitment to excellence in employer-sponsored child care and early education and the highest-quality customer service."
Bright Horizons paid $53 million for Children's Choice, which works out to a valuation of 1.3 times the latter's $41 million in 2012 revenues. As such, the company is acquiring a sizable subsidiary for a valuation considerably below its own shares' 2.1-times sales valuation.
Regardless, Bright Horizons shares are seeing no benefit from the transaction. After rising modestly on yesterday's news, Bright Horizons shares now sell for $35.05 -- below their cost before the acquisition was announced.
