Acquisition of PSBA to Bolster the Young Filipino Business Mindset—STI Education Systems Holdings, Inc.

STI Education Systems Holdings, Inc., owner of the largest network of private schools in the Philippines, stated that the company’s decision to acquire the Philippine School of Business Administration (PSBA) in both Quezon City and Manila, is a strategic move aimed at bolstering business and entrepreneurship education in the country.

Last Tuesday, STI Holdings informed the Philippine Stock Exchange (PSE) that a term sheet for the takeover of PSBA, which includes the 61-year-old school's operations as well as the acquisition of licenses, trademarks, trade names, and other assets related to the school, was approved by the board.

According to Monico V. Jacob, President of STI Holdings, the decision was made in reaction to a discernible shift in the attitudes of Filipino Gen Zs, who are increasingly indicating a preference for entrepreneurship over traditional corporate career paths.

"We are now seeing how the landscape of employment evolves. It makes sense that education must evolve as well. The acquisition is a significant step in this direction for the company," he said.
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The younger generation's propensity for entrepreneurship is supported by a survey done by PhilCare, a STI Holdings affiliate and leading HMO, which found that Filipino Gen Z, millennials, and Gen Xers have a strong desire to start their own businesses.

According to the PhilCare study, Filipino Gen Z members showed a high tendency towards creating their own businesses, indicating a definite preference for entrepreneurship. This was closely followed by the preference for many part-time jobs, or "gigs," a preference for autonomous work over collaborative settings, and a desire for flexible work arrangements over strict schedules.

This trend was also evident among other Filipinos, according to a different survey that PhilCare also commissioned. It showed that a significant 53% of respondents from the millennial and Gen X cohorts strongly preferred entrepreneurship over traditional employment.

Jaeger Tanco, President of PhilCare and Vice President for Investor Relations at STI Holdings, emphasized that this trend underscores the importance of the education sector adapting to meet evolving demands, with entrepreneurship offering significant potential for economic growth and job creation.

"Our studies show that for many young Filipinos, entrepreneurship is not just a college course or a subject; it has become a mindset. Institutions must reimagine their role in shaping the future workforce. It's no longer enough to impart knowledge; we must must also nurture this entrepreneurial spirit through hands-on experiences, mentorship programs, and real-world challenges," he said.

Founded in 1963, PSBA has evolved into one of the country's premier business schools, offering a range of undergraduate and graduate programs, including Accountancy, Business Administration, and specialized MBA programs.

STI Holdings owns three major institutions in the education sector: STI Education Services Group, STI West Negros University, and iACADEMY, offering a diverse array of programs from ICT to business and design.

The acquisition of PSBA by STI Holdings, subject to regulatory approvals and final agreements, marks a significant expansion in the educational portfolio of the company, aligning with its commitment to provide quality education and meet the evolving needs of the workforce.

Recent financial disclosures from STI Holdings reveal robust growth, with a net income after tax of PHP 517.8 million for the six-month period ended December 31, 2023, representing a remarkable 132% increase from the previous year.

The surge in enrollment numbers, surpassing the six-digit mark for the 2023–2024 academic year, has been a key driver of this financial success, indicating strong demand for educational offerings provided by STI Holdings.