Goodstart enters heads of agreement to acquire 31 Edge Early Learning centres

Goodstart Early Learning, Australia’s largest early childhood education and care provider, has entered a conditional heads of agreement to acquire, subject to due diligence, thirty one Edge Early Learning centres from administrators, Korda Mentha. 

The transaction, should it complete, will see Goodstart’s portfolio increase by around 5 per cent to 697 centres making it nearly double the size of the next largest provider in the market, G8 Education, which operates around 350 centres. 

CEO, Dr Ros Baxter said while it was early days, with due diligence just beginning on a portion of the network, she said Goodstart was open to considering opportunities which would allow the not for profit to bring its safe, high quality early learning to new communities across Australia.

“While there’s a lot more work to do, and a decision has not yet been made, as a not for profit we exist purely for children and we are always looking for ways to support children and families, particularly those who live in more vulnerable communities.”

Acquisition to boost QLD and SA networks and first since BFS purchase in 2020

Should the transaction be finalised Goodstart will acquire thirty one centres from Edge’s original seventy centre portfolio of which sixteen are located in Queensland and the balance in South Australia.

This will bring Goodstart’s overall network size in Queensland to 241 centres and 57 centres in South Australia cementing its position as the biggest provider in each state by a substantial margin. 

Notably, should the transaction be finalised the purchase of the Edge portfolio will be the organisation’s second material deal this decade with the merger with fellow not for profit, Illawarra based Big Fat Smile, which saw forty one centres join the organisation in 2020 being the first. 

Korda Mentha and ARENA REIT confirm head of agreement

The administrator of the Edge Early Learning portfolio Korda Mentha confirmed that a conditional heads of agreement had been signed for the sale of a portion of Edge’s portfolio to Goodstart and noted the ongoing due diligence work required to complete the transaction.

Edge Early Learning entered voluntary administration on 27 August 2026 after experiencing financial difficulties with their approximately seventy centres placed into the management of Korda Mentha pending a sale. 

Administrator, David Johnstone noted “We are pleased to have entered into a conditional heads of agreement with Goodstart. We are working closely with the Goodstart team as they progress due diligence.”

ARENA REIT, the landlord of twenty of the properties under consideration, also acknowledged the development and signalled that they had commenced their own processes internally ahead of potentially consenting to the lease assignments associated with the transaction. 

ACCC gives green light removing potential regulatory hurdle 

In a separate release the Australian Competition and Consumer Commission (ACCC) confirmed that they had received an application for a notification waiver in respect of the proposed acquisition. 

Large multi-site operators are obliged by law to apply for clearance from the ACCC when acquiring new business so as to ensure that the additions to the portfolio do not lessen competition in particular catchments. 

The ACCC noted that “in respect of twenty three target Edge centres, there is no geographic overlap between the target centre and any existing Goodstart centre” and with regards “the remaining 8 target centres where there was geographic overlap, Goodstart would face competition from multiple alternative providers in the local area post-Acquisition.

In addition they said, absent the acquisition, some of the target Edge centres may otherwise close, reducing or removing consumers’ access to long day care services in the relevant local areas before confirming “that material competition concerns are unlikely to arise” should the transaction complete.

To read Goodstart’s release please click here.