Australian childcare company Embark Education has launched a bid for rival early childcare company Mayfield Education, alarming experts who say for-profit providers that fail to meet baseline safety standards are being allowed to expand without oversight.
Embark is planning to more than double in size after announcing an off-market takeover bid for Mayfield Education last month.
If successful, Embark — which operates under brands including Appleberries, Brighthouse, Cubby Care and Roseberry — would grow the number of centres under its control from 39 to 84.
However, industry experts say the company is in no position to expand while its existing services fail to meet national quality standards.
Data from childcare authority ACECQA shows 26 per cent of Embark’s long-day care centres failed national quality standards — almost three times the for-profit industry average of 9 per cent.
“I think it’s extremely concerning that a company with such a bad record … is planning to expand dramatically,” Andrew Scott, an emeritus professor at Deakin University, said.
He said he was concerned Embark was able to act despite a wave of tighter childcare regulations introduced in July following scandals involving other childcare providers.
Mr Scott said the scandals gave rise to concerns about “companies pursuing profit ruthlessly from taxpayer subsidies at the expense of care and safety for Australian children”.
Takeover bid flagged in October
Embark, formerly known as Evolve Early Learning, made its takeover intentions clear in October when it purchased nearly 20 per cent of Mayfield’s shares.
Former Genius Childcare boss Darren Misquitta has pleaded guilty after receiving money obtained through forgery. (LinkedIn)
Stock market filings indicate the shares were bought from Darren Misquitta, the head of embattled childcare empire Genius Education.
Embark is offering 50c per share to Mayfield shareholders, who have been advised by Mayfield to take no action over the proposal yet.
A booklet detailing the offer is due to be sent to shareholders in January.
Embark has been approached for comment.
Mayfield is flailing in part because of its dealings with Mr Misquitta, who in August pleaded guilty to receiving $120,000 in suspected proceeds of crime from a business associate not associated with the childcare industry.
Steps Early Learning was poised to take over at least six Genius centres in May, but that deal appears to have fallen through.
Steps had applied for provider approval to run childcare centres as long ago as May, but still had not received it as of November 2025.
Steps did not respond to the ABC’s questions.
Experts warn against ‘complex financial web’
The Productivity Commission is calling for a national Early Childhood Education and Care Commission to provide oversight of for-profit providers following concerns about the risk of putting profit over child safety.
The New South Wales government recently ordered another childcare giant, Affinity, to stop acquiring more centres after services it runs were at the centre of safety breaches and an abuse scandal at the hands of accused educator, Joshua Brown.
But with only two of its present 39 services located in NSW, Embark is unlikely to fall under the same oversight.
Professor Scott said there “absolutely should be” closer oversight of deals like Embark’s Mayfair takeover by childcare regulators.
“There are too many gaps in these new regulations, including between state and federal responsibilities,”
he said.
“And in those gaps, this company is planning to weave yet another complex financial web to make profits.”
He said it was generally accepted there was a place for for-profit centres in the childcare system.
But he added that there was too much “excessive profiteering” and the federal minister responsible for the sector, Jason Clare, should use his powers to rebalance the system towards not-for-profits.
Jason Clare previously flagged a national register for childcare workers was needed. (ABC News: Adam Kennedy)
“What’s happened is that it has become an industrial-scale exercise in sweeping up taxpayer subsidies to make money, and care and education of children isn’t part of these companies’ agendas,” he said.
One of Embark’s New South Wales centres, Carlton House Childcare Centre and Preschool in Dubbo, came under scrutiny from the NSW regulator in 2024, according to documents released through a NSW parliamentary order.
In one incident detailed in the documents on July 16, an educator was allegedly found lying on a mat with an infant, with a child’s blanket completely covering her head.
The next day, an educator and a child were allegedly observed in a yelling match, with the child claiming the educator had “grabbed [them] on the shoulder and threw [them] on the log”.
Embark was issued a warning letter to comply with the national law.
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