Rainbow Education Holding Ltd. is buying Noah Education Holdings Ltd. (NYSE: NED) for $107.4 million.

Beijing-based Noah provides education services in China. The company owns and operates 48 kindergartens, and owns and operates five primary and secondary schools.

The purchase price works out to $2.85 per share in cash. The company's shares closed at $2.25 on Dec. 23, the last day of trading before a going-private proposal was announced.

Rainbow is a company controlled by Noah's directors, who own 68 percent of the company. The deal comes after several Chinese companies listed in the U.S. have decided to go private after facing increased regulatory scrutiny and some stock price declines. For more see, "Chinese Companies Embrace Privatization." 

Duff & Phelps Securities LLC provided financial advice to Noah, and Latham & Watkins acted as legal counsel. Skadden Arps Slate Meagher & Flom LLP is serving as U.S. legal adviser to the group of directors that control Gold Technologies.