Funding for EdTech Companies Hits a 10-year Low in Q1 2024
Funding for EdTech companies is down 90% from the 2021 high and is down 50% from this time last year, according to a study published by HolonIQ.
In addition, Q1 2024 saw a significant decline in demand in the core and ‘nice to have’ EdTech categories.
Overall, EdTech startups are cutting their headcount (shrinking), and global VC funding continues to wane, driven in part by high interest rates and cost of capital, as well as a lack of confidence in growth projections over the next 3-5 years.
The EdTech sector is in a holding pattern as investors try to understand the impact that AI will have on their product and service offerings. At the same time, many leading established EdTech companies are experiencing strong organic growth in international education, education finance, ‘brick and mortar’ schools, and K12 market segments. This makes it much more difficult for a startup to compete and gain market share.
Financial investors and strategic buyers look at VC funding rates as a leading indicator of trends in M&A valuations. As a result, we expect that the valuation multiples for EdTech companies will decline over the next 12 months.
About the Author and Jackim Woods & Co
Rich Jackim is an attorney, investment banker, and entrepreneur. For the last 25 years, Rich has been providing boutique investment banking services to small and middle-market companies in over 30 industries.
In addition to running a successful M&A advisory firm, Rich founded a successful training and certification company called the Exit Planning Institute, which he sold to a private family office in 2012.
Rich is also the author of the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses. It became an Amazon best-seller in the business consulting category the year it was published.
If you own an education or EdTech business and are interested in exploring your options, I would welcome an opportunity to speak with you. There is no cost or obligation to you and all discussions are completely confidential.
Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.
Read MoreAn Innovative Approach to Business Brokerage and M&A Fees
Working with a business broker or M&A advisor can significantly enhance your results when selling your business. At our firm, we recognize the distinct needs of each client and offer an innovative alternative to the conventional business broker fee structure. In addition to the traditional full-service commission or success-fee model, Jackim Woods & Co provides clients with the option to engage us as consultants and pay on an hourly basis, offering a more personalized approach tailored to your requirements.
Our innovative hourly billing option allows you to access our expert services as needed, ensuring you only pay for the specific assistance you need, resulting in significant cost savings. Regardless of the fee model chosen, we are committed to providing exceptional services and outcomes aligned with your unique objectives.
Deciding Between Fee Structures
Success-Fee Basis
PROS:
- Aligned Interests: Our fee is contingent upon the successful sale, aligning our interests with yours and motivating us to get the highest price for you.
- Minimal Upfront Costs: With only a small retainer upfront, you can minimize initial expenses.
- Confidence in Broker’s Ability: Our willingness to work on a success-fee basis reflects our confidence our ability to sell your business.
- Risk Mitigation: If the deal falls through, you incur no financial obligation other than the initial retainer, thereby reducing your financial risk.
CONS:
- Higher Overall Cost: The success fee, a percentage of the sale price, will usually result in higher costs compared to hourly billing.
- Focus on Larger Deals: Brokers may prioritize larger deals due to their compensation being tied to deal size.
- Possible Rush to Close: There’s a risk of prioritizing closing the deal over negotiating optimal terms for you.
Hourly Basis
PROS:
- Cost Control: Hourly billing offers predictability and manageability, especially for smaller transactions or prolonged processes, ensuring you pay only for the services you need.
- Flexibility: You can tailor our services to your needs, from brief consultations to having us run a comprehensive sell-side process for you.
- Objective Advice: Our fee structure ensures impartial advice focused on your best interests rather than simply closing the deal.
- Transparency: Transparent billing simplifies expense tracking and comprehension.
CONS:
- Upfront and Ongoing Costs: The hourly fee is due whether the deal closes or not, so the cost to you may be higher than the initial retainer under the success fee based approach.
- Less Incentive to Close Quickly: Because we are solely focused on providing you with impartial, objective advice, it could potentially prolonging the process.
Case Study
Recently, we assisted the owner of a medium-sized court reporting firm in California. With a business valued at $1M, she sought our expertise in navigating a sale. She had already been approached by several buyers, so she just needed our help determining what her firm was worth, analyzing each buyer’s offer, providing assistance in negotiations and counterproposals, and help responding to the buyer’s due diligence requests. Since she didn’t need us to run a full sell-side process, the consulting model was ideal for her. Typically, brokers charge an 8-10% success fee, translating to $80,000 in this case. Opting for our hourly consulting model, she saved a substantial amount. With 40 hours of consulting time spent, including valuation, negotiation, and due diligence assistance, her total fee amounted to $15,800, saving her $64,200 compared to the traditional business broker commission model.
Conclusion
Recognizing the uniqueness of each client’s needs, we offer both traditional commission and consulting fee models. Whether engaged using a success-fee arrangement or hourly billing, our commitment remains steadfast to providing top-tier service tailored to your objectives.
About the Author and Jackim Woods & Co
Rich Jackim is an attorney, investment banker, and entrepreneur. For the last 25 years, Rich has been providing boutique investment banking services to small and middle-market companies in over 30 industries.
In addition to running a successful M&A advisory firm, Rich founded a successful training and certification company called the Exit Planning Institute, which he sold to a private family office in 2012.
Rich is also the author of the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses. It became an Amazon best-seller in the business consulting category the year it was published.
If you own a business and are interested in exploring your options, I would welcome an opportunity to speak with you. There is no cost or obligation to you and all discussions are completely confidential.
Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.
Read MoreAcquisitions in the Legal & Litigation Support Services Sector
This article provides a summary of mergers and acquisitions transactions in the Legal Services Support Sector between 2018 and 2024. We try to update this post every month as we close more deals and learn of other deals that have closed in the sector.
An Overview of the Litigation and Legal Services Support Sector
The Litigation Support Services or Legal Services Support sectors encompass a diverse range of companies providing specialized assistance to legal professionals and organizations. Some of the key types of companies within these sectors include:
Court Reporting Firms: These companies provide skilled court reporters to create verbatim records of legal proceedings, depositions, and hearings.
Litigation Support Providers: These firms offer a wide range of services to assist with litigation, including eDiscovery, document management, trial preparation, and case management.
Legal Technology Companies: These companies develop and provide software solutions tailored to the needs of legal professionals, such as case management software, document review platforms, and legal research tools.
Legal Research and Publishing Companies: These entities produce and distribute legal research materials, including case law, statutes, regulations, and legal commentary.
Legal Consulting Firms: These firms offer strategic advice and consulting services to law firms, corporate legal departments, and other legal entities on various aspects of legal practice, including practice management, technology adoption, business development, trial preparation, jury selection, etc.
Videography Services: These companies specialize in recording video and audio records of legal proceedings, depositions, and interviews and converting them into written transcripts.
Forensic Accounting and Investigation Firms: These firms provide financial and investigative services to support litigation, including forensic accounting, fraud investigation, asset tracing, and expert witness testimony.
Legal Staffing and Recruitment Agencies: These firms specialize in placing legal professionals, including attorneys, paralegals, legal secretaries, and support staff, with law firms, corporate legal departments, and government agencies.
Legal Process Outsourcing (LPO) Companies: These organizations offer outsourced legal services to law firms and corporations, including document review, contract drafting, intellectual property management, and legal research. This subsector is going through rapid change as artificial intelligence solutions become more integrated in their offerings.
Court Technology and Services Providers: These companies develop and implement technology solutions for courtrooms and legal proceedings, such as electronic filing systems, court management software, and audiovisual equipment for trials and hearings.
Mediation and Arbitration Services: These organizations facilitate alternative dispute resolution processes, including mediation and arbitration, to help parties resolve legal disputes outside of traditional litigation.
Legal Education and Training Providers: These entities offer continuing legal education (CLE) programs, professional development courses, and training seminars for legal professionals to enhance their skills and knowledge in various areas of law and practice.
Legal and Litigation Support Services Consolidation
The legal and litigation support sector is experiencing a long-term consolidation by several large national players and about a dozen smaller regional companies.
Here is a summary of the factors driving this long-term consolidation.
- Professional Shortage: There’s a notable shortage of skilled court reporters, partly due to an aging workforce and fewer new entrants in the field. Larger firms, through consolidation, can better manage this talent crunch by pooling resources and offering more attractive career paths.
- Technological Advancements: The court reporting industry, like many others, is rapidly evolving due to technology. Advancements in digital recording, real-time transcription, and even AI-powered transcription services are reshaping the landscape. Firms are consolidating to better invest in and leverage these technologies. It’s a bit like the tech trends we see in other sectors, where staying ahead of the curve is crucial.
- Increasing Demand for Legal Services: There’s a growing demand for legal services, partly due to increased regulatory complexities and a more litigious society. This demand extends to court reporting services, which are essential for legal proceedings. Larger firms, through consolidation, can handle a higher volume of work more efficiently.
- Economies of Scale: By consolidating, court reporting firms can achieve economies of scale. This means they can offer services at a lower cost while improving quality. It’s a classic business move – think of it like big tech firms merging to streamline their operations and cut down on expenses.
- Market Fragmentation: The court reporting industry is pretty fragmented, with many small players. This fragmentation makes it ripe for consolidation, as larger firms can acquire smaller ones to expand their market share and client base.
- Diversification of Services: The large national court reporting firms are diversifying their services to include things like legal videography, translation, litigation consulting, eDiscovery, and document management services. By consolidating, firms can offer a broader range of services to their clients, making them a one-stop shop for legal support services.
- Client Expectations: Clients are increasingly expecting more comprehensive and sophisticated services. Larger, consolidated firms are often better equipped to meet these expectations with their broader range of services and technological capabilities.
Due to these long-term factors, we anticipate this consolidation to continue for the foreseeable future.
Mergers and Acquisitions in the Litigation Support Industry
The following section outlines a comprehensive summary of mergers and acquisitions transactions within the legal and litigation support services sector spanning the period from 2018 to 2024. This curated list is updated on a monthly basis to reflect the latest developments and transitions within the industry.
Buyer | Seller | Date | Subsector |
U.S. Legal Support Inc. | Wendy Ward Roberts & Associates | 4/30/2024 | Court Reporting |
Magna Legal Services | Jones & Fuller Court Reporting | 2/21/2024 | Court Reporting |
Array | Alliance Imaging, LLC | 2/6/2024 | eDiscovery, Data Management |
Veritext | Dianne Jones & Associates | 1/31/2024 | Court Reporting |
Complete Legal | Frontline Managed Service’s eDiscovery unit | 1/23/2024 | eDiscovery, Data Management |
Magna Legal Services | Zanaras Reporting & Video | 12/7/2023 | Court Reporting |
Osano | WireWheel | 12/5/2023 | Compliance solutions |
Cristina and Jerry Coash Jr. | Coash Court Reporting & Video | 11/30/2023 | Court Reporting |
Lexitas | Evolution Process Service | 11/21/2023 | Process server |
Exterro | Divebell | 11/1/2023 | eDiscovery |
Wolters Kluwer | MFAS | 10/31/2023 | Tax Content |
Veritext Legal Solutions | Metropolitan Court Reporters | 10/14/2023 | Court Reporting |
Veritext Legal Solutions | Wasileski Court Reporting | 9/28/2023 | Court Reporting |
Lexitas | Esquire Assist | 9/26/2023 | Corporate Filing/Registered Agent |
Lexitas | AAAgent Services | 9/26/2023 | Corporate Filing/Registered Agent |
Veritext Legal Solutions | Atchison & Denman | 9/14/2023 | Court Reporting |
U.S. Legal Support | TrialEx Legal Graphics & Trail Consulting | 8/21/2023 | Litigation Consulting |
Veritext Legal Solutions | M&M Court Reporting | 6/25/2023 | Court Reporting |
U.S. Legal Support Inc. | Summit Court Reporting | 6/23/2023 | Court Reporting |
Lexitas | Imagine Reporting | 6/20/2023 | Court Reporting |
Veritext Legal Solutions | Litigation Services | 4/28/2023 | Court Reporting |
Veritext Legal Solutions | Augusta Scribes | 4/6/2023 | Court Reporting |
Lexitas | Elite-Brentwood Reporting | 3/21/2023 | Court Reporting |
Puget Sound Reporting | actively seeking acquisitions | 3/16/2023 | Court Reporting |
Lexitas | Enright Court Reporting | 3/7/2023 | Court Reporting |
Veritext Legal Solutions | Garcia McCall Court Reporters | 3/3/2023 | Court Reporting |
Veritext Legal Solutions | Bridges Court Reporting | 2/1/2023 | Court Reporting |
Lexitas | Kusar Court Reporters | 1/31/2023 | Court Reporting |
Lexitas | HIQ | 1/17/2023 | UCC & Lien Search |
Lexitas | TRAC | 1/17/2023 | Corporate Filing/Registered Agent |
Array | Compass Reporting | 12/31/2022 | Court Reporting |
Lexitas | TaylorMorse Record Retrieval | 12/21/2022 | Data management |
Veritext Legal Solutions | Mainland Reporting | 12/20/2022 | Court Reporting |
Veritext Legal Solutions | Hart Reporting | 12/16/2022 | Court Reporting |
Lexitas | AdvancedONE | 11/30/2022 | Court Reporting |
Lexitas | Depo International | 11/8/2022 | Court Reporting |
Lexitas | Oasis Reporting Services | 10/19/2022 | Court Reporting |
Magna Legal Services | Barkley Court Reporters | 10/12/2022 | Court Reporting |
Lexitas | Grove & Associates | 10/4/2022 | Court Reporting |
Lexitas | Allstate Corporate Services | 9/23/2022 | Corporate Filing/Registered Agent |
Stewart Richardson Deposition Services | Seidel & Sasse Court Reporters | 9/19/2022 | Court Reporting |
Veritext Legal Solutions | Parise & Associates | 9/9/2022 | Court Reporting |
Veritext Legal Solutions | Anthem Reporting | 9/9/2022 | Court Reporting |
Veritext Legal Solutions | Paul Baca | 9/9/2022 | Court Reporting |
LITIGATION SERVICES (Veritext) | Central Court Reporting & Video | 8/22/2022 | Court Reporting |
Lexitas | Phipps Reporting | 7/19/2022 | Court Reporting |
Esquire Deposition Solutions | TSG Reporting, Inc. | 7/13/2022 | Court Reporting |
Veritext Legal Solutions | Doris Wong | 6/23/2022 | Court Reporting |
Veritext Legal Solutions | Advanced Reporting Solutions | 6/13/2022 | Court Reporting |
Lexitas | Yorkson Legal Staffing | 6/1/2022 | Court Reporting |
Veritext Legal Solutions | Associated Reporting & Video | 5/16/2022 | Court Reporting |
Veritext Legal Solutions | Richards Court Reporting | 4/4/2022 | Court Reporting |
Veritext Legal Solutions | Musetta & Associates | 3/28/2022 | Court Reporting |
Veritext Legal Solutions | Cady Reporting | 3/28/2022 | Court Reporting |
U.S. Legal Support | Baton Rouge Court Reporters | 3/21/2022 | Court Reporting |
Veritext Legal Solutions | Court Reporters of Louisiana | 3/21/2022 | Court Reporting |
Empire Technologies Risk Management | L2 Services | 8-Mar-22 | Digital Scanning |
Lexitas | Strehlow Court Reporting | 2/22/2022 | Court Reporting |
LITIGATION SERVICES (Veritext) | Merit Court Reporting | 12/27/2021 | Court Reporting |
Esquire | Willette Court Reporting | 7/13/2021 | Court Reporting |
Veritext Legal Solutions | Brown & Jones Reporting | 6/2/2021 | Court Reporting |
Brooks Court Reporting, Inc. | Cleeton Davis Court Reporters | 5/1/2021 | Court Reporting |
LITIGATION SERVICES (Veritext) | Verbatim Reporting Service | 1/14/2020 | Court Reporting |
U.S. Legal Support | DecisionQuest Trial Consulting | 10/1/2019 | Litigation Consulting |
U.S. Legal Support | Litivate Reporting & Trial Services | 9/10/2019 | Court Reporting |
Regal Court Reporting | Kelli Norden and Associates (KNA) | 6/11/2019 | Court Reporting |
LITIGATION SERVICES (Veritext) | Kim Thayer & Associates | 6/3/2019 | Court Reporting |
U.S. Legal Support | Hunter + Geist, Inc. | 5/1/2019 | Court Reporting |
Veritext Legal Solutions | Epiq | 3/27/2019 | Court Reporting |
Huseby | Discovery Litigation Services | 3/12/2019 | Court Reporting |
LITIGATION SERVICES (Veritext) | Superior Court Reporting | 9/5/2018 | Court Reporting |
LITIGATION SERVICES (Veritext) | Keleher’s | 7/3/2018 | Court Reporting |
LITIGATION SERVICES (Veritext) | Cameo Reporting | 5/30/2018 | Court Reporting |
In addition to the publicly announced transactions mentioned above, we estimated that several dozen additional transactions have taken place involving smaller litigation and legal support service companies, which were acquired either by local competitors or individual investors. These smaller transactions, are often not formally announced through press releases, but contribute greatly to the dynamic landscape of industry consolidation.
Other Relevant Articles:
Readers may also benefit from exploring our supplementary articles pertaining to litigation and legal support services, offering valuable insights and resources on related topics.
Court Reporting & Litigation Support Industry is Ripe for Consolidation
What’s My Court Reporting Firm Worth? – Simple Rules of Thumb updated for 2023
Jackim Woods’ Court Reporting Practice Group
About the Author and Jackim Woods & Co.
Rich Jackim is an attorney, investment banker, and entrepreneur. For the last 25 years, Rich has been providing boutique investment banking services to small and middle-market companies in the court reporting and litigation support sector.
In addition to running a successful M&A advisory firm, Rich founded a successful training and certification company called the Exit Planning Institute, which he sold to a private family office in 2012.
Rich is also the author of the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses. It became an Amazon best-seller in the business consulting category the year it was published.
Jackim Woods & Co offers skilled mergers and acquisitions advisory services to court reporting firms, digital reporting and videography firms, court reporting schools, eDiscovery companies, and legal contract staffing companies in both sell-side and buy-side transactions. Jackim Woods & Co has arranged over 100 successful transactions, ranging in value from less than one million to more than eighty million dollars.
If you own an court reporting firm, legal support services business, or litigation support company and are interested in exploring your options, I would welcome an opportunity to speak with you. There is no cost or obligation to you and all discussions are completely confidential.
Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.
Read MoreHow To Guide to Selling Your Court Reporting Firm for Top Dollar
I’m pleased to announce that I just published a free 17-page guide to Selling your Court Reporting Firm for Top Dollar. This comprehensive guide provides a lot of useful information as you begin to think about selling your court reporting firm, so I thought it would be helpful to provide an outline of the topics covered.
The Ultimate Guide to Selling Your Court Reporting Firm for Top Dollar
Introduction
- Overview of the complexities and rewards of selling a court reporting firm.
- Importance of understanding the sale process and strategizing your exit for a profitable transition.
Understanding the Value of Your Court Reporting Firm
- Critical first step: Determine your firm’s fair market value.
- Unique and valuable aspects of your business in the marketplace.
- Importance of working with an experienced business broker in the court reporting sector.
Key Non-Financial Factors Affecting Firm Value
- Client Base:
- A diverse and loyal client base as a primary asset and value driver.
- Contractors/Reporters:
- The significance of the experience and tenure of court reporters or contractors.
- Technology:
- Adoption of cutting-edge technologies as a value enhancer.
- Administrative Staff:
- The expertise and experience of administrative staff in maintaining service quality.
Valuation Rules of Thumb
- The role of EBITDA and SDE in business valuation.
- Importance of accounting for unique value drivers and detractors for accurate valuation.
The Sales Process
- Steps and timeline for selling a court reporting firm.
- Importance of preparation for a smooth and successful sale.
Preparing Your Firm for Sale
- Financial statement organization and operational process documentation.
- Emphasizing the necessity of up-to-date accounting and efficient operational processes.
Marketing Your Court Reporting Firm
- The need for creating a compelling offering package and contacting potential buyers.
- Utilizing digital marketing and leveraging the expertise of business brokers.
The Role of Professional Advisors
- Advantages of working with a business broker specialized in court reporting firms.
- Mitigating risks such as low-ball offers, due diligence failures, and distractions during the sales process.
Navigating Negotiations
- Understanding buyer motivations and maintaining flexibility.
- The importance of negotiating with multiple buyers simultaneously to secure the best deal.
Choosing the Right Buyer
- Balancing financial offers with cultural and operational fit.
- Evaluating different types of buyers: big box firms, regional firms, and individual entrepreneurs.
The Closing Process
- Steps involved in closing the sale, including due diligence and finalizing financial terms.
- The significance of definitive legal documents at closing.
Embracing the Future Post-Sale
- The emotional and practical aspects of life after selling your business.
- Opportunities for new ventures and personal growth.
Conclusion
- Summarizing the journey of selling a court reporting firm.
- Encouragement to contact a professional advisor for guidance and valuation.
Download Your Copy Here
Download your free copy of this useful white paper here.
About the Author and Jackim Woods & Co.
Rich Jackim is an attorney, investment banker, and entrepreneur. For the last 25 years, Rich has been providing boutique investment banking services to small and middle-market companies in the court reporting and litigation support sector.
In addition to running a successful M&A advisory firm, Rich founded a successful training and certification company called the Exit Planning Institute, which he sold to a private family office in 2012.
Rich is also the author of the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses. It became an Amazon best-seller in the business consulting category the year it was published.
Jackim Woods & Co offers skilled mergers and acquisitions advisory services to court reporting firms, digital reporting and videography firms, court reporting schools, eDiscovery companies, and legal contract staffing companies in both sell-side and buy-side transactions. Jackim Woods & Co has arranged over 100 successful transactions, ranging in value from less than one million to more than eighty million dollars.
If you own an court reporting firm or litigation support company and are interested in exploring your options, I would welcome an opportunity to speak with you. There is no cost or obligation to you and all discussions are completely confidential.
Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.
Read MoreAcquisitions in the Education and Edtech Sectors in 2024
Acquisitions in the Education and EdTech Sector in 2024
The following is a summary of mergers and acquisitions transactions in the education and edtech sectors in 2024. We will update this post every two weeks as we close more deals and learn of other deals in the sector.
The education and edtech sectors have been off to a slow start in 2024. This is following a significant drop in valuations in 2022 and 2023 as edtech companies no longer benefited from the COVID boost in 2022, and many were no longer profitable in 2023.
For many in the industry, 2023 was a tumultuous year. Numerous deals were close to closing but fell apart during due diligence. Interest rates continued to rise, inducing anxiety around the cost of borrowing and requiring buyers to assume a higher overall return on investments, which depressed valuations. At the same time, investors had to rethink their investment criteria, which had shifted as a result of bad decisions they made during the frenzy of the COVID pandemic, and many taking a much more cautious and conservative approach after making investments at inflated valuations in 2020 and 21 that made sense during COVID, but now appear indefensible. Entire segments of the education sector were shaken up – from the increased regulation on for-profit Title IV colleges and regulations that effectively put OPM providers “on life support” to concerns about the implications surrounding the expiration of ESSER funds and the effect that will have on preK-12 education.
That said, valuations for small, medium, and large edtech companies are back to their pre-COVID levels and are still significantly higher than valuations for traditional businesses, with the average small and medium-sized edtech companies being valued at 2x to 3x trailing twelve-months revenue.
Acquisitions in the education and edtech sectors in 2024
Below is a summary of the mergers and acquisition transactions in the education and edtech sectors so far in 2024. This is by no means an exhaustive list as many smaller transactions are never announced. This list only represents the deals we have learned about through our network or that we have been directly involved in. I’ll do my best to update the list every two weeks.
In April, Basis Vectors Capital, a private equity firm focused on vertical SaaS, acquired Cadient Talent, a talent acquisition solutions provider in the hourly hiring sector , to expand their portfolio of SaaS solutions and to expand Cadient’s growth. The terms were not disclosed.
Follet School Solutions acquired MasterLibrary, a K-12 solutions provider. The amount was not disclosed.
Wonderschool acquired ChildcareMatters, a substitute teacher staffing platform. The amount was not disclosed.
LEORON Institute, a corporate training EdTech company, acquired UAE-based XpertLearning, the leading professional training and development provider in the Middle East, to expand their market expansion in the region.
GenSpark, a tech training and development solutions provider, acquired ProGrad, an Indian end-to-end sourcing, screening, and training solutions provider, to broaden their service offerings in the APAC and Indian markets.
Kangarootime, a childcare management software provider for early education centers, acquired Clay, an AI-powered lesson planner. The terms were not disclosed.
Keystone Partners, a career transition and outplacement services provider, acquired CEC, which offers certification and training for coaching careers. The amount wasn’t disclosed.
Viking Mergers & Acquisitions, a business brokerage firm, acquired Sea School, a maritime licensing and education provider.
CareerArc, a hiring and recruiting company, acquired Lumina, a leading SaaS platform for generating visual job postings at scale. The amount wasn’t disclosed.
Wakelet, a content curation platform, acquired Bulb, a digital portfolio provider used primarily by teachers and job applicants, for an undisclosed amount.
IXL Learning, creator of adaptive online learning systems, as well as the owner of Rosetta Stone, acquired Dictionary.com for an undisclosed amount.
Wonderschool, a startup that provides software and support to help individuals and local governments spin up childcare businesses, has acquired EarlyDay, which operates an early childhood educator marketplace. The terms of the transaction were not disclosed.
In March, the children’s publisher Scholastic acquired 9 Story Media, a children’s content producer and distributor, for a reported $186 million.
StraighterLine, an online course provider, acquired ProSolutions Training, an early childhood education training provider, for an undisclosed amount.
The online learning platform Skillshare completed its acquisition of Superpeer. The acquisition will expand Skillshare’s on-demand course offerings. The terms of the deal were not disclosed.
Accenture acquired Udacity, one of the pioneers of large-scale online courses. The terms of the deal were not disclosed, but it was announced at the same time Accenture announced a $1 billion investment to create a new learning platform focused on AI, called LearnVantage. Accenture reportedly paid only $80 million for Udacity, which back in 2012 had raised over $300 million in venture capital investments.
Leeds Equity Partners acquired TouchMath, a K-8 math curriculum provider.
Wayside Publishing, a U.S.-based language learning solutions provider, acquired Nualang, which develops tools for world language classrooms. The transaction details were not disclosed.
Kido International, an international daycare and preschool design, technology and learning company, acquired Amelio Early Education, a preschool and daycare operator. The amount was not disclosed, but is estimated to be north of $7.5 million.
Ellucian acquired EduNav, an academic planning and student success tool platform, for an undisclosed amount.
HMH acquired Writable, which provides a K-12 writing assessment and practice solution.
In February, Cognia, a forward thinking nonprofit organization laser-focused on improving educational opportunities for all learners, has agreed to purchase CenterPoint Education Solutions, a nonprofit organization that specializes in building cohesive education systems consisting of high-quality curriculum, aligned assessments, and expert professional learning.
Podium Education, a career accelerator platform that partners with colleges to offer for-credit learning experiences to help students gain in-demand skills and work experience as part of their degree, acquired Untapped, a career opportunities software company, for an undisclosed amount.
Savvas, a K-12 solutions company, acquired Outlier.org, which offers online dual credit courses. The amount was not disclosed.
The National Association for Community College Entrepreneurship acquired SkillPointe, a skill-based career platform, for an undisclosed amount.
Avenue Growth Partners acquired a minority stake in BridgeCare, an infrastructure platform for early childhood education, for $10 million.
Google acquired Edlyft, an AI tutoring platform, for an undisclosed amount.
In January, Oliver Solutions, a digital training platform, acquired Spiffy for an undisclosed amount.
Instructure Holdings, Inc. (Instructure) (NYSE: INST), the leading learning ecosystem and maker of Canvas, announced today it has completed the acquisition of Parchment, the world’s largest credential management platform and network.
Avathon Capital acquired Magical Beginnings, a network of early childhood learning centers in Massachusetts, for an undisclosed amount.
Google acquired Edlyft AI Tutor, an AI-powered STEM upskilling platform that seeks to make computer science education more accessible, especially for Black students.
Quantum5, an automotive training platform acquired Trivie, an AI-powered provider of a workforce engagement platform that personalizes learning content.
Avathon Capital, a private equity firm, acquired Magical Beginnings Learning Centers, a Massachusetts-based network of early childhood education centers.
ETS, the language testing company that runs TOEFL, acquired PSI, a U.S.-based language testing company. The amount was not disclosed.
Follet School Solutions, a K-12 edtech company, acquired Livingtree, a platform for fundraising management, for an undisclosed amount.
PowerSchool acquired Allovue, a K-12 financial planning, budgeting and analytics software provider, for an undisclosed amount.
Intelvio, a healthcare education company backed by Eden Capital, acquired Classward, an online provider of continuing education for aspiring and current EMS professionals. Classward’s EMS content complements Intelvio’s growing platform focused on solving healthcare employee shortages across the US.
Upgrad Education announced that it is in negotiations to acquire Udacity. It also stated that it intends to raise $100 million, a large part of which will be used to finance the purchase, according to media reports.
We will update this post every two weeks as we learn about other transactions and close more deals in the education sector.
Read our previous article for information about mergers and acquisitions deals in the education sector in 2003 or our previous article about mergers and acquisitions deals in the education and edtech sectors that closed in 2002.
About the Author and Jackim Woods & Co.
Rich Jackim is an education industry investment banker, educational industry entrepreneur, and former mergers and acquisitions attorney.
For the last 25 years, Rich has been providing boutique investment banking services to middle-market companies in the education sector.
Rich also founded a successful training and certification company called the Exit Planning Institute, which he sold to a private equity group in 2012.
Rich is also the author of the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses.
Jackim Woods & Co offers skilled mergers and acquisitions advisory services to privately owned schools, colleges, and EdTech companies in both sell-side and buy-side transactions. Jackim Woods & Co has arranged over 100 successful transactions, ranging from less than one million to more than eighty million dollars in value.
If you own an education-related business and are interested in exploring your options, I would welcome an opportunity to speak with you. Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.
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