
Acquisitions in the Education & EdTech Sector in 2025
Acquisitions in the Education and Edtech Sectors in 2025
The following is a summary of mergers and acquisitions transactions expected in the education and edtech sectors in 2025. This article will be updated every two weeks as we work with more clients and learn of other deals in the sector.
The education and edtech sectors experienced a slow start in 2024. Many smaller deals in 2024 fell apart during due diligence. Rising interest rates created anxiety around borrowing costs caused buyers to require a higher return on their investment and depressed valuations.
Investors were still recovering from the bad decisions they made during the COVID pandemic. Most EdTech investors have adopted a more cautious approach after making investments at inflated valuations during the COVID era. Post-COVID, many segments of the education sector have been shaken up due to increased regulation of for-profit Title IV vocational colleges and concerns about the expiration of ESSER funds.
As a result, valuations for small, medium, and large edtech companies have returned to pre-COVID levels, although they are still higher than valuations for traditional businesses. The average small and medium-sized edtech company is valued at 2x to 3x trailing twelve-month annual recurring revenue.
Reported Acquisitions in the Education and Edtech Sectors in 2025
Below is a summary of the mergers and acquisition transactions in the education and edtech sectors in 2025. This is not an exhaustive list, as many smaller transactions are never announced. This list represents the deals we have learned about through our network or that we are directly involved in, and will be updated every two weeks.
In February,
- Sparkrock, a US-based enterprise software provider, acquired School-Day, a leading payment and activity management platform for schools.
- Elsmere Education, which helps higher education institutions manage online programs, merged with HCRC to offer enrollment and retention solutions.
- Dallas-based Barbri Global, which sells bar exam preparation courses acquires legal learning company Quimbee, a platform that provides study guides for law students
- BetterLesson, a K-12 professional learning provider, acquired Always Be Learning (Abl), to enhance its support for school districts with student scheduling and programming.
In January
- Cengage Group, a US-based curriculum resource provider, acquired Visible Body, a provider of interactive 3D models and software for science education.
- Wayable, a Canadian platform specialized in support for international students, acquired Psymood, a mental health and mentorship provider targeted at international students.
- Brightchamps, a Singaporean curriculum resource provider, acquired Edjust, a provider of digital solutions for personalized education. With this acquisition, GSV Ventures-backed Brightchamps has acquired four companies, including Education10x, a financial literacy education platform for children, Schola, a live learning platform for kids, and Metamorphosis Edu, which trains students in skills linked to entrepreneurship.
Factors Driving Deal Activity
- Continued Consolidation: Expect to see continued consolidation in various segments of the edtech market. This will be driven by companies seeking to expand their product offerings, enter new markets, and achieve economies of scale. For example, companies with complementary product offerings might merge to offer more comprehensive solutions.
- Private Equity Activity: Private equity firms will remain active in the education and edtech space. These firms will be looking for companies with strong growth potential and recurring revenue models. We can also expect to see larger deals involving established players in the market, as well as smaller acquisitions of emerging startups.
- Focus on AI and Emerging Technologies: While AI presents an existential risk for some traditional online education companies, businesses that leverage artificial intelligence and other emerging technologies to improve learning outcomes will be attractive targets. This includes AI-powered tutoring platforms, adaptive learning systems, and platforms that personalize learning content.
- Continued Emphasis on K-12 and Higher Education: Deals involving K-12 learning solutions, higher education platforms, and workforce development solutions will remain prominent.
- Companies focused on the Skills Gap: Companies that provide upskilling and reskilling are becoming central to education pathways. Work-integrated learning models—internships, apprenticeships, and co-op programs—are gaining traction in the United States, aligning student education with industry needs. Vocational training has emerged as a pragmatic choice for many learners. Collaborations between traditional academic institutions and industries are creating seamless pathways from education to employment, addressing local talent shortages. Governments are incentivizing practical training, making it faster and less expensive for students to enter in-demand jobs.
Additional Factors to Consider
- Valuation Pressure: The valuation of edtech companies may continue to face pressure due to the recent market corrections and ongoing economic uncertainties. Buyers are likely to remain cautious and selective, emphasizing profitability and sustainable growth.
- Impact of ESSER Funds: The expiration of ESSER funds will likely continue to influence K-12 spending, which may impact the strategies of EdTech companies in that space.
- Impact of Byju Bankruptcy: The 2024 bankruptcy of Byju and Prosus writing off it’s investment will likely depress valuations in the edtech sector and create a flood of deals on the market.
- Impact of AI on Education. While AI presents some exciting opportunities for education, it presents an existential threat for others. See our article on the impact of AI on the Coding Bootcamp Sector.
About the Author and Jackim Woods & Co.
Rich Jackim is an education industry investment banker, education 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.