by Rich JackimJune 30, 2025 EdTech, Education & Training, Education Industry, M&A News, The M&A Process, Using a Professional0 comments

The Skills Gap Crisis: Why Small Colleges Must Act Now or Risk Obsolescence

The Enrollment Cliff Is Here—And It’s Accelerating

Small colleges across America are facing an existential crisis. Enrollment at institutions with fewer than 2,000 students has plummeted by an average of 35% since 2010, with some schools losing more than half their student body. The reasons are stark: declining birth rates, soaring tuition costs, and perhaps most critically, a fundamental shift in how students and employers view the value of traditional liberal arts education.

But here’s the uncomfortable truth that most college presidents and board members are reluctant to acknowledge: students aren’t just leaving because college is expensive—they’re leaving because traditional degrees no longer guarantee career outcomes.

In 2024, 94% of students said they wanted micro-credentials and industry certifications to count toward their degrees, up from just 55% the year before. Meanwhile, 85% of employers now say they’re more likely to hire candidates with specific vocational credentials than those with only traditional liberal arts degrees. The message is clear: the market has spoken, and it’s demanding skills-based education.

For small colleges still operating under the old playbook, this represents an adapt-or-die moment. But for those willing to act strategically, it also represents the greatest growth opportunity in higher education today.

The Liberal Arts Paradox: Essential Skills, Unemployable Graduates

Don’t misunderstand—the core value proposition of liberal arts education remains powerful. Critical thinking, communication, analytical reasoning, and cultural literacy are more important than ever in our complex global economy. The problem isn’t that these skills are worthless; it’s that they’ve become invisible to employers who lack the time or framework to recognize them.

When a hiring manager sees a resume with a philosophy degree, they don’t automatically think “excellent analytical thinker who can solve complex problems.” They think “unemployable idealist who can’t contribute to the bottom line.” This perception gap has created a vicious cycle: students avoid liberal arts programs because they fear unemployment, employers continue to overlook liberal arts graduates because they see so few of them, and colleges respond by desperately trying to make their programs more “practical”, often in superficial ways that satisfy no one.

The solution isn’t to abandon liberal arts education. It’s to combine it with immediately recognizable, market-validated credentials that make those essential liberal arts skills visible and valuable to employers.

The Vocational Micro-Credentials Revolution: A $1.9 Billion Opportunity

The vocational micro-credentials market is exploding, projected to reach $1.9 billion by 2029. But this isn’t just about digital badges or online certificates, it’s about a fundamental restructuring of how education creates value.

Here’s what’s driving this transformation:

Students want stackable credentials that prove they have job-ready skills. Students are no longer willing to commit four years and six figures to a degree that might not lead to a career of their choice. They want to see career progress year by year, with credentials they can use immediately while building toward a full degree, and ultimately, lots of career options.

Employers are willing to pay for skills-based training. Companies now spend billions of dollars a year on workforce development, and they’re increasingly eager to partner with educational institutions that can deliver job-ready skills at scale.

Credit recognition is becoming universal. More than 30 professional certificates now carry formal credit recommendations from accreditation bodies, making them truly stackable toward traditional liberal arts degrees.

For small colleges, this represents a massive opportunity—but only if they act quickly and strategically.

The Acquisition Imperative: Why Organic Growth Isn’t Enough

Most small colleges are approaching the skills gap crisis through partnerships with platforms like Coursera or by adding a few “practical” courses to their existing curriculum. This is “too little, too late” and will prove fatal for many institutions.

Platform partnerships sound appealing because they require minimal upfront investment, but they’re actually a trap. When students enroll in a Google certificate through Coursera, Google gets the brand recognition and career outcome credit, not your college. You become a facilitator in someone else’s ecosystem, competing on price rather than value, with no control over the student experience or employer relationships.

Organic program development is equally problematic. Small colleges lack industry connections, employer relationships, and specialized faculty needed to create truly job-relevant programs. By the time you’ve developed new curricula, hired qualified instructors, and built employer partnerships, market demand will have shifted to new skills.

The optimal strategy is to acquire an established for-profit vocational school.

The Strategic Acquisition Model: Liberal Arts + Vocational Training

The most successful higher education institutions of the next decade will be those that combine the depth and breadth of liberal arts education with the immediate market relevance of vocational training. This isn’t about creating a “vocational track” within your existing college, it’s about acquiring an established vocational college and integrating it strategically.

Here’s why acquisition makes sense:

Immediate Market Access

For-profit vocational schools already have employer relationships, industry partnerships, and job placement networks that take traditional colleges years to develop. When you acquire a vocational school, you’re not just buying facilities and equipment, you’re buying market access.

Proven Revenue Models

Successful vocational schools operate on fundamentally different economics than traditional colleges. They charge premium prices for in-demand programs, maintain high job placement rates, and often have waiting lists for enrollment. This cash flow can stabilize your institution while you integrate programs.

Complementary Student Populations

Vocational schools serve students who might never consider traditional four-year programs—working adults, career changers, first-generation college students. By combining liberal arts and vocational programs, you can serve both populations while creating pathways between them.

Stackable Credential Architecture

The most powerful integration model allows students to earn industry credentials as they progress through liberal arts programs, or to add liberal arts depth to vocational training. A traditional biology major could graduate with a Bachelor of Science degree and a certificate in diagnostic medical sonography. A traditional business major could graduate with a Bachelor’s in Business and technical certifications in cybersecurity. Think of the career opportunities these kinds of students have over traditional students.

Case Study: Successful Liberal Arts + Vocational Integration

Hilbert College, a small, private, non-profit Catholic college, recently acquired Valley College, a for-profit vocational school with campuses in Ohio and West Virginia. This move allows Hilbert to expand its online offerings and potentially increase enrollment by tapping into Valley College’s existing student base. It also allows liberal arts students to graduate with certificates or diplomas as practical nurses, medical clinical assistants, veterinary assistants, or veterinary technicians. It also enabled Hilbert to offer over a dozen online vocational programs in business, cybersecurity, healthcare, and IT to students in 49 states, greatly expanding Hilbert’s traditional reach, At the same time, the merger allows Valley College’s vocational school students to continue their education by earning an Associates or Bachelor’s degree at Hilbert with programs in over 50 different subject areas.

The Integration Playbook: Making the Marriage Work

Acquiring a vocational school is only the first step. Success requires thoughtful integration that preserves the strengths of both institutions while creating new value. Based on our experience advising higher education M&A transactions, here are the critical success factors:

Preserve Distinct Brand Identities Initially

Don’t rush to rebrand everything under one umbrella. Vocational schools often have strong employer relationships built around their specific brand and reputation. Maintain these relationships while gradually introducing the liberal arts value proposition.

Create Clear Pathways, Not Forced Integration

Students should be able to move between programs naturally, but don’t force artificial combinations. A welding student might benefit from business communication training but probably doesn’t need art history. Focus on complementary skills that enhance career outcomes.

Leverage Cross-Faculty Collaboration

Your liberal arts faculty can provide valuable perspective on critical thinking, communication, and ethics to vocational programs. Meanwhile, vocational instructors can ground theoretical liberal arts concepts in real-world applications.

Maintain Employer Relationships as Strategic Assets

The vocational school’s employer partnerships are among your most valuable acquired assets. Nurture these relationships and gradually introduce the expanded capabilities of your combined institution.

Financial Modeling: The Economics of Educational Transformation

Map of Private Non-profit College Closures

The financial case for strategic acquisition is compelling, but it requires sophisticated modeling that accounts for multiple revenue streams and integration costs. Key considerations include:

Revenue Synergies: Combined institutions can command premium pricing for integrated programs, serve broader student populations, and access new funding sources including employer partnerships and workforce development grants.

Cost Efficiencies: Shared administrative functions, facilities optimization, and combined marketing can reduce per-student costs significantly.

Risk Mitigation: Diversified revenue streams reduce dependence on traditional enrollment, providing stability during demographic transitions.

Growth Capital: Improved cash flow from vocational programs can fund expansion of liberal arts offerings or acquisition of additional specialized schools.

Contact our team for a confidential consultation regarding detailed financial modeling for your institution’s specific situation.

Case Study: A Student’s Portfolio

One of Jackim Woods & Co’s clients, a very successful, fast growing vocational school in Pennsylvania, is a model for colleges of the future. This for-profit, degree granting institution has 17 programs leading to Associates degrees. As a student move through their two year program, they complete their general education classes and vocational classes at the same time. As they learn job-ready skills they earn certifications that go into the student’s portfolio, or “brag book” as the students call it. Here’s how it works. A student studying in one of the school’s allied healthcare programs might earn a third-party certificate in CPR and basic life support, then a certificate in phlebotomy, then a certificate in healthcare terminology, and then a certificate in electric healthcare record keeping. When they graduate, each student’s brag book will contain their diploma, an official transcript, and a dozen or more skill-based certificates. Students have a 90%+ placement rate upon graduation. The school has a board of local employers who help them decide which certificates are important to include in each program. The cost of these tests and certificates are built into the school’s tuition so there is no extra cost to students. This creates a seamless connection between the school, student, and employer needs.

The Competitive Landscape: First-Mover Advantages

The window for strategic acquisition of quality vocational schools is narrowing rapidly. As more traditional colleges recognize this opportunity, competition for the best targets will intensify, driving up valuations and reducing availability.

Early movers have significant advantages:

Better acquisition targets are available now at reasonable valuations
Less competition for quality vocational schools
More time to execute integration before market pressures intensify
Stronger market positioning as education evolves

Colleges that wait will find themselves choosing from less attractive targets at higher prices, or worse, competing directly with institutions that have already completed successful integrations.

Beyond Survival: Building Tomorrow’s Educational Powerhouses

This isn’t just about saving colleges, it’s about building the educational institutions that will dominate the next generation of higher education. The colleges that combine liberal arts depth with vocational relevance will enjoy:

Premium pricing power for differentiated offerings
Diverse revenue streams, reducing enrollment risk
Strong employer relationships driving job placement and reputation
Broader student appeal across demographic and economic segments
Strategic flexibility to adapt to changing market demands

The question isn’t whether higher education will evolve—it’s whether your institution will lead that evolution or be left behind.

The Path Forward: Strategic Planning for Educational Transformation

College presidents and board members who recognize the urgency of this moment have a clear path forward:

Assess your current position honestly, including enrollment trends, financial stability, and competitive positioning
Identify strategic acquisition targets that complement your liberal arts mission while providing immediate market relevance
Develop integration planning that preserves institutional strengths while creating new value
Secure stakeholder buy-in from faculty, alumni, and community partners
Execute with experienced guidance to ensure a successful transaction and integration
Engage an Expert M&A Advisor to help you objectively assess and address each of these points.

The institutions that act decisively now will not survive—they will thrive for decades to come.

Take Action: Your Institution’s Future Depends on It

The data is clear, the trends are accelerating, and the window to take action is narrowing. Small colleges that fail to adapt to the skills-based education revolution will continue to lose students, struggle with finances, and ultimately face closure.

But those willing to act boldly have an unprecedented opportunity to transform their institutions into thriving, market-relevant educational powerhouses that serve students, employers, and communities better than ever before.

At Jackim Woods & Co., we’ve helped dozens of higher education institutions navigate strategic transformations through carefully planned mergers and acquisitions. As one of the most active and creative financial and M&A advisors to higher education institutions, we understand both the urgency of your situation and the opportunities available to forward-thinking leaders.

Rich Jackim 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 created the Certified Exit Planning Advisor (CEPA) designation and the executive MBA-style CEPA training program.

Rich is also the author of the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses, as well as dozens of articles on mergers and acquisitions, business valuation, and exit planning.

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.

Congratulations to the Class of 2025!

As graduation ceremonies wrap up across the country, we’re thrilled to celebrate the Class of 2025. Whether you’re receiving a high school diploma, college degree, or professional certification, this milestone represents years of hard work and dedication. Congratulations on this incredible achievement!

A Special Thank You to Our Education Community

We especially want to recognize the educators, administrators, and education business leaders who made these successes possible. Your commitment to student achievement and innovation in learning has shaped this generation of graduates. From teachers and professors to EdTech entrepreneurs and institutional leaders, thank you for your unwavering dedication to educational excellence.

The education sector continues to evolve, creating new opportunities for learning and growth. Your work doesn’t just educate students; it builds the foundation for our future workforce and leaders, and changes lives for the better.

Our Commitment to Education

At Jackim Woods & Co., we’re proud to have specialized in the education sector for over 15 years. We understand the unique challenges and opportunities facing educational institutions and education-focused businesses today. Whether you’re exploring strategic partnerships, planning for growth, or considering transition opportunities, our team brings deep sector expertise to support your goals.

To the Class of 2025: Congratulations and best wishes for your bright futures ahead!

To our education clients and contacts: thank you for making a difference every day.

Rich Jackim 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.

by Rich JackimApril 21, 2025 Buy-Side Engagements, Education & Training, Education Industry0 comments

Strategic Buyer Seeks Commercial Truck Driving Schools

Jackim Woods & Co. is conducting a buy-side search for our client, a large 100% employee-owned (ESOP) training company based in Arizona.

Our client is actively seeking to acquire one or more commercial truck driving or CDL schools in the following states:

Arizona
Florida
Minnesota
Nevada
New Mexico
North Carolina
Ohio
Pennsylvania
Texas
Wisconsin
Other states will also be considered

Ideal Target Profile:

$2,500,000+ in annual revenue
Strong reputation in the local market
Not reliant on federal funding sources
Established training programs with strong student outcomes

Why Consider This Buyer:

Large, financially stable organization with a strong balance sheet
Able to close quickly with no bank debt
100% employee-owned (ESOP) provides a fantastic opportunity for your employees to participate in the success of your business when you sell
Committed to preserving the legacy of acquired schools
Ability to provide additional resources and growth opportunities

Our client is prepared to pay a premium for well-run truck driving schools that align with their acquisition criteria.

Referral Fees Available: We are happy to pay referral fees for introductions that result in successful transactions.

Our client is paying our fee, so there is no cost or obligation to you. For confidential discussions regarding this opportunity, please contact:

Rich Jackim
Jackim Woods & Co.
rjackim@jackimwoods.com

Connect with us today to explore how this opportunity might be the ideal exit strategy for your trucking school or a perfect fit for someone in your network.

by Rich JackimJanuary 24, 2025 Education & Training, Education Industry, M&A News, The M&A Process, Uncategorized0 comments

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 acquisitions 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 October,

Learning Pool, a UK-based digital learning provider, acquired WorkRamp to strengthen its presence and market reach in the United States.
K12 Coalition, a US-based educator support solutions provider, acquired Keys to Literacy and Professional Development Institute to drive positive student outcomes.
OWNA, an Australian childcare management platform, acquired Juice Technologies to expand its offerings in the early childcare space.
Imagine Learning, the largest national provider of digital-first curriculum solutions, acquired EarlyBird, a dyslexia screener and early literacy assessment tool for students in PreK–Grade 3.

In September,

Ignite Reading, a virtual tutoring program, acquired Esteam to enhance its services and provide better support for students struggling with reading.
QGenda, a healthcare workforce management company, announced the acquisition of New Innovations, the industry’s largest provider of residency management software. New Innovations’ specialized software is used by hospitals and health systems to manage all aspects of their physician graduate medical education programs. This acquisition expands QGenda’s existing healthcare workforce management solution to include the management of the resident and fellow training lifecycle, including onboarding, evaluations, scheduling and value-based reimbursement strategies.

In August,

Sycamore, a US-based school management software company, acquired TuitionEP, a payment solution provider for schools, creating a unified academic, communication, and payment system under one solution.
Bett and GSV Summit, two major education technology events, announced their merger to form the largest and most influential education innovation community worldwide.
Greenn, a Brazilian payment platform, has acquired Xgrow, an authoring tool for online learning programs, expanding Green’s reach to include 4M students and to become one of the 4 largest digital education platforms in Brazil.
Year13, an Australian career prep service provider, has acquired Student Edge, a student assistance platform, to support its expansion in the US.

In July,

TALi Digital Ltd, a digital health company, has announced the acquisition of You Can Do It! Education (YCDI!), a social-emotional learning program, for $1.34 million. The deal includes an upfront payment of $1.14 million and $200,000 in installments over 24 months.
Learnbeat, a Dutch learning platform provider, has acquired Anywyse for its AI technology to provide more personalized learning opportunities.
Dukes Education, a UK-based group of schools, acquired Mandoulides Schools to expand into the Greek market.
Thrive, a UK-based AI-powered online learning platform, acquired Guider, an online mentoring and coaching business.
Harvest Partners, a US private equity company, acquired The Learning Experience, to expand their operations into Early Childhood Education.
F-code Inc., a Japanese company, has acquired DEITORA, to focus on digital skills education.
THI Investments, a UK-based investment firm, has acquired Empowering Learning Group to drive expansion for both its training and staff service in the UK and internationally.
Hudl, a Lincoln-based company, has acquired both Titan Sports and Balltime to expand its performance tracking and AI analytics capabilities for athletes at all levels, from high schools to professional teams.

In June,

Unikum has acquired ed tech company StudyBee, which provides modular assessment and insights products integrated with Google Classroom.
O2B Early Education acquires two North Dakota Bright Futures Learning Centers.
Wolters Kluwer Health, a global provider of information services and solutions, has acquired IntelliLearn, an Australian company that offers online course solutions for nursing schools.
Brave Bison, a UK-based digital media company, has acquired MiniMBA, marking its entry into the professional training and EdTech space.

In May,

Colegium, a Chilean learning platform, acquired preschool edtech, KidsBook, to expand its coverage in the early education segment.
IXL Learning, a US-based EdTech firm, acquired MyTutor to boost AI lesson planning, adaptive exams, and progress tracking.
IMG Academy acquires college recruiting service SportsRecruits.

In March,

Pryor Learning, LLC acquired PeopleKeys, Inc. to expand Pryor’s capabilities to offer market-leading DISC assessments and benchmarking analytics as part of its training and learning curriculum.
Niche, a Canadian K-12 and college discovery platform, has acquired Goodkind, a startup that helps colleges and schools connect with prospective students.

In February,

Commercial Services Group, a UK-based logistics firm, acquired WF Education Group to build marketshare across the UK and France.
The Riverside Company, a US investment firm, acquired Wall Street Prep (WSP), a financial training provider, to expand its market share in financial training services.
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.

by Rich JackimJanuary 10, 2025 EdTech, Education & Training, Education Industry, M&A News0 comments

The Future of Coding Bootcamps: How AI is Reshaping the Market

For years, coding bootcamps were seen as a golden ticket into the tech industry. They offered a quick path to marketable skills and lucrative careers. More than 100 of these programs popped up across the U.S., touted as a “no-frills alternative” to traditional college degrees. However, the landscape is shifting dramatically, and the rise of artificial intelligence (AI) is forcing a fundamental reassessment of the bootcamp model.

The AI Disruption

The primary challenge facing coding bootcamps stems from the way AI is altering the tech job market itself. Tech companies are increasingly leveraging AI tools to automate tasks that were previously handled by entry-level human coders. This has led to what industry insiders now describe as “GPT monkey” roles – positions where employees primarily handle minor tasks while relying on ChatGPT, Gemini, and other AI tools for complex software writing.

This shift has created multiple headwinds for coding bootcamp providers:

Changing Employer Needs: Employers are now seeking candidates with specialized tech skills, particularly in AI and machine learning, rather than general entry-level coding abilities.

AI as an Education Provider and Bootcamp Competitor: Generative AI tools have proven to be excellent tutors and learning tools. Many individuals consider them more accessible and a much lower-cost pathway to acquire basic coding skills, making the traditional bootcamp model less appealing.

Reduced Entry-Level Demand: The automation of basic coding tasks using AI has significantly reduced the demand for entry-level tech employees, directly impacting the primary market that bootcamps serve.

2U’s Market Exit: A Telling Case Study

The struggles of 2U, a major player in the bootcamp market, is a perfect illustration of these headwinds. In 2019 2U acquired Trilogy Education for $750 million. Trilogy is an education company that helps set up and run short-term coding programs at university extension schools. Over the next several years, 2U partnered with 50 colleges and universities to set up and run their coding bootcamps. However, in December 2024, 2U made what industry observers called a “bombshell announcement” to exit the bootcamp sector entirely. It’s important to note that they didn’t sell their bootcamp business – they simply shut it down. This suggests their $750 million investment held little or no market value.

This decision followed a stark 23.3% revenue decline in 2U’s Alternative Credential Segment, driven largely by a 40% drop in bootcamp enrollment. As noted by education sector investment banker, Rich Jackim, the business line “was not worth selling, due to either a lack of buyer interest, or a realization that the market value that could be realized in a sale would not be worth the cost and effort to sell it, or possibly both.”

Instead of selling, 2U will write off their $750 million investment in Trilogy and pivot to offering other kinds of microcredentials through edX.org, which it bought for $800 million in 2021.

The same situation has occurred to dozens of smaller coding bootcamps across the country, including CodeUp in Austin, TX, that was forced to close in January 2024 because enrollment slowed to the point where it could no longer cover its operating costs. This highly respected bootcamp was forced to close in the middle of an investment banking process to sell the business.

The Reality on the Ground

The challenges extend beyond just market dynamics. A telling example comes from an EdSurge podcast hosted by Jeff Young that interviewed, Tim Lum, a returning adult student who attempted the bootcamp route in Honolulu. His experience highlighted common issues with the model: chaotic classroom environments due to widely varying skill levels among students, and the reality that many students essentially teach themselves using the bootcamp’s curriculum. Lum ultimately decided that a traditional computer science degree was necessary to achieve his career goals, enrolling in a community college before transferring to a four-year university.

Market Implications and Future Opportunities

For boot camp owners and potential buyers, these developments have profound implications:

Reduced Business Value: Traditional bootcamp businesses face significant downward pressure on valuations.

Fewer Buyers: The lower enrollment numbers and existential risk from AI has already resulted in fewer buyers willing to enter the coding bootcamp sector.

Lower Value for Students: The value proposition for students is weakening as AI tools provide alternative learning paths and entry-level coding positions become more automated.

Evolution Required: Success in the coding bootcamp sector will require owners to make significant changes in the traditional bootcamp model.

However, opportunities exist for bootcamps that are willing to evolve:

Specialized Training: Programs focusing on advanced skills in AI, machine learning, cybersecurity, and emerging technologies that are hard to automate could find sustainable market niches.

Microcredential Integration: Developing shorter, more focused programs that complement rather than replace traditional education. This could include programs that result in an industry recognized credential or certification, rather than a certificate of completion.

Industry Partnerships: Closer integration with universities or tech companies could help create more valuable and recognized credentials.

Conclusion

The impact of AI on coding bootcamps marks a significant inflection point in the tech education market. While the traditional bootcamp model faces existential challenges, the underlying need for tech education remains strong – it’s the nature of that education that’s changing. For investors and bootcamp owners, success will require carefully analyzing these market shifts and adapting to a landscape where specialized skills and AI literacy increasingly dominate the value proposition.

The days of coding bootcamps as a quick alternative to traditional education may be waning, but opportunities remain for those that are willing to evolve their offerings to meet the changing needs of employers and students.

If you are interested in our other articles about coding bootcamps, please read Coding Bootcamp Acquisitions: 2014 to 2022.

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.

by Rich JackimDecember 9, 2024 Buying a Business, Education Industry, Exit Planning, Seller Articles, Selling a Business, The M&A Process, Using a Professional, Valuation-0 comments

Expert M&A Advisors: Flexible Solutions for Complex Transactions

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Timeline management and coordination

Expert Transaction Guidance and Negotiation Support

Leverage our extensive transaction experience to optimize your outcomes. Our advisors provide:

Market intelligence on current terms and conditions
Strategic negotiation support
Term sheet and LOI guidance
Deal structure optimization
Purchase agreement consultation

Our Expert Team

Our firm brings together a diverse team of M&A professionals, each contributing specialized expertise to your transaction. Our team includes:

Investment Bankers with decades of deal experience across various industries
Financial Analysts who excel at modeling, valuation, and detailed financial analysis
Project Managers who ensure smooth process execution and milestone achievement

Every team member is carefully selected for their transaction expertise and commitment to client success. This combination of skills ensures you receive comprehensive, professional support throughout your M&A journey.

Cost-Effective Advisory Services

Our innovative hourly consulting model represents a significant departure from traditional M&A advisory fee structures. By eliminating the standard success fee that most investment banks and M&A advisors charge, we can deliver substantial cost savings to our clients while providing the same high-quality expertise and service.

Significant Cost Savings

Traditional M&A advisory fees typically include a substantial success fee ranging from 1% to 5% or more of the transaction value. For mid-market transactions, this can translate to fees between $100,000 and $500,000 or more. Our hourly model eliminates these success fees, potentially saving clients hundreds of thousands of dollars while still maintaining access to top-tier advisory services.

Fee Component	Retainer & Success Fee	Hourly Approach
Non-refundable Retainer	$20,000	$5,000
Success Fee	$300,000	$0
Professional Hours	250	250
Average Hourly Rate	$0	$400
Total Advisory Fees	$320,000	$105,000

Flexible Engagement Model

Our hourly consulting approach allows you to access senior-level expertise without committing to a full-service engagement. This approach provides:

Cost-effective access to expert guidance
Flexibility to scale services up or down as needed
Ability to supplement internal resources strategically
Professional support throughout the transaction lifecycle

Senior-Level Expertise

Every engagement is staffed with experienced M&A professionals who bring:

Decades of transaction experience
Deep industry knowledge
Proven negotiation expertise
Strategic insight and practical guidance

Client-Centric Approach

We focus on delivering value through:

Tailored solutions for your specific needs
Direct access to senior advisors
Clear, actionable guidance
Efficient resource utilization
Avoidance of any conflict of interest that is possible when a success fee is involved

To see if an hourly consulting or success fee engagement is best for you, please read our related article about the pros and cons of each approach.

Partner with Experienced M&A Advisors

In today’s complex M&A environment, having the right advisor can make the difference between a good deal and a great one. Our hourly consulting services provide the flexibility and expertise you need to navigate your transaction successfully while potentially saving hundreds of thousands in traditional success fees.

About the Author and Jackim Woods & Co

Rich Jackim is an attorney, investment banker, and entrepreneur. For the last 30 years, Rich and his team have 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.

by Rich JackimNovember 6, 2024 Buy-Side Engagements, Buying a Business, Education & Training, Education Industry, Selling a Business0 comments

Well-Funded Buyer Seeks Title IV Vocational College

Our client is a well-funded teaching dental clinic that provides a 1- and 2-year dental residency program for dentists and a training program for Dental Assistants.

They have grown organically over the years and now have multiple locations, but they are now looking to accelerate its growth by acquiring a Title IV college so students can participate in the Federally Guaranteed Student Loan Program.

ACQUISITION CRITERIA:

> Post-Secondary Educational Institution that participates in the Title-IV Student Loan Program.
> Certificate & diploma programs less than two years in duration
> Allied Healthcare, Dental Assisting/Hygienist, and Nursing programs are of great interest, but all programs will be considered

ACCREDITATION:

> ABHES or ACCSC preferred (but other accreditors will be considered)

LEGAL/REGULATORY:

> Clean regulatory record with no outstanding issues with U.S. DOE or the school’s accreditor
> No past or current litigation or outstanding claims

FINANCIAL PERFORMANCE:

> Annual revenue between $200,000 and $5 million
> Profitable operations preferred (will also consider schools that are losing money or at break-even)

LOCATION:

> OH, PA, IN, MI, KY, WV (but other locations will be considered as well)

BENEFITS OF SELLING:

> Motivated strategic buyer (accredited by the Joint Commission, AAAHC and CODA)
> A strong balance sheet with ready access to capital
> Proven growth strategy
> Career opportunities for you and your employees

NEXT STEPS:

Contact Rich Jackim at Jackim Woods & Co. (rjackim@jackimwoods.com or 847-682-4997) to learn more and determine if partnering with us would help you meet your personal and business goals.

by Rich JackimApril 15, 2024 EdTech, Education & Training, Education Industry, Valuation-0 comments

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.

Update: In June 2024, investment giant Prosus wrote off its $2.1 billion investment in Byju, saying that it thinks it is currently worthless, though officials also say they hope the value of Byju can be restored.

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.

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.

by Rich JackimJanuary 17, 2024 Buying a Business, EdTech, Education & Training, Education Industry, Seller Articles, Selling a Business, The M&A Process0 comments

Acquisitions in the Education and Edtech Sectors 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 work with more clients 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 require a higher overall return on their investment, which depressed valuations.

At the same time, investors had to rethink their investment criteria due to a rash of bad decisions they made during the frenzy of the COVID pandemic. Since then, most Edtech investors opted to take a much more cautious and conservative approach after making investments at inflated valuations in 2020 and 2021 that might have made sense during COVID, but now appear ridiculous in hindsight. Post-COVID, entire segments of the education sector have been 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.

As a result, 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. The average small and medium-sized edtech company is valued at 2x to 3x trailing twelve-month annual recurring 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 November,

H.I.G. Capital and Thoma Bravo signed a definitive agreement to acquire CompTIA Brand and Products. CompTIA is the world’s largest and most well known information technology (IT) certification and training organization focused on promoting industry growth and skills development across the global IT ecosystem and its millions of professionals.

KidsKonnect, a Netherlands-based early-years organization, has acquired NoodleNow, a UB-based teacher training provider for early childhood education, to expand into the UK.

Vitality, a UK-based behavioral health platform, has acquired WellSpark, a US-based coaching provider, to integrate its tools into existing health plans.

In October,

EQT AB, a Swedish investment firm, acquired international schools operator, Nord Anglia Education, for $14.5 billion, making it one of the largest Education deals in since the pandemic. Nord Anglia Education operates over 80 schools in 33 countries and educates more than 85,000 students a year.

ILAC Education Group acquired the US-based UniApplyNow, a university admission platform, to strengthen its North American higher education platform customer base. The terms were not disclosed.

Trainocate, an IT education company, acquired EnterOne, an advanced technology training and services provider, to expand Trainocate’s global presence.

Boathouse Capital’s portfolio company, Guidewell Education, acquired College Matchpoint to expand college admissions support for students nationwide.

OffSec, a US-based cybersecurity training provider, was acquired by Leeds Equity Partners.

In September,

Novakid, a provider of online English language lessons for K-12 students, acquired Lingumi, a U.K.-based English learning app.

The online university, Western Governors University, acquired Craft Education, an education technology company that specializes in apprenticeship programs.

Savvas Learning Company, K-12 learning solutions provider, acquired Pointful Education, a provider of online career and technical education courses.

A Swiss media-centric investment firm, CosmoBlue Media, acquired Macademia, a gamified education provider for children.

TouchMath, a US-based K12 math education provider, has acquired Classworks, a K12 math EdTech firm, to expand its product offerings.

In August,

Roper Technologies agreed to acquire Transact Campus, a higher ed payment and ID company, for $1.5 billion.

IT company Climb Global Solutions acquired Douglas Stewart Software & Services, an SaaS solutions company focused on education, for $20.3 million.

In July,

Neuberger Berman, a U.S. asset manager, is close to acquiring a minority stake in Nord Anglia Education, an international network of schools. Insiders report that the Neuberger Berman will invest $15 billion in the deal. That would be the largest K-12 deal in years.

IXL Learning, the company that owns Rosetta Stone and Dictionary.com, acquired Carson Dellosa Education, a teaching supplies publisher. The amount was not disclosed.

Instructure, the public company that makes the Canvas learning management system that is used by many schools and colleges, will be taken private by the large private equity group, KKR in a transaction worth $4.8 billion. That’s the single largest edtech deal in years. At the same time, Instructure acquired student records management platform Scribbles.

School safety software company Raptor Technologies acquired payments and ticketing provider PayK12.

Intelvio, a healthcare education company backed by Eden Capital, acquired the Professional Crisis Management Association (PCMA). PCMA is a crisis management training and certification company based in Sunrise, Florida. The acquisition enhances Intelvio’s existing behavioral health offerings and expands the Company’s overall healthcare training platform.

Edwin Group, the UK’s largest provider of supply teachers, what we in the U.S. call “substitute teachers” was acquired by Quad Partners, a U.S. based private equity firm, highlighting the potential growth of solutions to address global teacher shortages.

The animation studio Hobbes was acquired by Duolingo, the very popular language learning app. No terms were disclosed.

The Indian edtech giant Byju filed for bankruptcy protection. The company will likely sell off its operating divisions and edtech products. This flood of deals on the market is likely to depress valuation of edtech companies for the next 12 months.

EdPower, a LMS provider in the U.S. was acquired by Prometric, a US-based testing and assessment provider. The terms were not disclosed.

Genius Teacher, an Indian EdTech that provides content for primary school teachers was acquired by Schoolnet, a US K12 management system.

In June,

The College of Court Reporting, an Indiana-based nationally accredited, degree-granting court reporting college was acquired by a strategic buyer that owns and operates several other vocational colleges. Jackim Woods represented the seller and arranged the transaction.

Instructure, (NYSE: INST) a Utah-based learning management software company, acquired Scribbles Software, a North Carolina-based company that provides software solutions for K-12 school districts, to bolster it’s K12 offering. The terms of the transaction were not disclosed.

TicTac Group, a Swedish company providing e-learning solutions, acquired Skillhabit, a Swedish AI-driven learning platform.

PepTalkHer, a New York-based coaching platform, acquired Mettacool, a Wisconsin-based E-learning and coaching platform. The terms of the transaction were not disclosed.

Raptor Technologies, a Texas-based provider of school safety software, acquired PAYK12, an Indiana-based cloud-based education finance management company.

Children’s publisher Scholastic acquired 9 Story Media Group, which produces children’s content for $182 million.

Digital curriculum company Imagine Learning has acquired CueThink, a platform that uses artificial intelligence tools to improve students’ critical thinking in math instruction.

While not an acquisition, there is an interesting update on Byju. Investment giant Prosus says that wrote off its $2.1 billion investment in Byju’s stating they now believe its 9.6% investment in the company is worthless. This will certainly have a chilling effect on valuations in the edtech sector.

ClearCompany, a provider of human capital management software, owned by Gemspring Capital, acquired Brainier Solutions Inc. (“Brainier”), a leading provider of innovative learning management software for corporate clients. The terms of the deal were not disclosed.

In May,

PowerSchool, a K-12 software company, announced that it may go private in a $6 billion deal with Bain Capital, according to press reports. The deal is pending. We will update the details once the deal is finalized. This is likely to be the largest edtech deal to date.

Follett School Solutions acquired MasterLibrary, maker of a facility management platform. The terms were not disclosed. MasterLibrary allows districts to manage facility scheduling, work orders, fees, rentals, and reservations, as well as access, edit, and customize floor plan drawings.

Class Over, a K-12 online course provider, is being merged with Battery Future Acquisition in a $135 million deal.

Domoscio, a French adaptive learning platform, was acquired by Rise Up, a French active learning platform, to expand its offerings in the space.

Tustawi, a digital education platform in Kenya, was purchased by Castnet Learning, an online education platform. This acquisition will allow Castnet to expand its service offerings to Kenya.

95 Percent Group, a literacy curriculum provider in the US, acquired Sortegories, a language learning app for K12 students. This acquisition will expand 95 Percent Group’s digital offerings for language learning.

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.

The tech training and development solutions provider, GenSpark, 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.

The content curation platform, Wakelet, 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.

The U.S.-based language learning solutions provider, Wayside Publishing, , 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,

Communications and attendance software provider SchoolStatus acquired SchoolNow, a 25-year-old company that offers K-12 districts a website, app, and social media management platform.

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.

CentralReach, publisher of autism software for special education teachers and caregivers, purchased New Jersey-based social and emotional learning software provider SILAS.

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, 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.

by Rich JackimJuly 19, 2023 EdTech, Education & Training, Education Industry, M&A News0 comments

Acquisitions in the Education and EdTech Sector in 2023

The following is a summary of mergers and acquisitions transactions in the education and edtech sectors in 2023. We try to update this post every week as we close more deals and learn of other deals that have closed in the sector.

The education and edtech sectors have seen a marked slowdown in activity so far in 2023. This is following a significant drop in valuations in 2022 as edtech companies no longer benefited from the COVID boost. That said, valuations for small, medium, and large edtech companies are back to their normal 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 approximately 3X trailing twelve-months revenue.

Acquisitions in the education and edtech sectors in 2023 so far

Below is a summary of the mergers and acquisition transactions in the education and edtech sectors so far in 2023. This list is updated every two weeks.

In December, Curriculum Associates, which sells research-based print and online instructional materials, assessments, and data management tools, acquired SoapBox Labs, an AI speech recognition company.

Carnegie, a New Heritage Capital backed company that provides innovative marketing and enrollment solutions in higher education, acquired Fire Engine Red, a student search service for college and university admissions offices.

ACI Learning acquired Infosec Learning, a company that provides colleges, universities, businesses, and governments with high-speed, intuitive virtual labs and cyber ranges for hands-on, personalized learning and skill assessment. The amount was undisclosed.

ParentSquare, which makes a tool to engage school families and communities, acquired Remind, which runs a secure communication platform for schools.

Allen Career Institute acquired Doubtnut, which makes a learning app that helps students solve math and science problems by taking photos of them, for $10 million. Doubtnut, which had raised over $52 million, was at one point valued at close to $150 million.

In November, Byju announced that it is in talks to sell Epic, its digital reading platform based in the U.S., for $400 million. The potential buyer was not disclosed.

Academic Partnerships has agreed to acquire Wiley’s online program management (OPM) division for approximately $110 million.

DaySmart, a business management company, acquired Sawyer, a business management company focused on the K-12 extracurricular activities market. The amount was not disclosed.

Flywire, a Boston-based software and payments company, acquired StudyLink, a student admissions company in Australia, for an undisclosed amount.

GMB Architecture and Engineering acquired Up and Up, a marketing firm focused on higher ed, for an undisclosed amount.

Enrollify, which offers professional development programs for higher ed marketing professionals, was acquired by Element451, a higher ed student engagement platform.

DaySmart, a business management software company, acquired Sawyer, which provides scheduling and payment solutions for K-12 extracurricular activities. The purchase price was not disclosed.

In October, Instructure, the edtech company that developed Canvas, a web-based learning management system, and MasteryConnect, an assessment management system, agreed to acquire Parchment, a digital credential company, for $835 million.

Rise In, a Web3 education platform, acquired the Web3 edtech company BlockBeam.

BibliU, a London, UK-based EdTech company, acquired Texas Book Company, a Texas-based industry leader in delivering learning materials to higher education institutions across the U.S.

Accelerate Learning, which produces STEM curriculum, acquired Kide Science, an online library of play and story-based lesson plans and professional development materials for kindergarten through 3rd grade teachers.

Discovery Education, a K-12 digital curriculum and learning services provider backed by Clearlake Capital, acquired DreamBox Learning, a provider of online software for math and reading education, for an undisclosed amount.

The Malvern School, a chain of early childhood education centers, was acquired by Busy Bees, an international early childcare provider that’s expanding in North America.

Ellucian, a leading provider of school management solutions, announced that it will acquire Tribal Group plc, a UK-based services and software provider.

In September, Meazure Learning, a test developer, acquired Examity, a leading online exam proctoring service, for an undisclosed amount.

A Chicago-based private equity firm, Golden Vision Capital Americas, acquired the educational software company Hawkes Learning for an undisclosed amount. Hawkes created the first adaptive learning educational software with embedded expert systems – the precursor to AI. Their comprehensive suite of innovative course materials encompasses a wide range of subjects, including Mathematics, English, Science, Statistics, Business, and Humanities.

Babbel, a language learning platform, acquired the browser extension Toucan to further expand its learning ecosystem with a browser extension. The amount was not disclosed.

FullBloom, a provider of special education instruction and interventions, acquired a counseling support company, EmpowerU, for an undisclosed amount.

QuantaSing, the Beijing-based learning and development provider, acquired Kelly’s Education, a Hong Kong-based online learning platform. The amount wasn’t disclosed.

In August, Presence, a K-12 teletherapy company, acquired RemoteHQ’s software platform for an undisclosed amount.

Clearlake Capital-backed Discovery Education, a K-12 digital curriculum and learning services provider, agreed to purchase Dreambox Learning, an edtech provider of online software for math and reading education.

SchoolStatus, a K-12 communications company, acquired the school engagement platform ClassTag. The amount wasn’t disclosed.

Noodle, a higher ed enrollment and infrastructure growth company, acquired Meteor, a higher ed-focused upskilling company, for an undisclosed amount.

Ascent, an outcomes-based leading and student success company, acquired the professional development platform Ampersand for an undisclosed amount.

Sallie Mae, the student lender, acquired “key assets” of Scholly, a scholarship search app, for an undisclosed amount.

Student data validation software provider Level Data acquired GlimpseK12, a curriculum measurement tool. The purchase price was not disclosed.

Kahoot, the publicly traded company that developed the popular online quiz tool was acquired by Goldman Sachs’ Private Equity for $1.2 billion in an all-cash deal.

In July, Edtech giant PowerSchool announced that it plans to acquire SchoolMessenger, which offers a range of voice, text, and online tools to help K-12 schools notify parents and students, for approximately $300 million.

Newsela, a K-12 content platform, acquired the instruction and assessment platform Formative for an undisclosed amount.

In June, Axcel Learning, an education acquisition business with financial backing from Alpine Investors, acquired ExitCertified, an online training company focused on upskilling and reskilling individuals, teams, and organizations.

In May, Learning technology company HMH acquired research and educational services organization NWEA. The combined organization will harness the collective power of instruction and research-based insights to support educators in their efforts to drive better outcomes for students.

Learneo, the company that owns CliffNotes, Course Hero, and Quillbot, acquired Barnes & Noble Digital Student Solutions for $20 million.

The learning management system, Go1 acquired the book summarizing subscription service Blinkist.

The University of Idaho announced last week that it intends to acquire the giant for-profit University of Phoenix, with 85,000 students, for $550 million.

Specialized Education Services, a K-12 services provider, acquired Illinois-based special education school NewHope Academy for an undisclosed amount.

Five Arrows, the alternative assets arm of Rothschild & Co., purchased n2y, a provider of comprehensive, technology-powered solutions for students with unique learning challenges, from The Riverside Company, a private investor.

In April, Raptor Technologies, a K-12 school safety software provider, acquired SchoolPass, a cloud-based solutions provider. The amount was not disclosed.

In March, Renaissance, a preK–12 education technology provider, acquired GL Education, a provider of formative assessments for schools.

Class Technologies Inc., a virtual software provider, acquired CoSo Cloud, a digital learning company, for an undisclosed amount.

Five Arrows, the alternative assets arm of Rothschild & Co, has acquired n2y, a provider of education technology solutions for students with learning challenges.

Docebo, a corporate training and learning platform with AI capabilities, has acquired PeerBoard, a knowledge-sharing platform.

Brightwheel, an all-in-one early education platform, has acquired Experience Early Learning, a research-based early education curriculum provider.

Excolere Equity Partners acquired a controlling interest in EPS School Specialty, a leading developer of curriculum products and services that enhance literacy and math skills for K-12th grade students, particularly those who are two-plus years behind grade level.

Parchment, based in the US, acquired the higher-ed platform Quottly for an undisclosed amount.

Voxy, based in Great Britain, acquired language-learning startup Fluentify for an undisclosed amount.

Carnegie, a leading provider of innovative marketing and enrollment solutions in higher education, has completed two acquisitions. In January of this year, Carnegie acquired the National Small College Enrollment Conference (NSCEC), the leading conference dedicated to serving the needs of small colleges. And secondly, in March, Carnegie acquired CLARUS Corporation, a leading provider of digital marketing solutions for community and technical colleges.

Teaching Channel, a provider of online teacher education, has merged with Learners Edge and Insight ADVANCE. The terms were not disclosed.

Highlights for Children, publisher of a magazine for kids and other media, acquired Tinkergarten, which provides play-based outdoor learning experiences to children six months to 8 years old.

UWorld, which provides learning tools to help students prepare for high-stakes tests, has acquired Wiley’s Efficient Learning test prep portfolio.

Vasil Jaiani, a data management company executive, has acquired two interactive educational websites, Visual Fractions and Worksheet Genius.

XL Learning, a provider of a learning resources platform for K-12 students, acquired Teachers Pay Teachers, a marketplace for teachers to sell lesson materials to each other.

Savvas Learning Company acquired Whooo’s Reading, a gamified reading platform driven by AI, for an undisclosed amount.

In March 2023, Lindenwood Education System, the non-profit parent entity of Lindenwood University, completed its acquisition of Dorsey College, a nationally accredited institution that provides career-focused education in the healthcare, skilled trades, culinary arts, emergency medical services, and beauty and wellness fields.

Atairos, an investment company, agreed to acquire LifeLabs Learning, an edtech platform that provides upskilling programs for managers.

Bain Capital Double Impact, LP acquired Meteor Education, LLC, from Saw Mill Capital Partners. Meteor is the leading provider for the design, delivery, and implementation of modern environments for K-12 schools, operating at the intersection of learning environments and learning experiences.

TPG’s Rise Fund picked up a controlling stake in the Malaysia-based Asia Pacific University of Technology and Innovation in a deal worth $300 million.

Perdoceo, which owns Colorado Technical University and American InterContinental University System, acquired the software engineering bootcamp Coding Dojo for $53 million.

Tutoring provider Paper acquired the college-readiness tool MajorClarity. The terms of the deal were not announced.

The Riverside Company, a global private investor focused on the smaller end of the middle market, has invested in Eduthings, a software solutions provider for Career and Technical Education (CTE) administrators, teachers, and students to track outcomes and monitor overall program effectiveness. Eduthings is an add-on investment to Riverside’s platform, iCEV, a leading developer of SaaS-based digital curriculum, instructional materials, and industry certifications for the CTE market.

Riverside Company acquired Human Element Solutions, LLC (Element H), a provider of live events, video, creative, and digital content solutions that optimize audience engagement within the pharmaceutical, biotech, and medical device/diagnostic industries.

U.S. News & World Report acquired CollegeAdvisor.com, a college admissions platform, from NCSA College Recruiting. The amount was not disclosed.

Study.com, an online learning platform, acquired the tutoring company Enhanced Prep for an undisclosed amount.

Accelerate Learning, a K-12 STEM curriculum provider was acquired by Providence Equity Partners. The terms were not disclosed.

Imagine Learning, one of the largest digital curriculum providers acquired Winsor Learning, whose staff will join Imagine Learning. The acquisition was announced as part of a new push into special education. The amount was not disclosed.

MSB School Services, a K-12 special education software provider, was acquired by Craftsman Capital, a private equity firm, for an undisclosed amount.

Thesis, a cloud-based administration software system for higher ed, was acquired by the private equity firm SilverTree. The amount wasn’t disclosed.

The student engagement platform Learning Explorer acquired Mosaic, the assessment system from ACT. The amount wasn’t disclosed.

ParentSquare, a K-12 engagement platform developer, acquired Gabbart Communications, a school communications tool. The amount wasn’t disclosed.

Online program management company Noodle acquired the South African-based Hubble Studios, a digital content developer, for an undisclosed amount.

Edustaff, a K-12 staffing company, announced it received a non-controlling investment from the private equity firm Public Pension Capital.

We will update this post every two weeks as we close more deals in the education and edtech sectors and learn about other transactions.

Read our previous article for information 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.

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Reported Acquisitions in the Education and Edtech Sectors in 2025

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Additional Factors to Consider

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The AI Disruption

2U’s Market Exit: A Telling Case Study

The Reality on the Ground

Market Implications and Future Opportunities

Conclusion

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LOCATION:

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Acquisitions in the Education and Edtech Sectors in 2024

In November,

In October,

In September,

In August,

In July,

In June,

In May,

In April,

In March,

In February,

In January,

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Acquisitions in the education and edtech sectors in 2023 so far

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