Acquisition Tag

Consolidation Trends in the Industrial Weighing Sector: Why Scale Companies Are Prime Targets

Mergers & Acquisition Trends in the Industrial Weighing Sector

Owners of industrial weighing and scale businesses are facing a pivotal moment: with consolidation heating up in the sector, many smaller and mid-market companies are becoming acquisition targets. In this article, we’ll unpack why this is happening (and how), explore recent deals, and discuss what owners should be doing right now if “selling a scale and balances company” is on their horizon.

The Big Picture — Industry Drivers for Consolidation

Owners of industrial weighing and scale companies are watching a wave of consolidation sweep through their sector. What was once a highly fragmented landscape—filled with dozens of regional dealers, service businesses, and specialty manufacturers—is now drawing interest from national strategics, global OEMs, and private equity investors. Several forces are converging at once, and together they explain why mid-market firms have suddenly become prime acquisition targets.

Market Growth and Technology Trends in the Industrial Weighing Sector

The global industrial weighing industry has always been steady, but in recent years it has become strategically important for companies operating in logistics, manufacturing, energy production, and food processing. Modern supply chains rely on precise, integrated weighing systems capable of feeding real-time data into automation platforms. As a result, buyers aren’t simply acquiring scale companies; they are acquiring the technology backbone needed for Industry 4.0 operations.

Advances in automation, IoT-enabled sensors, and cloud-connected monitoring systems are raising the value of companies that can deliver both equipment and ongoing service. Many mid-market businesses—especially those with decades in the field—have deep customer relationships and recurring maintenance contracts that make them especially attractive. For buyers, these firms provide a ready-made platform for expanding into digital weighing solutions without building the capabilities from scratch.

Why Consolidation Now?

Manufacturing and industrial services have been consolidating for more than a decade, but several recent shifts have accelerated interest in the weighing sector specifically. Labor shortages are forcing many industrial clients to lean more heavily on automation and precision systems. Supply chain pressure has increased the demand for scale accuracy, uptime, and regulatory compliance. And with global logistics becoming more data-driven, weighing systems are now considered part of a company’s digital infrastructure rather than a standalone tool.

This shift makes the acquisition of a mid-market scale or balances business particularly compelling. Buyers see an opportunity to combine multiple regional operations into a single, nationwide platform with unified technology, standardized service offerings, and greater purchasing power. In other words, the market’s fragmentation—once a challenge—is now an opportunity, and the buyers with capital are moving quickly.

Across all of these factors, the core theme is clear: consolidation is rising because weighing systems are no longer optional industrial equipment. They’re becoming integrated, mission-critical components of a modern operation. That’s why buyers searching for growth are suddenly focused on selling a scale and balances company—or more accurately, acquiring one.

Why Mid-Market Scale & Balances Companies Are Attractive Targets

As consolidation accelerates, one pattern stands out: mid-market industrial weighing companies—often family-owned or regional operators—are seeing the most active buyer interest. These firms sit at the intersection of expertise, service capability, and customer trust, creating a combination that buyers struggle to replicate organically. That’s why many acquisition searches specifically target mid-sized companies when evaluating opportunities in the weighing and measurement sector.

Niche Expertise, Recurring Revenue, and Aftermarket Strength

Most mid-market weighing companies have built their reputation on specialized applications and hands-on service. Whether serving manufacturing lines, logistics hubs, food processors, or heavy-industry clients, these firms understand the operational realities of their customers in a way larger corporations often struggle to match.

What truly boosts valuation, however, is the recurring revenue tied to calibration, maintenance, repairs, and certifications. Many companies in this sector generate 30–50% of revenue from service. Buyers love this because it creates predictable cash flow and deepens customer relationships. These service programs also lead to long equipment lifecycles, frequent replacement cycles, and strong aftermarket parts sales—exactly the sort of revenue mix private equity and strategic acquirers look for when evaluating platform opportunities.

Turnkey Value for Buyers Seeking Rapid Expansion

Mid-market scale companies also offer one of the most valuable assets in any industrial service business: established, long-standing customer relationships. Many of these businesses have decades of trust built into the brand—trust that doesn’t appear on a balance sheet but drives significant deal activity.

For buyers, acquiring a mid-sized firm often provides:

• A trained and certified technical workforce
• A built-out service schedule and revenue pipeline
• Local market credibility
• A fully operational calibration lab and service infrastructure

Building these capabilities organically requires years of effort and significant investment. Acquiring a company that already has them allows buyers to enter new geographic markets or verticals immediately.

Filling Strategic Gaps in a Fragmented Industry

Despite the industry’s importance, it remains highly fragmented. Thousands of regional service providers and independent scale dealers operate across the United States. For strategics and private equity, this fragmentation is exactly what makes the sector ripe for roll-ups. Mid-market firms often occupy the “sweet spot”: large enough to have scale, systems, and an established brand—yet small enough that a larger buyer can integrate them smoothly into a broader platform.

That’s why so many buyers are actively researching selling a scale and balances company from the other side of the table—they’re mapping out acquisition targets that can help them capture more of the aftermarket, expand their geographic footprint, and upgrade customers to more advanced, connected weighing technologies.

Illustrative Recent Transactions

Digging into real deal activity helps clarify what’s happening in the market for selling a scale and balances company. The following transactions show how buyers are prioritizing service, technology, and footprint expansion.

Acquisition of Kanawha Scales & Systems (KSS) by Investcorp

On November 13 2025, Investcorp announced its acquisition of Kanawha Scales & Systems (KSS) from American Equipment Holdings (AEH), a portfolio company of Rotunda Capital Partners. (Investcorp).  KSS is a leading U.S. provider of calibration, maintenance, and repair services for complex industrial weighing systems and automated control solutions. (Investcorp Capital)

Key take-aways for owners:

• The buyer (Investcorp) is clearly focused on service/after-market revenue rather than merely equipment manufacturing.
• The deal features an Employee Ownership Plan (EOP) for all employees with at least a year’s service—highlighting the internal value placed on continuity of service culture. (Investcorp)
• The seller (AEH) already had a service-heavy business, suggesting the aggregation of complementary service companies is a live strategy.

Acquisition of Thompson Scale Company by A&D Engineering, Inc. (via A&D HOLON Holdings Co., Ltd.)

Effective October 1 2025, A&D Engineering (a subsidiary of A&D HOLON) acquired the business of Thompson Scale Company in North America. (A&D Holon)  Thompson Scale, founded around 1972 in Houston, is a manufacturer of checkweighers and filling/packaging equipment. (Thompson Scale Company)

Strategic rationale:

• The acquirer emphasized global engineering capabilities and leveraging Thompson Scale’s North American customer base to expand its inspection and weighing solutions footprint. (A&D Holon)
• This deal highlights how equipment-manufacturing businesses with complementary technology are attractive targets (not just service businesses).
• For owners, it underscores that even firms focused on production equipment (rather than service) may find themselves in the crosshairs of consolidation if they offer integrated value-streams.

Reynolda Acquires Carlton Industrial Solutions

In August 2024, Reynolda — a leading private equity group — acquired Carlton Industrial Solutions, a long-established provider of industrial weighing, calibration, repair, and automation services. (Reynolda Equity Partners).

The strategic rationale included:

• Providing Reynolda a strategic platform on which it could do a roll-up
• Bolstering technical service offerings
• Adding recurring service and installation capabilities

A month later, Paul Fackler, Managing Director at Jackim Woods & Co., represented Superior Scale in its sale to private equity backed, Carlton Industrial Solutions, in September 2024.

These transactions demonstrates that scale companies with adjacent industrial services often command strong buyer interest and attract other smaller scale firms seeking liquidity.  Together, these transactions and others, reflect a robust and growing market for high-quality scale and balances companies.

Common Patterns and Emerging Themes

From these transactions, several consistent themes emerge for mid-market scale or balance companies being acquired:

• Service/after-market revenue matters: The KSS deal emphasizes calibration/maintenance as a core value driver.
• Technology/automation integration: With Thompson Scale, the manufacturing target offered inspection and packaging integration—a sign that buyers value smart equipment, not just raw scales.
• Geographic expansion: Buyers are using acquisitions to expand their footprint (North America in the Thompson Scale case) or strengthen U.S. service coverage (in the KSS case).
• Platform or roll-up strategy: Many buyers appear to be engaged in “buy-and-build” strategies—acquiring a mid-market company with solid fundamentals, then layering in additional units or leveraging scale.
• Owner-operated to buyer-operated transition: In many cases the original management remains or transitions into the new ownership—this reduces disruption and preserves value.

For owners considering a sale, these trends suggest preparing to speak in the language of “service recurring revenue,” “technology integration,” “geographic scale,” and “platform potential.”

What Owners of Industrial Weighing Firms Should Do Now

With consolidation accelerating and buyers actively seeking mid-market scale and balances companies, owners who want to maximize value should begin preparing long before they formally go to market. A well-run industrial weighing business is worth a premium—but only when the fundamentals are clear, documented, and positioned in a way that speaks to what buyers are actually paying for today. The following steps can help owners strengthen their companies and improve outcomes when the time comes to explore a sale.

Strengthen and Showcase Recurring Revenue

Service has always been at the heart of the weighing industry, but in today’s M&A environment, recurring revenue is one of the most important drivers of valuation. Buyers look for businesses with predictable, contract-driven income from calibration, preventive maintenance, repairs, certifications, and equipment lifecycle replacement.

Owners can take several practical steps:

• Formalize service agreements if they’re currently informal or verbal.
• Track service revenue separately from installation or equipment sales.
• Document renewal rates and maintenance schedules.
• Highlight long-term customer relationships and multi-location contracts.

Even modest increases in recurring revenue can have an outsized impact on valuation, especially for buyers pursuing buy-and-build strategies in the industrial services sector.

Prepare Clean, Defensible Financials

When you start selling a scale and balances company, buyers will focus their attention to the numbers. Clear, organized, and accurate financials speed up diligence and reduce deal risk—both of which improve the odds of securing a strong offer.

Owners should expect buyers to examine:

• Revenue mix (service vs. equipment vs. parts)
• Margin trends over the last 3–5 years
• Customer concentration
• Technician utilization and labor efficiency
• Recurring versus project-based revenue
• Inventory management and parts turnover

It’s also wise to work with a CPA to tidy up discretionary expenses, normalize EBITDA, and address any accounting irregularities before entering a sale process.

Highlight Technical Capabilities and Technology Integration

Even businesses that focus primarily on mechanical weighing systems should document their technological strengths. Buyers are increasingly looking for companies that can install or service:

• IoT-enabled weighing systems
• Integrated automation or control systems
• Data-logging or cloud-connected monitoring platforms
• High-precision or specialty instruments tied to regulated industries

When owners position their businesses as “technology-forward” rather than “equipment-centric,” they tap into a much larger universe of buyers—many of whom pay premium multiples for firms supporting Industry 4.0 environments.

Document Customer Relationships and Operational Processes

The industrial weighing industry still runs on trust. Many customers have relied on the same scale service company for decades. Buyers want reassurance those relationships will continue after a transaction.

Owners can increase their company’s attractiveness by documenting:

• Key accounts, service history, and contract terms
• Multi-site or multi-facility arrangements
• Renewal cycles
• Industry-specific expertise (food, manufacturing, logistics, pharma, etc.)
• Service routes and technician assignments

Similarly, documenting standard operating procedures—everything from calibration workflows to inventory management—helps buyers visualize a smooth post-closing transition.

Understand Buyer Profiles and Motivations

Different buyers value different aspects of a scale or balances business:

Strategic buyers often focus on geographic expansion, service coverage, and technology integration. They are typically the most efficient post-closing operators.

Private equity buyers look for service-heavy revenue, a strong management team, and the ability to complete additional add-on acquisitions. These buyers frequently create the highest competition because they are deploying capital in pursuit of a long-term roll-up strategy.

Large OEMs or global industrial firms may target companies with unique product lines, strong calibration labs, or expertise in highly regulated industries.

When owners understand these motivations, they can tailor their story and materials to match what buyers are seeking.

Timing the Market: Why Now Matters

Broader industry trends also play a role. Modern manufacturing, logistics, and food processing rely heavily on precise measurement and automated systems. At the same time, many weighing companies founded in the 1970s and 1980s are approaching generational transition. This combination—industry demand rising while owners approach retirement—creates the perfect environment for consolidation.

From a timing standpoint, owners benefit when:

• Service revenue is strong and growing
• Technicians are fully staffed or cross-trained
• Contracts are secure
• Major equipment investments or system upgrades are documented
• The company has shown stable performance across multiple economic cycles

Well-prepared businesses entering the market now are encountering active buyers, favorable industry tailwinds, and strong acquisition demand.

Summary

Key Takeaways for Owners of Industrial Weighing Companies

• Mid‑market industrial scale and balances companies are increasingly attractive M&A targets due to service revenue, technology integration, and geographic footprint.
• Recent transactions, including Kanawha Scales & Systems and Thompson Scale, highlight trends in service, platform acquisitions, and global expansion.
• Buyers value recurring revenue streams, strong customer relationships, and companies that can be integrated into a larger operational platform.
• Owners should prepare for sale by strengthening operations, documenting contracts, and highlighting technology and service capabilities.
• Understanding buyer motivations and market trends can significantly improve valuation and timing for an exit.

Conclusion

Consolidation in the industrial weighing industry is not just a passing trend—it’s a strategic shift. Companies that are well-prepared, financially transparent, and technologically adept are in a prime position to attract high-quality buyers and command premium valuations. By understanding the patterns in recent transactions and taking proactive steps, owners can maximize the value of their business while ensuring a smooth transition.

About Jackim Woods & Company

Jackim Woods & Company is a boutique mergers and acquisitions firm that specializes in representing business owners in lower-middle-market transactions. The firm provides valuation services, targeted buyer outreach, and expert guidance throughout the sale process. Learn more about our scale and balances sector services.

To discuss valuation options, exit strategies, or the sale of your industrial weighing business, for a confidential consultation.

Paul Fackler, Managing Director, pfackler@jackimwoods.com

Rich Jackim, Managing Partner, rjackim@jackimwoods.com

FedEx Linehaul Carriers: A Complete Guide to Opportunities, Risks, and Valuation

Introduction: Understanding FedEx Linehaul Acquisition Opportunities

The logistics sector has experienced unprecedented growth, driven by e-commerce expansion and changing consumer behaviors. Within this landscape, FedEx linehaul carriers represent a unique investment opportunity that combines the stability of the FedEx brand with the entrepreneurial potential of independent operations. For investors and business buyers considering this sector, understanding the intricacies of linehaul operations is crucial for making informed decisions.

Unlike traditional pickup and delivery (P&D) routes that serve local markets, linehaul carriers operate the backbone of FedEx’s transportation network, moving packages between major distribution centers across interstate corridors. This comprehensive analysis examines the investment merits, risks, and valuation considerations for prospective buyers in this specialized market segment.

What Are FedEx Linehaul Carriers?

FedEx linehaul carriers are independent service providers (ISPs) that contract with FedEx Ground to provide interstate transportation services. These operations involve moving trailers loaded with packages between FedEx facilities, typically during overnight hours when traffic congestion is minimal and highway capacity is optimized.

Key Operational Characteristics

Linehaul operations differ significantly from local delivery routes in several fundamental ways:

Transportation Method: Linehaul carriers utilize tractor-trailers rather than delivery trucks, requiring commercial driver’s licenses (CDL) and specialized equipment.

Operating Schedule: Most linehaul routes operate during evening and overnight hours, maximizing highway efficiency and supporting FedEx’s next-day delivery commitments.

Geographic Scope: Routes typically cover hundreds of miles between major metropolitan areas, creating predictable, high-volume transportation corridors.

Service Model: Rather than interacting with end customers, linehaul carriers focus purely on transportation logistics between FedEx facilities.

The Investment Case: Advantages of FedEx Linehaul Carriers

1. Premium Revenue Generation

Linehaul operations typically generate higher revenue per mile compared to local delivery routes. The interstate nature of these operations, combined with the specialized equipment and CDL requirements, commands premium pricing from FedEx Ground.

2. Operational Efficiency

The point-to-point nature of linehaul routes creates several efficiency advantages:

• Predictable Routes: Consistent origin and destination points eliminate route planning complexity
• Economies of Scale: Large trailer capacity maximizes revenue per trip
• Reduced Customer Interface: Minimal customer service requirements compared to delivery operations

3. Brand Leverage and Market Position

Operating under the FedEx Ground umbrella provides immediate credibility and market access. The FedEx brand recognition eliminates customer acquisition costs and provides access to one of the world’s largest logistics networks.

4. Contractual Revenue Stability

FedEx linehaul contracts typically offer multiple payment structures that provide revenue predictability:

• Annual Fixed Fees: Guaranteed base revenue regardless of volume fluctuations
• Per-Mile Compensation: Variable payments based on actual miles driven
• Performance Incentives: Additional compensation for meeting safety and service standards

5. Market Growth Tailwinds

The continued growth of e-commerce and supply chain complexity supports long-term demand for linehaul transportation services. FedEx’s market position and network expansion provide natural growth opportunities for contractors.

Investment Risks and Challenges

1. Significant Capital Requirements

Linehaul operations demand substantial upfront investment across multiple categories:

Equipment Costs: Tractor-trailers represent major capital expenditures, with new equipment costing $150,000-$200,000 per unit. Even used equipment requires significant investment and ongoing maintenance.

Working Capital: Fuel costs, insurance, and employee expenses create substantial working capital requirements before revenue generation begins.

2. Regulatory and Compliance Complexity

Interstate transportation involves extensive regulatory oversight:

DOT Compliance: Department of Transportation regulations require comprehensive safety programs, driver qualification standards, and vehicle maintenance protocols.

Hours of Service: Federal regulations strictly limit driver hours, creating scheduling complexity and potential capacity constraints.

Insurance Requirements: Commercial vehicle insurance costs can be substantial, particularly for newer operations without established safety records.

3. Operational Risks

Several operational factors can significantly impact profitability:

Driver Shortage: The nationwide CDL driver shortage creates recruitment challenges and wage inflation pressure.

Fuel Volatility: Diesel fuel represents a major variable cost, with price fluctuations directly impacting margins.

Equipment Downtime: Mechanical failures can disrupt operations and create expensive emergency repairs or equipment substitution costs.

4. Market Dependency

Linehaul carriers face inherent risks from their dependency on FedEx Ground:

Contract Renewal: ISP agreements require periodic renewal, creating potential business continuity risks.

Route Changes: FedEx retains the right to modify routes or service requirements, potentially impacting operational efficiency.

Volume Fluctuations: Economic downturns or changes in shipping patterns can reduce package volumes and corresponding revenue.

Valuation Guidelines for FedEx Linehaul Carriers

Standard Valuation Multiples

Based on recent market transactions, FedEx route businesses typically trade within established multiple ranges:

Seller’s Discretionary Earnings (SDE) Multiple: 2.9x – 3.5x

• Most commonly used metric for smaller operations
• Includes owner salary and discretionary expenses
• Provides direct comparison for owner-operator situations

EBITDA Multiple: 3.60x – 4.2x

• Preferred for larger operations with professional management
• Normalized metric allowing better comparative analysis
• More relevant for institutional investors

Revenue Multiple: 0.60x – 0.91x

• Useful for initial screening and market comparison
• Less precise but helpful for quick valuation estimates

FedEx Market Multiples as of August 2025

Source: BrokerWorks and Jackim Woods Research

Valuation Adjustments for Linehaul Operations

FedEx linehaul carriers typically warrant premium valuations compared to standard P&D routes due to several factors:

• Higher Barriers to Entry: CDL requirements and equipment costs limit competition and support pricing power.
• Scalability Advantages: Route density and equipment utilization create operational leverage opportunities.
• Reduced Labor Intensity: Fewer employees per dollar of revenue compared to delivery-intensive operations.

Key Valuation Factors

When assessing the potential value of a FedEx linehaul carrier examine the following characteristics carefully:

• Revenue Quality: Analyze the mix between fixed fees and variable compensation to assess revenue stability.
• Route Characteristics: Premium routes with favorable distances, timing, and facilities access command higher multiples.
• Equipment Condition: Well-maintained, newer equipment reduces capital expenditure requirements and supports higher valuations.
• Driver Retention: Low turnover rates indicate operational stability and reduced recruitment costs.
• Safety Record: Clean DOT safety scores and insurance claims history support premium valuations.
• Contract Terms: Remaining contract length and renewal probability significantly impact investment value.

Due Diligence Considerations

Financial Analysis

As part of your due diligence of a possible FedEx carrier, your comprehensive financial review should include:

• Three-year financial statements including profit and loss, balance sheets, and cash flow statements
• Tax returns for verification of reported income
• Route-level profitability analysis for multi-route operations
• Working capital requirements and seasonal variations

Operational Assessment

You should also include the following critical operational factors:

• Equipment maintenance records and replacement schedules
• Driver qualification and retention statistics
• Safety compliance history and DOT inspection records
• Insurance claims history and current coverage adequacy

Market Position Analysis

Understanding competitive position requires evaluation of:

• Route exclusivity and territorial protection
• Service performance metrics versus FedEx standards
• Growth opportunities within existing territory
• Competitive threats from other transportation providers

Deal Structure Considerations

Financing Options

Linehaul carrier acquisitions typically utilize multiple financing sources:

• Seller Financing: Often available for 10-30% of purchase price, providing favorable terms and demonstrating seller confidence.
• SBA Loans: Government-backed lending can provide attractive rates and long repayment terms for qualified buyers.
• Equipment Financing: Separate financing for vehicles and equipment can optimize overall capital structure.

Ownership Structure

Consider optimal ownership structures for tax efficiency and operational flexibility:

Corporate Structure: Required for FedEx ISP agreements, typically S-Corporation or LLC election.

Asset vs. Stock Purchase: Asset purchases often preferred for tax benefits and liability limitation.

Market Outlook and Investment Timing

Industry Growth Drivers

Several long-term trends support continued growth in linehaul transportation:

• E-commerce Expansion: Online retail growth drives package volume increases
• Supply Chain Reshoring: Domestic manufacturing trends increase interstate transportation demand
• Last-Mile Delivery Growth: Hub-and-spoke networks require increased linehaul capacity

Competitive Landscape

FedEx Ground’s market position provides defensive characteristics:

• Network Effects: Comprehensive coverage creates competitive moats
• Brand Recognition: Consumer preference for reliable delivery services
• Operational Excellence: Sophisticated logistics capabilities are difficult to replicate

Conclusion: Strategic Investment Considerations

FedEx linehaul carriers represent a compelling acquisition opportunity for buyers seeking exposure to the growing logistics sector while benefiting from established brand recognition and operational infrastructure. The combination of premium revenue generation, operational efficiency, and market growth drivers creates an attractive investment profile.

However, success requires careful attention to the substantial capital requirements, regulatory complexity, and operational risks inherent in interstate transportation. Prospective investors should work with a mergers and acquisitions advisors who had experience in the sector to value each opportunity correctly, structure a deal properly, conduct comprehensive due diligence, and  secure appropriate financing before committing to this sector.

The valuation multiples and financial characteristics outlined in this analysis provide a framework for evaluating opportunities, but each investment should be assessed based on its unique operational characteristics, market position, and growth prospects. With proper planning and execution, FedEx linehaul carriers can provide stable cash flow and attractive returns for well-capitalized investors with transportation industry expertise.

If you are looking to buy or sell a FedEx linehaul or P&D route operation, we would welcome an opportunity to speak with you and share our expertise.  There is no cost or obligation for an initial consultation and all conversations are strictly confidential.

About the Author and Jackim Woods & Co.

Rich Jackim is a trucking industry investment banker, 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 a wide range of industries. He began focusing on the trucking and transportation sector in 1997 and wrote the Guide to Value Your Trucking Company, published by the American Trucking Association from 1998-2004.

Based on his successful career and unique way of working with clients, Rich wrote the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses.

This book led Rich to founded a training and certification company called the Exit Planning Institute, which he sold to a private equity group in 2012.

Rich and his team at Jackim Woods & Co offers skilled mergers and acquisitions advisory services to privately owned trucking and transportation companies in both sell-side and buy-side transactions. Jackim Woods & Co has arranged over 120 successful transactions, ranging from less than one million to more than eighty million dollars in value.

If you own a trucking or transportation company 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.

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:

1. Assess your current position honestly, including enrollment trends, financial stability, and competitive positioning
2. Identify strategic acquisition targets that complement your liberal arts mission while providing immediate market relevance
3. Develop integration planning that preserves institutional strengths while creating new value
4. Secure stakeholder buy-in from faculty, alumni, and community partners
5. Execute with experienced guidance to ensure a successful transaction and integration
6. 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.

Other Articles by Rich Jackim That You Might Enjoy

Acquisitions in the Education & EdTech Sector in 2025

Acquisitions in the Education and Edtech Sectors in 2024

Acquisitions in the Education and EdTech Sector in 2023

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.

Acquisitions in the Cybersecurity Sector in 2024

The following is a summary of mergers and acquisitions transactions in the cybersecurity sector 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 cybersecurity sector got off to a strong start in 2024, despite a drop in venture capital funding for companies in the sector in 2023.

As a result, valuations for small and medium-sized privately owned cybersecurity firms are close to their all-time highs and significantly higher than valuations for traditional businesses, including fast-growing SaaS businesses. The average small and medium-sized cyber security company is valued at 8x trailing twelve-month annual revenue.

For more information on how to value a small to medium size, privately owned cybersecurity firm, please read our article How to Value Your Cybersecurity Firm in 2025.

Who’s Driving M&A Activity in the Cybersecurity Sector

Based on the list below of mergers and acquisitions in the cybersecurity sector in 2024, the most active types of buyers are as follows:

● Cybersecurity Companies: The most active buyers are other cybersecurity companies seeking to expand their services, enhance technology, and increase market reach. There were at least 47 acquisitions by companies that are primarily focused on cybersecurity. Examples include Fortinet, CrowdStrike, CyberArk, Zscaler, Mimecast, and others.

● Private Equity Firms: These firms are making significant investments in the cybersecurity sector, often looking to build their portfolios and profit from the growing market. There were at least 11 acquisitions by private equity firms, including AE Industrial Partners, Leeds Equity Partners, Thoma Bravo, EQT, Haveli Investments, Permira, Accel-KKR, Clearlake/Francisco Partners, Hg, and others.

● Technology Companies: Many technology companies are acquiring cybersecurity firms to integrate security solutions into their existing products and services. There were at least 10 acquisitions or potential acquisitions by technology companies. Examples include Google, HPE, Cisco, OpenText, Akamai, Cloudflare, SonicWall, Visa, and Mastercard.

● Managed Services Providers: These firms are acquiring cybersecurity companies to enhance their security offerings and provide comprehensive solutions to their clients. There were at least 4 acquisitions by managed services providers, including Integrity360, Lumifi, N-able, and Magna5.

● Telecommunications Companies: These companies are expanding their services and capabilities by acquiring cybersecurity firms. There was at least 1 acquisition in this category, with TELUS acquiring Vumetric Cybersecurity.

● Other Companies: Companies across various industries, such as financial services and healthcare, are acquiring cybersecurity firms to integrate these services into their businesses. There were at least 7 acquisitions by companies in this category including Health Catalyst, Experian, PDI Technologies, Mitsui, Parsons, and Orange.

It’s worth noting that some companies might fit into multiple categories. For instance, some technology companies also offer managed services. Also, the exact number of transactions may vary depending on how the data is categorized.

This list is not exhaustive, as many smaller transactions are not publicly announced. The data only represents the deals that we learned about through our network or were directly involved in.

Acquisitions in the Cybersecurity Sector in 2024

Below is a summary of the mergers and acquisition transactions in the Cybersecurity Sector so far in 2024.  This is not an exhaustive list, as many smaller transactions are never announced.  This list only represents the deals we have learned about through our network or have been directly involved in.  I’ll do my best to update the list every two weeks.

Trends in Cybersercurity M&A

Based on the provided data, several trends are driving acquisitions in the cybersecurity sector. These trends can be summarized as follows:

● Expansion of Service Offerings and Capabilities: A primary driver is the desire of cybersecurity companies to expand their service portfolios and technological capabilities. Many cybersecurity firms are acquiring companies with specialized expertise or complementary technologies to offer more comprehensive security solutions. This is evidenced by the numerous acquisitions of companies that provide services like cloud security, AI-powered security, API security, and threat intelligence. For example, Fortinet acquired Perception Point to enhance its email security offerings, and CrowdStrike acquired Adaptive Shield to provide unified protection against identity-based attacks.

● Market Consolidation and Increased Market Reach: Mergers and acquisitions are also being used to achieve market consolidation and expand market presence. Established companies are acquiring smaller firms to increase their customer base, penetrate new markets, and consolidate their positions in the industry. This is seen in acquisitions such as Integrity360 acquiring Adsigo to expand its European presence, and Lumifi’s acquisitions to expand its healthcare cybersecurity services.

● Integration of Advanced Technologies: The need to integrate advanced technologies, such as AI, is another key trend. Several acquisitions involve companies specializing in AI-driven security solutions, such as Proofpoint acquiring Normalyze, a data security posture management (DSPM) leader, and Cisco acquiring Robust Intelligence for enhanced AI security capabilities. This reflects the growing importance of AI in combating increasingly sophisticated cyber threats.

● Private Equity Investment: Private equity firms are playing a significant role, actively acquiring cybersecurity companies to build their portfolios and capitalize on the growing cybersecurity market. These firms often invest in companies with strong growth potential and innovative technologies, aiming for profitable exits in the future. Examples include Thoma Bravo’s acquisition of Darktrace and EQT’s acquisition of Acronis.

● Demand for Managed Security Services: The rise in demand for managed security services is driving acquisitions in the sector. Many companies are seeking comprehensive security solutions without having to manage them internally. Managed services providers are acquiring cybersecurity firms to enhance their offerings and cater to this growing demand. For example, N-able acquired Adlumin to expand its managed security services.

● Integration of Security into Broader Tech Platforms: Technology companies are acquiring cybersecurity firms to integrate security solutions directly into their platforms and services. This is apparent in acquisitions such as HPE’s purchase of Juniper Networks to enhance networking and security and Akamai’s acquisition of Noname Security to improve API security. This trend shows a recognition that security is a critical component of all technology offerings.

● Cross-Industry Integration of Cybersecurity: Companies from various industries are integrating cybersecurity into their business. Firms across industries, such as financial services, healthcare, and others, are acquiring cybersecurity firms to enhance their businesses. This is seen in acquisitions such as Experian buying ClearSale and Health Catalyst acquiring Intraprise Health.

In summary, the cybersecurity sector’s acquisition trends are being propelled by the need for broader service offerings, market consolidation, the integration of advanced technologies like AI, the strategic investments of private equity firms, the need for managed security services, the integration of security into broader tech platforms, and the increased need for cybersecurity across all sectors. These trends highlight the dynamic nature of the cybersecurity industry and the increasing importance of cybersecurity in the modern business landscape

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

Read our previous article for information about How to Value Your Cybersecurity Firm in 2025.

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 and his team have been providing boutique investment banking services to middle-market companies in a wide range of industries.

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 software, SaaS, Edtech, and cybersecurity 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 a cybersecurity-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.

Coding Bootcamp Acquisitions: 2014 to 2022

This article provides an overview of the publicly announced tech and coding bootcamp acquisitions since 2014.

This article includes the following sections

• Introduction
• Understanding the Bootcamp Market
• Valuing Coding & Cybersecurity Bootcamps
• 2022 Bootcamp Acquisitions
• 2021 Bootcamp Acquisitions
• 2020 Bootcamp Acquisitions
• Summary of Tech Bootcamp Acquisitions
• Notable Coding & Cybersecurity Bootcamp Acquisitions

Introduction

Since the first coding bootcamp acquisition in June 2014, we’ve seen dozens of coding bootcamps get acquired by a wide range of companies, from for-profit education companies (like Capella Education) to co-working companies (like WeWork) and other coding bootcamps (like Thinkful + Bloc)!

With rapid market growth in the bootcamp industry, other types of for-profit education companies are taking note, including traditional vocational schools and 4-year colleges and universities.

Many of these coding bootcamp acquisitions should come as no surprise. Some have been very successful, with the programs going on to significantly increase the number of physical locations and online course offerings.

In addition, as coding bootcamps mature, we are beginning to see bootcamps get acquired by well-known companies for increasingly large sums.  For example, General Assembly was acquired for $413 million, and Trilogy Education for $750 million!

As education industry specialists, Jackim Woods & Co maintains a list of bootcamps acquisitions to track who’s buying whom and how bootcamps and how edtech companies are valued.  As we were compiling the 2022 transactions, it occurred to us that others might be interested in this information as well, so we thought we’d share it with you.  We plan to update this list each year with publicly announced deals involving coding and cybersecurity bootcamps.

Understanding the Coding Bootcamp Market

If you are interested in learning more about the $2.3 billion tech bootcamp sector, please see our article Understanding the Tech Bootcamp Market.

Valuing Tech & Coding Bootcamps

If you’re interested in understanding how bootcamps are valued, please see our article How to Value a Bootcamp – Example and Multiples.

You might also enjoy reading our related article, How to Value an EdTech Company – Multiples & Example.

2022 Coding Bootcamp Acquisitions

2022 was a big year for tech boot camp dealmaking.

• 2022 started off with a bang when Skillsoft, an online course provider, acquired Codecademy in January for $525M.
• Then, in February, Centage Group acquired InfoSec, the leading provider of tech-related certification prep courses, for $190 million.
• The year also ended with two notable transactions when Digital Intelligence Systems acquired Grand Circus for an undisclosed amount, and Simplilearn (a Blackstone Group-backed company) acquired Fullstack Academy.  Fullstack Academy was estimated to be valued at $55 million.

2021 Coding Bootcamp Acquisitions

• ThriveDX (HackerU) acquired Cybint for a reported $50 million.
• Brainstation acquired Wyncode in January 2021
• SNHU acquired Kenzie Academy in March 2021.

2020 Coding Bootcamp Acquisitions 

• K12, the publicly traded online K-12 school and education management provider, paid $165 million in cash to buy Denver-based coding bootcamp Galvanize. For K12, the deal means adding more coding curricula for students in its Destinations Career Academies, which offers high school and career training program hybrids. For Galvanize—which is also Hack Reactor—the deal provides additional funding to grow its corporate learning business, add more physical locations, and increase its services to the military.
• K-12 acquired Tech Elevator for $24M
• Carrick Partners acquired Flatiron School from WeWork for an undisclosed amount.

Summary of Coding Bootcamp Acquisitions

The following is a summary of the publicly announced acquisitions of tech-related bootcamps since 2014.  Keep in mind that only large transactions are typically announced to the public.  We estimate that 75% of the bootcamp transactions each year are small and are not announced to the public.

 Notable Coding Bootcamp Acquisitions

The first reported acquisition of a coding bootcamp was Kaplan Test Prep’s purchase of Dev Bootcamp in June 2014. Although this was the first acquisition in the coding bootcamp industry, it wasn’t Kaplan’s first foray into coding bootcamps.  Kaplan launched its data science bootcamp Metis in early 2014. In 2017 Kaplan integrated Dev Bootcamp into Metis and retired the Dev Bootcamp brand.

Galvanize acquired Zipfian Academy in November 2014. Zipfian Academy was one of the first coding and networking bootcamps in the US. After one year of success, it was acquired by the Denver-based education & coworking powerhouse Galvanize.

ReactorCore acquired MakerSquare in January 2015. After ReactorCore was acquired by MakerSquare, ReactorCore’s first major move was to acquire Chicago-based mobile bootcamp Mobile Makers in September 2015.

The Iron Yard acquired Apollo Education as a “strategic investor” in July 2015. As of October 13, 2017, The Iron Yard is no longer operating.

Strategic Education, Inc. (SEI), the publicly traded holding company for Strayer Education, Inc., acquired New York Code & Design Academy in January 2016. New York Code & Design Academy is no longer operated as a separate brand.

Capella Education acquired Hackbright Academy in April 2016 and shortly afterward acquired DevMountain. Capella Education was later acquired by SEI.

WeWork acquired Flatiron School in October 2017, then in May 2018, WeWork also acquired MissionU.

A few months later, Flatiron School (now a part of WeWork) acquired the UX design bootcamp, Designation, and the cybersecurity bootcamp, SecureSet Academy.

After growing too quickly and facing financial challenges, WeWork sold off most of its assets, including selling Flatiron School to Carrick Partners in June 2020.

In a classic roll-up strategy, Thinkful began acquiring several of its smaller competitors to boost its value.  Starting in 2017, Thinkful acquired Viking Code School and The Odin Project. Then, in April 2018, they acquired Bloc.  When Thinkful reached its desired valuation, it sold to Chegg for $100 million.

Adecco, the large tech staffing company, acquired General Assembly in April 2018 for $413 million. According to Axios, General Assembly had been valued at $440 million. Between 2011-2015, General Assembly raised approximately $120 million in VC funding and earned $100 million in revenue in 2017.  That was the largest bootcamp deal at that time.

However, two years later, 2U acquired Trilogy Education in April 2019 for a record-breaking $750 million!

In early 2022, Centage Group acquired InfoSec, the leading provider of tech-related certification prep courses, for $179 million.

Toward the end of 2022, IT staffing provider Digital Intelligence Systems LLC (Disys) acquired Grand Circus, a virtual coding bootcamp provider that also connects talent to employers.

Outlook for Coding Bootcamp Acquisitions

Many industry analysts are pessimistic about the future of coding bootcamps because of the rapid advances in artificial intelligence and the ability of AI to write relatively sophisticated code.  We do not share that pessimism.  AI will still need talented coders to break projects down into the components that an AI can handle, then direct and instruct the AI about the project parameters, and finally review the AI’s work product and make necessary tweaks and adjustments.  So rather than reducing the demand for programmers, we expect the nature of the course to change and evolve as the technology sector changes and evolves.

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 in value from less than one million to more than eighty million dollars.

If you own a tech boot camp or another education-related business and would like to explore your options, I would welcome an opportunity to speak with you. Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.