1st Half 2025 Education Industry Trends

1ST HALF 2025 KEY HIGHLIGHTS

The largest transaction in 1st Half 2025 was Serco Group’s acquisition of the Mission Training and Satellite Ground Network Communications Software Business (MT&S) of Northrop Grumman, for $327 million. The advanced mission training services of MT&S support programs across the U.S. Army, Space Force, Air Force, Navy, Combatant Commands and international partners.

The segment with the largest transaction volume for 1st Half 2025 was Professional Training Services with 45 transactions.

1ST HALF 2025 KEY TRENDS

Total transaction volume in 1st Half 2025 increased by 51 percent over 2nd Half 2024, from 157 to 237.

In terms of acquirer type, strategic volume increased 63 percent on a half year basis, from 110 to 179. Private equity volume rose 23 percent, from 47 to 58.

Total transaction value in 1st Half 2025 decreased 87 percent over 2nd Half 2024, from $22.2 billion to $2.9 billion, displaying a similar value as 1st Half 2023.

The median revenue multiple from 2nd Half 2024 to 1st Half 2025 decreased from 2.4x to 1.8x.

M&A MARKET OVERVIEW

Berkery Noyes tracked 917 Education transactions between 2023 and 1st Half 2025, of which 123 disclosed financial terms, and calculated the aggregate transaction value to be $40 billion. Based on known transaction values, we project the values of 794 undisclosed transactions to be $6.53 billion, totaling $46.75 billion worth of transactions tracked over the past two and a half years.

Transactions from 1st Half 2023 to 1st Half 2025 with enterprise values in the $10-$80 million range had a median revenue multiple of 1.6x, whereas those above $80 million had a median revenue multiple of 6.1x.

Disclosed median enterprise value multiples for all segments combined in this report during the last 30 months were 1.8x revenue and 10.6x EBITDA.