Below are press releases introducing our quarterly trend reports, closing announcements for transactions led by Berkery Noyes, and notifications of senior staff changes. Our expertise and research is often referenced in the media as well. To view recent articles featuring the firm, visit our In the News section.

An Overview of M&A in the Healthcare Industry

Apr 2, 2020

Strategic buyers are looking to jump start revenue growth or move into adjacent markets. They are acquiring businesses to build out their product portfolio and broaden their customer footprint. At the same time, private equity has capital available and is seeking to acquire or back unique opportunities with large market potential. This includes the physician practice sector and expanding into specialties such as orthopedics, urology, and oncology. With the emergence of the COVID-19 pandemic, the telehealth market is one example of a sector growing significantly as integrated services gain in popularity. Virtual doctor visits are becoming more widespread with email, video conferencing, phone, and other forms of communication offering an alternative option for non-emergencies. Telemedicine is having a positive impact on mental healthcare as behavioral health professionals connect with patients in real-time, which is particularly important given that treatment for mental illness has long been underserved. Moreover, remote psychiatry services can reduce costs by having patients avoid emergency room or other hospital visits. As for neurology, stroke specialists can remotely diagnosis a patient by working in tandem with emergency room and nurse practitioners. In addition, telehealth provides a chance for patients in rural communities to access medical expertise that they might otherwise be excluded from. Data is driving healthcare transformation, with prediction and prevention a central force. Health data is allowing doctors to build better patient profiles and predictive models to more effectively anticipate, diagnose, and treat disease. Meanwhile, the industry is grappling with the tension between encouraging data sharing to maximize the benefits of collaboration and maintaining patient privacy and trust. These developments are altering the role of physicians and their relationships with patients.The use of real-world data (RWD) and real-world evidence (RWE) within healthcare systems is expanding as stakeholders face pressure to satisfy the needs of a changing industry. RWE is being used by payors, providers, and pharmaceutical companies to help make decisions about cost-effectiveness and usefulness, especially when other data sources are lacking. RWE is bolstering the knowledge obtained from randomized controlled trials (RCTs), leading to data sets that are more inclusive. Also of note, behavioral health is one of the industry’s most active sectors right now. The treatment of autism with applied behavior analysis (ABA) in particular is drawing considerable levels of investment. It’s difficult to enter the autism market without expertise in treating children with specialized needs, so those with domain expertise tend to be the most successful. As a high growth market that remains fragmented, many strategic buyers and financial sponsors are interested in opportunities to increase their exposure.Current M&A Market Landscape Total transaction volume increased 14 percent on a year-to-year basis, from 470 to 535. Aggregate value declined four percent, from $36.11 to $34.51 billion.Strategic Buyers• Strategic volume improved six percent annually, from 336 to 356 deals. Strategic acquirers accounted for 69 percent of volume and 53 percent of value from 2018 to 2019.Financial Sponsors• Private equity backed volume gained 34 percent year-over-year, from 134 to 179 deals. Financial sponsors represented 31 percent of volume and 47 percent of value from 2018 to 2019.Industry Wide ValuationsEnterprise value multiples over the past 24 months have been strong. The median revenue multiple during this timeframe was 2.4x, while the median EBITDA multiple was 12.1x.M&A Analysis of the Past Two YearsBerkery Noyes recorded 1,005 industry merger and acquisition (M&A) transactions from the beginning of 2018 through the end of 2019. Based on volume, the most active market segment during the past two years was Healthcare IT with about half of the industry’s aggregate activity.The median revenue multiple shifted from 2.5x to 2.3x, while the median EBITDA multiple saw a slight uptick from 11.9x to 12.6x. Transactions in the $10-$20 million range received a median revenue multiple of 1.7x. Deals above $20 million in enterprise value garnered a median revenue multiple of 3.1x.

An Overview of M&A in the Education Industry

Apr 2, 2020

There has been a steady increase in M&A activity in the education market. Strategic players in the space are seeking to adapt to a shift in learning modalities while financial sponsors have become interested in the opportunity presented by a sector in transition. In many instances, there is an ongoing shift from live, in-person instruction to a model that emphasizes online or blended learning.The K-12 education market remains active, as new technologies and services help improve student performance and teacher efficiency, improving overall outcomes. Companies that offer adaptive learning solutions and assessment products continue to have a meaningful impact. Advancements in online education, digital classrooms, specialized curriculum, and peer-to-peer sharing platforms are transforming the ways in which teachers and students collaborate inside and outside the classroom.With the emergence of the COVID-19 pandemic and subsequent closure of schools worldwide, remote learning has become more important than ever. Laptops and tablets have accelerated the pace at which students are utilizing digital tools and content, allowing the introduction of new entrants into the space and compelling incumbent education providers to evaluate new technologies and models. However, there is an uneven level of accessibility and preparedness for remote education in K-12 throughout the U.S. The disparities between suburban and inner-city districts presents a plethora of challenges, for example the lack of student access to learning devices and reliable broadband. The Higher-Ed market has seen online proctoring, testing, and assessment gain traction and rapidly expand. This includes online grading in subjects such as math, chemistry, and other quantitative disciplines. The automatic scoring and grading of essays is also likely to develop over time.Current M&A Market LandscapeTotal transaction volume increased nine percent on a year-to-year basis. Aggregate value declined 21 percent, from $15.64 billion to $12.30 billion. Strategic Buyers• Strategic volume saw a nine percent gain on an annual basis, from 292 to 318 deals. Strategic acquirers accounted for 66 percent of volume and 52 percent of value from 2018 to 2019.Financial Sponsors• Private equity backed volume improved eight percent over the past year, from 149 to 161 deals. Financial sponsors represented 34 percent of volume and 48 percent of value from 2018 to 2019.• The overall industry’s largest deal in 2019 was Thoma Bravo’s announced acquisition of Instructure, which is known in particular for its Canvas learning management system (LMS), for $1.86 billion.• The most active overall acquirer in the Professional Training Services segment in 2019, either directly or through an affiliated business, was Leeds Equity Partners with four transactions: Kaplan Altior, which delivers classroom-based, online and in-house skills training and assessments to the legal and professional services sectors; VitalSmarts, a communication and leadership development training business; The Center for Legal Studies, which offers online programs and training courses for paralegals and other legal support professionals; and Watermark Learning, a business analysis and project management training company.Industry Wide ValuationsEnterprise value multiples over the past 24 months have been strong. The median revenue multiple during this timeframe was 2.3x, while the median EBITDA multiple was 9.9x.M&A Analysis of the Past Two YearsBerkery Noyes recorded 920 education industry merger and acquisition (M&A) transactions from the beginning of 2018 through the end of 2019. Note that this covers all segments, including brick-and-mortar institutions. Deals with a tech component accounted for nearly half of aggregate volume. As for specific sectors, K-12 Media and Tech and Professional Training Services were tied as the industry’s most active market segments in 2019 with 99 transactions each.The overall industry’s median revenue multiple over the past year rose from 1.8x to 2.8x. The median EBITDA declined from 10.5x to 9.6x. Transactions with enterprise values in the $10-$20 million range received a median revenue multiple of 1.9x, compared to 2.6x for those in the $20-$80 range and 3.2x for those above $80 million.

An Overview of M&A in the Financial Technology and Information Industry

Apr 1, 2020

Private equity firms as well as strategics that are looking to extend their product offerings are showing a high level of interest in this expanding and rapidly changing market. End-users of financial technology solutions in general are often diverse, global, and well capitalized institutions with significant IT spend at their disposal. A sizable number are actively seeking tools that drive alpha, reduce costs, or assist in compliance. The return on investment for financial technology and information customers can be high, encouraging users to view these technologies as not only productivity solutions but also profit generators. With the emergence of the COVID-19 pandemic, certain sectors in the financial technology industry may be poised for growth. As an example, some have argued over the past several years that mobile payments alone might not provide a value-added service for consumers. This has changed as the vulnerabilities of cash have come more into focus. Beyond mere convenience, mobile payments avoid the potential health concerns around handling paper bills, which are exchanged frequently, or the need to use ATMs and touchscreens. Companies that can integrate a full range of products with their mobile payments platform provide a compelling reason for both consumers and merchants to adopt the technology.Security also remains a major area to address for many players in the space. Although credit card companies and merchants have measures in place to reduce fraud related risk, they are attempting to refrain from overly complicating the consumer transaction experience in order to prevent the frustration that leads to lower sales volume. With this challenge in mind, there is great opportunity for companies who provide discreet and effective fraud-detection technology. For card providers and merchants, the possession of secure and streamlined technology should provide a competitive edge.As for the real estate market, agents and other professionals are looking for tools that will give them a competitive advantage over their rivals, whether it’s by better targeting and reaching more prospects, shortening the sales cycle process, or communicating more effectively with clients. Moreover, there is innovation occurring in quite a few areas, as seen by the plethora of companies that provide predictive marketing analytics, CRM solutions, virtual property viewing services, broker-free search engines, and technology-enabled property and lease management brokerages.The mortgage sector is also undergoing consolidation. In particular, acquirers are embracing tactical acquisitions of appraisal firms to capture customers and increase market share. Because a primary goal for many large vendors is to create end-to-end solutions, mortgage technology platforms that add to existing overall systems and help the acquirer create critical mass are some of the most sought after investments. Current M&A Market LandscapeTransaction volume increased ten percent over the past year, from 513 to 564. Aggregate value more than tripled, from $49.32 billion to $180.86 billion. Of note, there were five deals with disclosed values above $20 billion in 2019, compared to none in 2018.Strategic Buyers • Strategic volume improved 14 percent on an annual basis, from 386 to 440 deals. Strategic acquirers accounted for 77 percent of volume and 87 percent of value from 2018 to 2019.Financial Sponsors• Private equity backed volume saw a two percent decline year-over-year, from 127 to 124 deals. Financial sponsors represented 23 percent of volume and 13 percent of value from 2018 to 2019.Industry Wide ValuationsEnterprise value multiples over the past 24 months have been strong. The median revenue multiple during this timeframe was 3.0x, while the median EBITDA multiple was 13.8x.M&A Analysis of the Past Two YearsBerkery Noyes recorded 1,077 financial technology and information industry merger and acquisition (M&A) transactions from the beginning of 2018 through the end of 2019. The median revenue multiple shifted slightly from 3.0x to 2.9x during this time period. Transactions in the $10-$20 million range received a median revenue multiple of 1.1x, compared to 2.4x for those in the $20-$80 million range and 4.4x for those in the $80 million and above range.

Berkery Noyes Releases First Quarter 2012 Media and Marketing Industry Mergers & Acquisitions Report

Apr 5, 2012

Berkery Noyes, an independent mid-market investment bank, today released its First Quarter 2012 Mergers and Acquisitions Trend Report for the Media and Marketing Industry. Transaction volume in the Media and Marketing Industry improved seven percent. In addition, transaction value increased for the second consecutive quarter, representing a 38 percent increase from Q3 2011 and a 10 percent gain in comparison to Q4 2011. The Marketing segment, which saw overall deal activity rise 13 percent, was bolstered by Digital Marketing's 68 percent rise in volume. According to Kathleen Thomas, managing director at Berkery Noyes, "Content delivery is in the midst of a permanent transformation. Marketers have vast opportunities in front of them to reach customers effectively and efficiently and businesses have compelling new models to attract and monetize end users." For example, OwnerIQ's acquisition of DiJiPOP shows demand in the marketplace for solutions that facilitate the conversion of website visitors into paying customers. Targeted advertising and paid product placements that occur in real time are becoming even more popular among retailers, as highlighted by their more frequent use of social media to identify and engage potential consumers. With 99 transactions, Internet Media M&A volume remained constant compared to the previous quarter. Nonetheless, one area of the Internet Media segment – online shopping guides – saw a 43 percent increase in volume. Groupon's acquisition of Adku, The Home Depot's acquisition of Redbeacon, and TaskRabbit's acquisition of SkillSlate all highlight buyer interest in companies that help consumers receive personalized recommendations. These types of customized results, which redirect people intelligently, are often formulated based upon prediction engines, proprietary search algorithms, and location based technologies. Within the Internet Media segment, Groupon was the most active acquirer. Besides its acquisition of Adku, the deal site has completed two other Media and Marketing Industry acquisitions thus far in 2012: UpTake Networks and Hyperpublic. In comparison, Groupon had six information acquisitions for all of 2011, and most of those transactions were focused on the Online and Mobile Industry. With five acquisitions, United Business Media Limited (UBM) led the Exhibitions, Conferences, and Seminar segment to its strongest quarter in the last 15 months. In the Entertainment segment, 18 of the 38 deals for the quarter were either video or online games. "Zynga's acquisition of for $180 million demonstrates the potential for M&A in social gaming, an area that appears poised for growth," said Berkery Noyes managing director Evan Klein." Mobile in particular is one of the fastest growing components of social gaming. Similar to last quarter, 33 percent of video game transactions in Q1 2012 placed into this category.

Berkery Noyes Releases First Quarter 2012 Software Industry Mergers & Acquisitions Report

Apr 3, 2012

Berkery Noyes, an independent mid-market investment bank, today released its First Quarter 2012 Mergers and Acquisitions Trend Report for the Software Industry. Q1 2012 transaction value in the Software Industry increased 10 percent, whereas transaction volume declined 10 percent compared to the previous quarter. Within the niche software classification, which is software designed to be used by specific vertical industries, software targeted to financial firms was one of the most active segments. The largest related deal for the quarter was Vista Equity Partners' announced acquisition of Misys, a provider of banking and financial services software solutions, for $2 billion. Upon deeper inspection, 52 percent of financial software deals in Q1 2012 were related to capital markets. According to Berkery Noyes managing director Peter Ognibene, "Big data is increasing the demands on trading, modeling, executing, and portfolio management." Two niche capital markets software transactions, Envestnet's announced acquisition of Tamarac and SEI Investments' announced acquisition of NorthStar Systems International, pertained directly to wealth management. Cloud computing is continuing to have a significant impact on the enterprise software landscape. Oracle's announced acquisition of Taleo for $1.9 billion was the largest business software transaction in Q1 2012, while Blackbaud's announced acquisition of Convio for $274 million was the tenth largest deal in the Software Industry. Symantec Corporation's announced acquisition of LiveOffice Corporation for $115 million was one of the largest infrastructure software transactions for the quarter. Regarding this segment, transactions with a specific focus on security increased 75 percent over Q4 2011. "As indicated by Safenet's acquisition of Cryptocard, Alert Logic's acquisition of Armorlogic, and TrustWave's announced acquisition of M86 Security this quarter, there is healthy demand for companies offering cloud based and Software-as-a-Service (SaaS) cyber security solutions," said Christopher Young, managing director at Berkery Noyes. M&A relating to security was responsible for 30 percent of infrastructure software deals in the quarter, compared to 15 percent in Q4 2011. Several of these involved mobile security solutions. For instance, Symantec's acquisition of Nukona and Odyssey Software, the company's two other Q1 2012 deals, focus on security for mobile devices. Twitter's January acquisition of Dasient, a cloud based company that helps avert malware attacks, shows the social networking site is committed to securing its user's data. This comes in the aftermath of Twitter's Q4 2011 acquisition on Whisper Systems, a security software startup for mobile platforms. A copy of the Q1 2012 SOFTWARE INDUSTRY M&A TREND REPORT is available at the Berkery Noyes website.

Berkery, Noyes & Co. represents John Wiley & Sons, Inc. in its acquisition of Jossey-Bass from Pearson

May 24, 1999

NEW YORK,  May 24, 1999 -- William J. Pesce, President and Chief Executive Officer of John Wiley & Sons, Inc., announced today that Wiley has signed an agreement to purchase the San-Francisco-based publisher, Jossey-Bass, from Pearson. It is expected that results from this acquisition should be slightly dilutive to earnings in the first year, with a positive contribution to EPS and operating margins thereafter. The acquisition, which is subject to Hart Scott Rodino review, is expected to close within 60 days. The purchase price will approximate $82 million in cash. "Like Wiley, Jossey-Bass has a strong reputation as a publisher of highly regarded professional books and journals. Their publishing programs will solidify our positions in key markets. We look forward, with enthusiasm, to collaborating with the Jossey-Bass team," said Mr. Pesce. "The acquisitions of Jossey-Bass and the higher education titles from Pearson (announced on May 11) are superb opportunities for Wiley to strengthen our market positions and leverage our infrastructure in core business areas," explained Mr. Pesce. "Over the past decade, Wiley has gained market share and improved operating margins consistently. These acquisitions will allow us to continue to deliver quality content to our customers, while increasing shareholder value." Jossey-Bass, which was founded in 1967, is a publisher of books and journals for professionals and executives, primarily in the areas of business, psychology, and education/health management. Jossey-Bass has important publishing relationships with the Peter F. Drucker Foundation, the Center for Creative Leadership, and Booz Allen Hamilton. They published more than 200 titles in 1998. Founded in 1807, John Wiley & Sons, Inc., is an independent, global publisher of print and electronic product, specializing in professional and consumer books and subscription services; textbooks and educational materials for colleges and universities; as well as scientific and technical books and journals. Wiley has publishing, marketing, and distribution centers located in the U.S., Canada, Europe, Asia, and Australia. The company's Class A and Class B shares are listed on the New York Stock Exchange under the symbols JWa and JWb, respectively. Wiley's Internet site can be accessed at