NEW YORK — January 11, 2021 — Berkery Noyes, an independent mid-market investment bank, today released its full year 2020 mergers and acquisitions trend report for the Education Industry.
The report analyzes M&A activity in the sector during 2020 and compares it with data covering 2018 and 2019. This market includes information and technology companies servicing the Education Industry, including the Childcare Services, K-12, Post-Secondary, and Corporate & Professional Training segments.
Total deal volume in 2020 declined by 11 percent over 2019, from 480 to 428. On a half year basis, M&A activity improved five percent in 2nd Half 2020 over 1st Half 2020, from 209 to 219. Total deal value in 2020 rose by 63 percent over 2019, from $13.04 billion to $21.31 billion. The median revenue multiple declined from 2.8x in 2019 to 2.5x in 2020.
The Professional Training market experienced an upswing in deal activity. The number of technology deals increased 22 percent while services transaction volume rose 11 percent.
Three of the industry’s top five highest value transactions during 2020 occurred in the combined Professional Training segments. Along these lines were Vista Equity Partners’ announced acquisition of Pluralsight, a technology learning platform for software developers, IT administrators, and creative professionals, for $3.89 billion; Churchill Capital Corp II’s announced merger with Skillsoft, which provides cloud-based corporate learning content, for $1.3 billion (following the closing of the merger, the combined company will acquire Global Knowledge for $233 million); and Cambium Learning Group’s announced acquisition of Rosetta Stone, a technology-based learning solutions company best known for its language programs, for $735 million.
The K-12 Media and Tech segment saw volume decline 26 percent over the past year. Deal activity in the Higher-Ed Media and Tech segment decreased 24 percent on a yearly basis.
A copy of the EDUCATION INDUSTRY M&A REPORT FOR FULL YEAR 2020 is available at the Berkery Noyes website.