2023-01-16 Berkery Noyes Releases Education Industry M&A Report For Full Year 2022

NEW YORK — January 16, 2023 — Berkery Noyes, an independent mid-market investment bank, today released its full year 2022 mergers and acquisitions trend report for the Education Industry. 

The report analyzes M&A activity in the sector during 2022 and compares it with data covering 2020 and 2021. 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 2022 decreased by four percent over 2021, from 465 to 446. Total deal value in 2022 decreased by 34 percent over 2021, from $30.89 billion to $20.35 billion, which was in line with its 2020 level. The median revenue multiple decreased from 4.1x in 2021 to 1.6x in 2022.

The K-12 Media and Tech segment saw volume decrease 14 percent over the past year. Notable segment deals in 2022 included Veritas Capital’s announced acquisition of Houghton Mifflin Harcourt Company, a learning technology company, for $2.7 billion; Roper Technologies’ announced acquisition of Frontline Education, a provider of school administration software, for $3.4 billion; and KIRKBI’s announced acquisition of BrainPOP, a digital education brand grounded in research and the science of learning, for $875 million.

Upon examination of the Professional Training market, Services transactions underwent a 18 percent increase in volume whereas the number of Technology deals decreased 19 percent.

Two of the industry’s top five highest value transactions during the year occurred in the combined Professional Training Services and Technology segments.

Along these lines were Vista Equity Partners’ acquisition of KnowBe4, Inc., which offers a security awareness training and simulated phishing platform, for $4.4 billion; and Blackbaud’s announced acquisition of EVERFI, a global social impact technology provider, for $750 million.

As for other select markets covered in the report, acquisition activity in the Higher Education Institutions segment increased 28 percent on an annual basis. Notable segment transactions in 2022 included Colibri Group’s announced acquisition of Becker Professional Education and OnCourse Learning, providers of Continued Professional Education, for $500 million; The Rise Fund’s announced acquisition of International Medical University, Malaysia’s first private medical and health sciences university, for $306 million; and Universal Technical Institute’s announced acquisition of Concorde Career Colleges, Inc., a provider of healthcare education programs, for $50 million.

The Childcare Services segment saw volume increased 20 percent over the past year.] One of the industry’s top ten deals occurred in this segment: Bright Horizons Family Solutions’ announced acquisition of Only About Children, an operator of child care and early education centers in Australia, for $319 million.

A copy of the EDUCATION INDUSTRY M&A REPORT FOR FULL YEAR 2022 is available at the Berkery Noyes website.