NEW YORK — October 8, 2020 — Berkery Noyes, an independent mid-market investment bank, today released its third quarter 2020 mergers and acquisitions trend report for the Education Industry.
The report analyzes M&A activity during the three-month period and compares it with data for the previous six quarters. This market includes information and technology companies servicing the Education Industry, including the K-12, Post-Secondary, Childcare Services, and Corporate and Professional Training segments.
After falling 43 percent in the second quarter, total volume improved 51 percent in the third quarter. Overall deal value nearly quadrupled during this timeframe, from $1.1 billion to $4.2 billion. Of note, two of the industry’s top largest three transactions year-to-date occurred in the third quarter: Adtalem Global Education’s announced acquisition of Walden University, an online institution that enrolls about 48,000 students, for $1.5 billion; 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.
M&A activity in the K-12 Media and Tech segment increased 62 percent, from 13 to 21 deals. Notable transactions in the third quarter included IXL Learning’s announced acquisition of 3P Learning, which offers a suite of mathematics, spelling, and literacy resources that serve around 5 million students in 17,000 schools worldwide, for $119 million; and CampusLogic’s acquisition of RaiseMe, a social enterprise focused on expanding access to higher education, especially among low-income and first-generation students.
As for other select markets, M&A activity in the Higher-Ed Media and Tech segment doubled, from eight to 16 deals. This marked a return to its second quarter level.
A copy of the EDUCATION INDUSTRY M&A REPORT FOR THIRD QUARTER 2020 is available at the Berkery Noyes website.