HW Education Technology and Services Introduction

Harris Williams (“HW”)

  • 25+ years and more than 1,000 closed transactions 
  • 350+ professionals across eight office globally
  • 170+ closed transactions in the last 24 months
  • 10 industry groups

Focused Advisory Services

  • Mergers and acquisitions (M&A)
  • Capital raises 
  • Corporate divestitures

Consistent Recognition for Quality

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HW Technology, Media & Telecom (“TMT”) Group

  • 35+ dedicated TMT professionals 
  • TMT offices include Boston, San Francisco, and London

Key TMT Themes

  • SaaS / Cloud
  • Data & Analytics
  • Digital Transformation
  • A.I. / Machine Learning

Horizontal Focus Sectors

  • Application Software
  • Cloud Managed Services and Hosting Solutions
  • Compliance Solutions
  • CRM and Marketing Automation
  • Human Capital Management
  • Infrastructure and Security Software
  • IT and Tech-Enabled Services
  • Marketing, Research, and Insights Software

Vertical Focus Sectors

  • Architecture, Engineering, and Construction Software
  • Education Technology and Services
  • Energy Technology
  • Facilities and Real Estate Software
  • Financial Technology and Payments
  • Government Technology
  • Healthcare IT
  • Industrial and Supply Chain Technology
  • Internet and eCommerce
  • Retail Technology

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HW Current Market Observations and Insights

HW Technology, Media and Telecom Mid-Year Review

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For access to HW’s Optimizing the Outcome: Dealmaking in TMT During COVID-19, visit here.

Latest HW Market Insights

For access to HW’s latest insight and perspective, email us at insights@harriswilliams.com or visit www.harriswilliams.com/news-insights

Recent Publications:

COVID - 19: Consumer Insights, New Normal Trends, & Investment Implications

M&A Learnings from Past Economic Disruptions

The Impact of 5G on Telecom

Deep Sector Expertise Across Key TMT Focus Areas

  • Architecture, Engineering, and Construction
  • Education Technology and Services
  • Financial Technology and Payments
  • Healthcare IT
  • Industrial and Supply Chain Technology
  • …and more

For access to HW’s TMT content, email us at: TMT_Insights@harriswilliams.com

Education Technology and Services Focus Areas

Professional Education/Training

Solutions focused on supporting the continuing education and regulatory and compliance requirements of corporations

  • Continuing Education
  • Training / Licensure 
  • Skill Development
  • HR and Talent Mangement
  • Governance, Risk, and Compliance
  • Distance Learning

Select Market Participants

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Key Trends2

  • Professional Education/Training spend is expected to reach $113.8B across the globe by 2022
  • Corporations are investing in professional development as a way to attract and retain employees and optimize workforce productivity
  • Personalized learning continues to evolve with new methods of delivery, while certifications remain a way for individuals to differentiate in a competitive marketplace

Higher Education

Solutions focused on serving the educational and administrative needs of higher education institutions

  • Student Information Systems
  • CRM and Enrollment Management
  • Learning Management Systems
  • Competency-Based Learning
  • Fundraising and Alumni Management
  • Learning Analytics and Assessments

Select Market Participants

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Key Trends1

  • Spending on Higher Education Technology in the United States is expected to increase to $29.8B by 2022
  • Higher Education institutions are broadening usage of mobile technology and software that enables data-driven decision-making
  • Retention and enrollment solutions are increasingly being sought out by universities as a means to better attract and retain student populations

K-12 Education

Solutions focused on serving the educational and administrative needs of K-12 schools and districts

  • Student Information Systems
  • Personalized / Adaptive Learning
  • Learning Management Systems 
  • Learning Analytics and Assessments
  • Outcomes and Performance Management
  • Tutoring and Advancement

Select Market Participants

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Key Trends1

  • K-12 Education Technology spending in the United States is expected to reach $21.1B by 2022
  • Districts and schools are increasingly leveraging data in order to drive and substantiate educational outcomes in accordance with federal/state mandates
  • Adoption of digital tools and assessments continues to accelerate as administrators are seeing pronounced impact on student performance and educators’ workflow efficiency

Case Study: Kalkomey

HW’s TMT Group advised Kalkomey, a portfolio company of Inverness Graham, on its sale to Cove Hill Partners.

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Kalkomey is a leading provider of online recreational safety education reaching all 50 U.S. states, as well as Australia, Canada, Guam, Mexico, New Zealand, Puerto Rico, and the United Kingdom. The Company works hand in hand with governmental agencies to provide tailored online safety education courses and certifications for boating, scuba diving, hunting, snowmobiling, and off-roading.

Kalkomey's regulatory-approved safety education courses provide official safety certifications to nearly a million students annually. The Company's cloud-based government agency software offerings drive operational efficiencies of key workflows from licensing and registration, to certification and event management, to compliance and reporting.

Cove Hill is a long-term-oriented private equity firm focused on partnering with management teams to build market-leading technology and consumer companies. The firm manages a long-duration fund with over $1 billion of commitments from its investors and founders. Based in Boston, Cove Hill has an innovative structure that provides the flexibility to enable a patient, concentrated, and value-add approach in a small portfolio of long-term investments.

Relevant Sub-Sectors

  • Education Technology
  • Professional Education / Certifications
  • GovTech

Notable 2Q’20 Education Technology and Services Transactions

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Ridgemont Equity Partners’ Acquisition of American Safety Council

  • American Safety Council (ASC) is a national provider of mandatory training, education, and certification solutions to regulated end markets
  • ASC trains more than 2 million customers annually across over 400 online courses focused on workplace safety, driver safety, and vocational certifications
  • The acquisition will provide strategic and financial support for ASC to enhance its capabilities
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LLR Partners' Investment in TrueLearn

  • TrueLearn is a provider of online test preparation and data analytics to healthcare education and training institutions
  • TrueLearn offers a suite of products for medical students and residents across a range of medical specialties and recently expanded its offerings to adjacent healthcare markets, including pharmacy and allied health
  • The new investment will help to accelerate the Company’s organic growth in existing market verticals, fund expansion into new healthcare markets, and pursue strategic acquisitions
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Charlesbank Capital Partners’ Investment in Cyberbit

  • Cyberbit is a global provider of cyber range training and simulation platforms for cybersecurity professionals
  • Cyberbit delivers more than 100,000 training sessions annually across 5 continents with offices in the U.S., Europe, and Asia, serving a customer base of leading Fortune 500 companies
  • The investment by Charlesbank will help Cyberbit to accelerate development of its cyber range product and increase global sales and marketing
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BV Investment Partners' Investment in StraighterLine

  • StraighterLine is a provider of scalable solutions to deliver affordable, effective, and accelerated learning pathways to formal degree programs and widely recognized industry credentials
  • StraighterLine’s platform supports over 35,000 new students a year, including directly through the straighterline.com website and network of university and employer relationships
  • The investment from BV Investment Partners will help the Company to enhance its technology for new affordable learning pathways
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UWorld’s Acquisition of RxPrep

  • RxPrep is a provider of online review courses for aspiring pharmacists studying for the North American Pharmacist Licensure Examinations and the Pharmacist Law Exams
  • RxPrep offers more than 77 lecture topics and over 3,500 questions in its comprehensive test banks
  • The acquisition is a reflection of UWorld's dedication to deploying the highest-quality and most rigorous learning tools to other healthcare verticals

Professional Education/Training Market Overview

Expansive, Multi-Vertical Market

($ billions)

  • The global Professional Education/Training market is expected to reach $113.8 billion by 2022, growing at a 10.0% CAGR

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Key Market Drivers

  • Acceleration of distance learning resulting from COVID-19 pandemic
  • Mandatory compliance and continuing education programs giving rise to attractive, repeat business models
  • Availability of quality content continues to be a key pain point for highly regulated markets
  • Companies are navigating increasingly complex regulatory environments with costly penalties for non-compliance
  • Expansion of dynamic personalized learning methods such as gamification and micro-learning

Recent Sector Activity3,4

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Professional Education/Training Landscape

To receive the latest Education Technology market maps, please contact HW at TMT_Reader@harriswilliams.com

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Higher Education Technology Market Overview

Spending Levels Remain Strong

($ billions)

  • The U.S. continues to spend significantly on Higher Education technology, with the market expected to reach $29.8 billion by 2022

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Key Market Drivers

  • Growing acceptance that having a data-driven information management strategy is now a necessity for all institutions
  • Continued shift to digital content, assessments, and learning modalities
  • Rising demand for personalized learning tailored to an individual’s needs
  • IT driving department savings through automated administrative workflows and streamlined recruitment/enrollment
  • Accelerating adoption of distance and mobile learning

Recent Sector Activity3,4

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Higher Education Technology Landscape

To receive the latest Education Technology market maps, please contact HW at TMT_Reader@harriswilliams.com

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K-12 Education Technology Market Overview

Evolving Market with Technology Disruption

($ billions)

  • The U.S. continues to spend significantly on K-12 education technology, with the market expected to reach $21.1 billion by 2022P

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Key Market Drivers

  • Increased emphasis on performance, reporting, and accountability underpinned by new legislation such as ESSA (Every Student Succeeds Act)
  • Growing interest in data as a means to drive and substantiate student outcomes
  • Greater usage of tools to drive engagement between parents, teachers, and administrators
  • Consolidation of technology purchasing at the district level, with demand for solutions that address student, classroom, and administrator workflows
  • Rising prominence of formative assessments coupled with data analytics that measure student mastery in order to support in-progress development

Recent Sector Activity3,4

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K-12 Education Technology Landscape

To receive the latest Education Technology market maps, please contact HW at TMT_Reader@harriswilliams.com

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Public Education Technology & Services Companies3

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Education Technology & Services – Trading Comparables3

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1. Gartner

2. Technavio

3. Capital IQ

4. PitchBook

 

The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent. 

Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 8th Floor, 20 Farringdon Street, London EC4A 4AB, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: hwgermany@harriswilliams.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. DE321666994). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.