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
  • SaaS/Cloud
  • 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 TMT Mid-Year Review

screen_shot_2020-11-12_at_12.02.40_pm.pngFor access to HW’s optimizing the Outcome: Dealmaking in TMT During COVID-19, visit here.

 

TMT Roundtable: M&A Insights and Outlook

A conversation with global leaders in private equity. For access please visit here.

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Latest HW Market Insights

For access to HW’s latest insights 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
  • Financial Technology and Payments
  • Government Technology
  • 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 Management 
  • 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 a 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.

screen_shot_2020-11-12_at_12.18.43_pm.pngTransaction Overview

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
  • E-Learning / Certifications
  • GovTech

Notable Q3 20 Education Technology and Services Transactions

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Liaison Acquires TargetX

  • TargetX is a provider of customer relationship management solutions that enable colleges and universities to manage their applicants, students, alumni, and donors
  • Together, the combined company will serve over 1,500 campuses, including undergraduate, graduate, and community colleges
  • TargetX’s solutions will complement Liaison’s existing enrollment marketing efforts, reaching potential college applicants earlier and engaging students not only after they enter the classroom, but into the workforce and beyond
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OMERS Growth Equity Leads Series D funding for Skillshare

  • OMERS Growth Equity led a Series D venture funding round that included investment from Burda Principal Investments, Spero Ventures, Catapult VC, Union Square Ventures, and Amasia
  • Skillshare hosts one of the world’s largest online learning community for creativity with more than 12 million registered members and over 30,000 video-based classes in a wide range of creative disciplines
  • This new funding will primarily be used by Skillshare to create a localized experience for international students, while continuing to expand domestically and growing its enterprise offering
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KKR Invests in MasterD

  • MasterD is a provider of vocational training and professional certifications for the private sector and examination preparation across a range of departments for the public sector
  • MasterD offers more than 280 courses that serve over 50,000 people in Spain and Portugal via its online learning platform, supporting learners at all stages of their professional and educational development and improving their career prospects
  • The investment gives MasterD more resources to grow and continue to address the challenge of improving employability by shrinking the gap between graduates’ skills and job requirements, one of KKR’s impact investing goals
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Weld North Education Acquires Purpose Prep

  • Purpose Prep is a provider of K-12 digital curriculum focused on social and emotional learning (SEL)
  • Purpose Prep’s curriculum focuses on personal, character, and leadership development as well as the development of healthy social and emotional skills, mental health and wellness, and readiness for life beyond school
  • Weld North will utilize Purpose Prep’s established SEL program to enhance its current online curriculum and learning platform, Edgenuity
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Dragoneer Investment Group Invests in CampusLogic

  • CampusLogic is one of the fastest-growing companies in education technology, providing critical tools and resources around the financial success of students navigating the higher education landscape and the financial strain that comes with that
  • CampusLogic is rapidly gaining market share, sustaining average annual growth rates of nearly 40 percent, and boasts more than 750 college and university customers
  • The investment gives CampusLogic funding to invest in new product development and make strategic acquisitions that will increase the scope of its student financial success platform

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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Note: As of September 30, 2020

Education Technology & Services – Trading Comparables3

Public Comparables

As of September 30, 2020 ($ in millions)

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1. Gartner

2. Technavio

3. Capital IQ

4. PitchBook