Select Recent Harris Williams Education Technology & Services Transactions

screen_shot_2019-08-21_at_2.07.49_pm.pngProvider of Workforce Management, Training, and Compliance Solutions for the Healthcare, Financial Services, and Real Estate Industries

 

 

 

screen_shot_2019-08-21_at_2.08.55_pm.pngProvider of K-12 Data Analytics, Learning Assessments, and Student Information Systems Software

 

 

 

screen_shot_2019-08-21_at_2.09.32_pm.pngProvider of Early Learning Services and Childcare Centers

 

 

 

screen_shot_2019-08-21_at_2.09.56_pm.pngProvider of Wellness Coaching, Professional Certifications, and Software Solutions

 

 

 

screen_shot_2019-08-21_at_2.11.02_pm.pngProvider of Performance Training Services and Educational Content for Athletes and Corporations

 

 

 

screen_shot_2019-08-21_at_2.11.43_pm.pngProvider of Career Development, Job Placement, and Learning Management Software for Professional and Trade Associations

 

 

 

screen_shot_2019-08-21_at_2.12.16_pm.pngProvider of Business Management Software and Payments for K-12 Institutions, Associations, and Non-Profits

 

 

 

screen_shot_2019-08-21_at_2.12.43_pm.pngProvider of Change Management Solutions for Corporations and Governments

 

 

 

screen_shot_2019-08-21_at_2.13.07_pm.pngProvider of Emergency Care Training Solutions for Healthcare Professionals, Employees, and Communities

 

 

 

screen_shot_2019-08-21_at_2.13.33_pm.pngProvider of Post Acute Care Compliance and Learning Management Software and Content

 

 

 

Education Technology & Services Focus Areas

Professional Education / Training

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

  • Continuing Education 
  • Degree and Certification Testing 
  • Skill Development
  • HR and Talent Management
  • Regulatory and Compliance
  • Distance Learning

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Key Trends2

  • Professional Education / Training spend is expected to reach $30B 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 & Assessments 

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Key Trends1

  • Spending on Higher Education Technology in the United States is expected to increase to $17.5B by 2021
  • 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 & Assessments 
  • Outcomes and Performance Management
  • Tutoring and Advancement

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Key Trends1

  • K-12 Education Technology spending in the United States is expected to reach $13.3B by 2021
  • 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 continue to accelerate as administrators are seeing pronounced impact on student performance and educators’ workflow efficiency

Notable 2Q 2019 Education Technology & Services Transactions4

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John Wiley & Sons’ Acquisition of Knewton Inc.

  • Knewton is a leading provider of affordable courseware and adaptive learning technology designed to personalize learning for students around the world.
  • Knewton’s delivery of course offerings in areas including math, chemistry, and economics supports professors in over 300 colleges and universities around the world.
  • The acquisition bolsters Wiley’s position in the fast-growing affordable courseware market, enhancing its ability to better serve its network of university and corporate clients.

 

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McGraw-Hill’s Merger with Cengage Learning

  • Cengage Learning is a leading provider of high-quality content and innovative digital learning solutions for the global academic skills, school, and research markets.
  • Cengage Learning’s platform provides students access to affordable, quality learning in over 165 countries around the world.
  • The merger of Cengage Learning with McGraw-Hill will result in a combined company with over 44,000 titles from leading academics and experts, providing more affordable options to U.S. students.

 

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Zovio’s Acquisition of Fullstack Academy

  • Fullstack Academy is a leading provider of skills-based training programs designed to meet the needs of regional employers and enable universities to offer technical programs in web development, data analytics, and visualization.
  • Fullstack Academy’s platform has seen over 2,500 graduates since its inception in 2013, with grads working in companies that span the spectrum from the early stage startups to tech giants.
  • The acquisition will enable Zovio to expand into other high demand employment verticals requiring qualified professionals as well as allowing Fullstack to expand its university partnerships.

 

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Adtalem’s Acquisition of OnCourse Learning’s Financial Services Division

  • OnCourse Learning is a leading provider of workforce management, training, and compliance solutions for the healthcare, financial services, and real estate industries.
  • OnCourse Learning’s financial services division generated nearly $31 million in revenues in calendar year 2018 with a favorable EBITDA margin of over 30% and will add over 1,700 courses to Adtalem’s catalog.
  • The acquisition of OnCourse Learning’s financial services division expands Adtalem’s financial services portfolio and is complementary to the Company’s existing banking, accounting and compliance program offerings.

 

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Gridiron Capital’s Acquisition of Colibri

  • Colibri is a leading provider of education, license upgrade, and professional development courses for professionals in the real estate, healthcare, and financial services industries.
  • The Colibri platform serves over 1.5 million professionals every training cycle and has more than tripled revenue over the past five years.
  • Gridiron Capital’s acquisition of Colibri will better enable the Company to serve existing end markets and expand into new adjacencies.

Investment Activity Within the Broader Professional Education and Training Market is Expected to Remain Robust Through 2019 and Beyond

Expansive, Multi-Vertical Market

($ billions)

  • The global Professional Education & Training market is expected to reach $23 billion by 2022P, growing at a 7.8% CAGR

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Key Market Drivers

  • Proliferation of eLearning across the enterprise
  • 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

Representative Providers

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

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Higher Education Institutions are Investing in Software to Personalize the Learning Experience and Enhance Enrollment

Spending Levels Remain Strong

($ billions)

  • The US continues to spend significantly on Higher Education technology, with the market expected to reach $26.4 billion by 2022P

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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
  • Further adoption of mobile technologies and blended learning

Recent Sector Activity3,4

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Higher Education Technology – Landscape

Representative Providers

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

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Technology Innovation Across K-12 is Impacting Nearly Every Aspect of School Operations and the Student Experience

Evolving Market Being Disrupted by Technology

($ billions)

• The US continues to spend significantly on K-12 education technology, with the market expected to reach $18.9 billion by 2028P

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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

Representative Providers

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

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Public Education Technology & Services Companies3

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As of July 22, 2019

Education Technology & Services – Trading Comparables3

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1. Gartner

2. IDC

3. S&P Capital IQ

4. PitchBook

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