Select Recent HW Education Technology and Services Transactions

screen_shot_2019-10-16_at_3.51.55_pm.pngProvider of Environmental, Health, and Safety Compliance and Training Platform to Make Workplaces and Communities Safer

 

 

 

screen_shot_2019-10-16_at_3.52.42_pm.pngProvider of Workforce Management, Training, and Compliance Solutions for the Healthcare, Financial Services, and Real Estate Industries

 

 

 

screen_shot_2019-10-16_at_3.53.10_pm.pngProvider of K-12 Data Analytics, Learning Assessments, and Student Information Systems Software

 

 

 

screen_shot_2019-10-16_at_3.53.43_pm.pngProvider of Early Learning Services and Childcare Centers

 

 

 

screen_shot_2019-10-16_at_3.54.11_pm.pngProvider of Wellness Coaching, Professional Certifications, and Software Solutions

 

 

 

screen_shot_2019-10-16_at_3.54.45_pm.pngProvider of Performance Training Services and Educational Content for Athletes and Corporations

 

 

 

screen_shot_2019-10-16_at_3.55.13_pm.pngProvider of Career Development, Job Placement, and Learning Management Software for Professional and Trade Associations

 

 

 

screen_shot_2019-10-16_at_3.55.40_pm.pngProvider of Business Management Software and Payments for K-12 Institutions, Associations, and Non-Profits

 

 

 

screen_shot_2019-10-16_at_3.56.07_pm.pngProvider of Change Management Solutions for Corporations and Governments

 

 

 

screen_shot_2019-10-16_at_3.56.35_pm.pngProvider of Post Acute Care Compliance and Learning Management Software and Content

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 continue to accelerate as administrators are seeing pronounced impact on student performance and educators’ workflow efficiency

Case Study: HSI

HW’s TMT Group advised HSI, a portfolio company of The Riverside Company, on its sale to Waud Capital.

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Transaction Overview

HSI is a premier environmental, health and safety compliance and training platform that enables organizations of all sizes to make their workplaces and communities safer, while reducing both financial and reputational risk and ensuring compliance in an increasingly complex regulatory environment.

HSI strives to deliver best-in-class, regulatory-approved content coupled with an unrivaled network of more than 47,000 authorized trainers to help organizations of all sizes meet ever evolving EHS requirements. HSI’s platform registered over 4M course completions across 935+ unique online courses in 2018.

Based in Chicago, WCP is a leading growth-oriented private equity firm with total capital commitments of approximately $3 billion since its founding in 1993. WCP partners with exceptional management teams to build market-leading companies in two sectors: healthcare services, and business and technology services. Since its founding, the firm has successfully completed more than 275 investments, including platform companies and follow-on opportunities.

Relevant Sub-Sectors

  • EHS / Compliance Software
  • SAAS
  • Edtech

 

Notable 3Q 2019 Education Technology & Services Transactions

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Chegg’s Acquisition of Thinkful

  • Thinkful is a leading provider of an online coding platform designed to offer mentor-led training programs in data science, front-end development, and full-stack development.
  • Thinkful’s suite of courses empower students looking to obtain in-demand job skills at affordable prices, with the average customer being 30 years-old, two-thirds working while in class, and half without a college degree.
  • The acquisition expands Chegg’s direct-to student learning platform by adding affordable and high-quality courses focused on the most in-demand technology skills to develop the next generation workforce.

 

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Waud Capital’s Acquisition of Health and Safety Institute (HSI)

  • HSI is a leading provider of environmental, health, and safety (EHS) compliance, training, and workflow software that enables organizations to make their workplaces safer, while reducing both financial and reputational risk.
  • HSI provides a regulatory-approved content library delivered through a sophisticated LMS, creating engaging and personalized learning experiences.
  • Post-acquisition, Waud will help HSI expand its product offering, continue developing its foundational platform, and explore new verticals and markets.

 

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Coursera’s Acquisition of Rhyme Softworks

  • Rhyme Softworks is a provider of a virtual training software designed to offer hands-on software demos and training to  better prepare programming students for real-world business needs.
  • Rhyme Softworks’ learning platform allows learners to follow along with self-paced or live guided sessions, while simultaneously completing projects and assignments from the browser without any environment setup.
  • Coursera’s acquisition of Rhyme Softworks furthers its strategic vision for Coursera Labs, a new capability that allows partners to create hands-on projects using almost any third-party software application.

 

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WebMD’s Acquisition of QxMD

  • QxMD is a leading provider of personalized learning solutions and mobile decision point tools for physicians and healthcare professionals.
  • QxMD’s technology platform aggregates PubMed feeds, journal table of contents, 450+ diagnostic tools, micro-CME courses, and more to deliver the latest evidence and decision support tools.
  • The acquisition expands WebMD’s continuing medical education platform, Medscape, reaching physicians in 150+ countries and expanding Medscape’s global footprint to 4m+ physicians worldwide.

 

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Wiley’s Acquisition of zyBooks

  • zyBooks is a leading provider of a digital courseware platform for computer science and STEM courses designed to offer an alternative form of learning to one using conventional paper books.
  • zyBooks has partnered with 500+ educational institutions, working with 500,000+ students to deliver a revolutionized, interactive learning experience for activity-heavy disciplines.
  • The acquisition of zyBooks enhances Wiley’s recent acquisition of Knewton, adding a courseware catalog to the platform that is more heavily focused on computer science and engineering subjects.

Professional Education / Training Market Overview

Expansive, Multi-Vertical Market

($ billions)

The global Professional Education / Training is expected to reach $113.8 billion by 2022P, growing at a 10.0% 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_Reader@harriswilliams.com

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Higher Education Technology Market Overview

Spending Levels Remain Strong

($ billions)

The US continues to spend significantly on Higher Education technology, with the market expected to reach $29.8 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_Reader@harriswilliams.com

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K-12 Education Technology Market Overview

Evolving Market with Technology Disruption

($ billions)

The US 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

Representative Providers

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

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Public Education Technology & Services Companies

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As of September 30, 2019

Education Technology & Services – Trading Comparables

Public Comparables

As of September 30, 2019 ($ in millions)

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1. Gartner

2. Technavio

3. Capital IQ

4. PitchBook

 

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