Select Recent HW Education Technology & Services Transactions

screen_shot_2019-01-29_at_12.38.28_pm.pngProvider of Workforce Management, Training, and Compliance Solutions for the Healthcare, Financial Services, and Real Estate Industries

 

 

 

screen_shot_2019-01-29_at_12.39.25_pm.pngProvider of K-12 Data Analytics, Learning Assessments, and Student Information Systems Software

 

 

 

screen_shot_2019-01-29_at_12.40.03_pm.pngProvider of Wellness Coaching, Professional Certifications, and Software Solutions

 

 

 

screen_shot_2019-01-29_at_12.40.46_pm.pngProvider of Performance Training Services for Athletes and Corporations

 

 

 

 

screen_shot_2019-01-29_at_12.41.16_pm.pngProvider of Early Learning and Childcare Centers

 

 

 

 

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Provider of Career Development, Job Placement, and Learning Management Software for Professional and Trade Associations

 

 

 

screen_shot_2019-01-29_at_12.42.28_pm.pngProvider of Business Management Software and Payments for K-12 Institutions, Associations, and Non-Profits

 

 

 

screen_shot_2019-01-29_at_12.43.05_pm.pngProvider of Change Management Solutions for Corporations and Governments

 

 

 

screen_shot_2019-01-29_at_12.44.25_pm.pngProvider of Emergency Care Training Solutions for Healthcare Professionals, Employees, and Communities

 

 

 

screen_shot_2019-01-29_at_12.44.59_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

Select Market Participants

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Key Trends1

  • Professional Education / Training spend is expected to reach $30B globally by 2022, increasing at a 15.3% CAGR
  • 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 $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 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 $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

Our Latest Insights

Getting Smart: Opportunities in Educational Technologies and Services

getting_smart.pngThe educational products and services segment is large, diverse, and driven by strong tailwinds, providing compelling opportunities for many different types of buyers and investors. It encompasses companies specializing in early, K-12, and higher education as well as corporate training and technology.

“There is a massive part of our economy that touches the education market in some way, shape or form,” says Mike Wilkins, a managing director in the Technology, Media & Telecom Group. “Education has evolved in ways that impact all of our lives. Whether from a consumer perspective, business services perspective, or a technology perspective, the opportunities for companies providing solutions in the education space are significant.”

See our full insights on the educational technologies and services space, including key takeaways from four recent Harris Williams transactions.

 

Case Study: OnCourse Learning

HW’s TMT Group advised OnCourse Learning, a portfolio company of CIP Capital, on its acquisition by Bertelsmann Education Group.

screen_shot_2019-01-29_at_12.53.21_pm.pngRelevant Education Technology Sub-Sectors

  • Professional Education / Training
  • K12
  • Higher Education

Company Overview

OnCourse Learning is a leading provider of eLearning, workforce management, and compliance solutions to enterprises and professionals across three high growth, highly regulated markets: healthcare, financial services, and real estate.

OnCourse offers a full suite of educational products including state and federally approved prelicensing and continuing education programs, accredited course content, exam prep tools, publications, e-books, events, and a sophisticated and customizable learning management system and course-authoring tool.

Bertelsmann SE & Co KGaA is a diversified media, services, and education company with operations spanning the globe.  OnCourse joins the Bertelsmann Education Group’s family of leading digital education and services companies, including Relias, Udacity and Hot Chalk.  As part of the transaction, OnCourse’s professional education segment will become a new entity within Bertelsmann Education Group while OnCourse’s healthcare segment will merge with Relias, a healthcare-focused e-learning, assessment and performance metrics business within the Bertelsmann Education Group portfolio.

Case Study: IO Education

HW’s TMT Group advised IO Education, a portfolio company of LLR, on its merger with Illuminate Education, a portfolio company of Insight Venture Partners.

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Relevant Education Technology Sub-Sectors

  • Professional Education / Training
  • K12
  • Higher Education

Company Overview

OnCourse Learning is a leading provider of eLearning, workforce management, and compliance solutions to enterprises and professionals across three high growth, highly regulated markets: healthcare, financial services, and real estate.

OnCourse offers a full suite of educational products including state and federally approved prelicensing and continuing education programs, accredited course content, exam prep tools, publications, e-books, events, and a sophisticated and customizable learning management system and course-authoring tool.

Bertelsmann SE & Co KGaA is a diversified media, services, and education company with operations spanning the globe.  OnCourse joins the Bertelsmann Education Group’s family of leading digital education and services companies, including Relias, Udacity and Hot Chalk.  As part of the transaction, OnCourse’s professional education segment will become a new entity within Bertelsmann Education Group while OnCourse’s healthcare segment will merge with Relias, a healthcare-focused e-learning, assessment and performance metrics business within the Bertelsmann Education Group portfolio.

Notable Q4 2018 Education Technology & Services Transactions2

screen_shot_2019-01-29_at_1.05.02_pm.pngGrand Canyon Education’s Acquisition of Orbis Education

  • Orbis Education is a leading provider of collaborative nursing educational services used to alleviate nursing workforce shortages with programs focused on academic quality and student preparedness
  • Orbis Education partners with universities to expand pre-licensure healthcare programs, providing upfront capital investment, optimizing curriculum with its 900 proprietary learning objects, and managing clinical placements / scheduling
  • Grand Canyon Education’s acquisition of Orbis Education combines the strengths of the two companies in an effort to align their expertise and better address a nationwide shortage in licensed healthcare professionals

screen_shot_2019-01-29_at_1.06.53_pm.pngGolden Gate Capital’s Acquisition of Vector Solutions

  • Vector Solutions is a leading provider of award-winning online education, safety, compliance, and performance-optimization solutions for a broad range of industries
  • Vector Solutions has an extensive and growing library of more than 8,000 courses written by over 250 subject matter experts, creating safer, more capable and compliant organizations across the commercial, education, and public sectors
  • Golden Gate Capital’s acquisition of Vector Solutions provides the necessary capital and industry expertise to broaden the Company’s portfolio of solutions and expand geographically

screen_shot_2019-01-29_at_1.07.44_pm.pngLLR’s Investment in Edlio

  • Edlio provides a cloud-based content management system which facilitates connections and interactions among teachers, administrators, parents, and students in the K-12 market
  • Edlio’s software powers over 9,700 websites for schools and districts across North America, allowing teacher and administrators to manage a school’s web presence, calendars, news alerts, classes, and homework
  • LLR’s investment will be used to support Edlio’s continued market expansion both organically and through the acquisition of industry-leading products

screen_shot_2019-01-29_at_1.08.41_pm.pngNorwest Equity Partners’ Investment in Integrative Nutrition

  • Integrative Nutrition is a leading provider of professional health coaching certification programs that empower people to improve their health and happiness
  • Integrative Nutrition is the world’s largest health coaching school, providing a global learning experience to over 100,000 students and graduates in 150+ countries
  • Norwest Equity Partners’ investment broadens its health & wellness portfolio and strengthens the Company’s ability to offer additional capabilities and knowledge to health professionals across the board

screen_shot_2019-01-29_at_1.09.37_pm.pngSerent Capital’s Investment in KEV Group

  • KEV Group is a leading provider of web-based cash accounting, payment solutions, and real-time fund management software for K-12 schools
  • KEV Group’s software empowers close to 9,000 schools across North America and manages more than $1.5 billion in funds per year, eliminating challenges of dealing with cash in schools
  • Serent Capital’s investment in KEV Group is intended to support growth initiatives, including strengthening KEV Group’s product portfolio and expanding its sales and marketing efforts to serve more schools and districts

Investment Activity Within the Broader Professional Education and Training Market is Expected to Continue in 2019.

Expansive, Multi-Vertical Market

($ billions)

  • The global Professional Education & Training market is expected to reach $30 billion by 2022P, growing at a 15.3% CAGR

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Key Market Drivers3

  • 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 Activity

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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 Drivers3

  • 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 Activity

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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 Drivers3

  • 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 Activity

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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 Companies4

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As of December 31, 2018

Education Technology & Services – Trading Comparables4

Public Comparables

As of December 31, 2018 ($ in millions)

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1. Gartner

2. PitchBook

3. IDC

4. FactSet

 

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