January 15, 2024

Shifting Gears: Mergers and Acquisitions Reshape the Education, Learning, and Training Technology Landscape in 2023 and Beyond

The Education, Learning, and Training Technology sectors went through a transformative dance in 2023. While the post-pandemic dust settled, a new rhythm of mergers and acquisitions emerged, reflecting a changing landscape and strategic adjustments. Let’s take a spin through the key trends and transactions that marked 2023 and peek into the potential moves of 2024.

2023: Consolidation and Convergence

Consolidation in key segments: Large players sought to expand their reach and offerings. Examples include Instructure’s acquisition of Parchment for $835 million, strengthening its grip on the student success market, and Learneo’s purchase of Barnes & Noble Digital Student Solutions, consolidating resources in online learning tools.

• Focus on AI and personalization: The power of AI attracted strategic buyers. Curriculum Associates’ acquisition of SoapBox Labs, an AI-powered voice engine, and KT’s minority stake in Mathpresso highlight the growing value of personalized learning solutions.
• Strategic partnerships for reach and expertise: Collaboration took center stage. ACI Learning’s acquisition of Infosec Learning brought together cybersecurity training expertise, while the University of Idaho’s bold move to acquire University of Phoenix signaled a shift towards non-traditional education models.

2024 Outlook

As we enter 2024, several factors will continue to shape the M&A landscape:

• Cautious optimism: Market uncertainties might cool down mega-deals, but strategic acquisitions targeting specific strengths and filling gaps are likely to continue.
• Focus on emerging technologies: AR/VR, gamification, AI, and microlearning tools could attract investment as the demand for engaging and adaptable learning experiences grows.
• Global expansion: Edtech will increasingly look beyond national borders, with cross-border acquisitions facilitating access to new markets and diverse user bases.

Top 10 Education, Learning and Training Technology M&A Transactions of 2023:

1. Instructure acquires Parchment for $835 million: This deal strengthens Instructure’s position in the student success market, adding Parchment’s credential verification and e-portfolio tools.

2. Learneo acquires Barnes & Noble Digital Student Solutions for $300 million: This consolidation brings B&N’s expansive online learning resources and LMS offerings under the Learneo umbrella.

3. Frontline Education acquired by Roper Technologies for $3.7 billion: This move significantly expands Roper’s presence in K-12 software solutions, adding Frontline’s administrative and financial management tools.

4. EverFi acquired by Blackbaud for $750 million: Blackbaud leverages EverFi’s online compliance training programs to bolster its offerings for non-profit and educational institutions.

5. Multiverse Expert acquired by Power-All Networks for $120 million: This acquisition brings Multiverse Expert’s metaverse learning platform and expertise to Power-All’s portfolio of workforce development solutions.

6. ACI Learning acquires Infosec Learning for undisclosed amount: This strategic partnership creates a leading cybersecurity training provider, combining ACI’s corporate focus with Infosec’s individual learner offerings.

7. University of Idaho acquires University of Phoenix: This groundbreaking move signals a potential shift towards non-traditional education models, with traditional universities expanding into online learning spaces.

8. Curriculum Associates acquires SoapBox Labs for undisclosed amount: Curriculum Associates gains access to SoapBox Labs’ AI-powered voice engine, enhancing its personalized learning capabilities.

9. KT (Korean Telecom) acquires minority stake in Mathpresso for $8 million: This investment highlights the growing interest in AI-powered math tutoring solutions and their potential for global expansion.

10. McGraw-Hill partners with OpenStax to create affordable, open-source textbooks: While not technically an M&A, this strategic partnership signifies a trend towards collaboration and resource sharing in the textbook market.

Examples of potential 2024 M&A targets:

• Niche AI-powered tutoring platforms catering to specific subject areas or skill sets.
• Learning content creators collaborating with microlearning platforms to reach wider audiences.
• VR/AR companies partnering with educational institutions to develop immersive learning experiences.

Conclusion:

The Education, Learning, and Training Technology M&A game is changing hands, with consolidation, technological shifts, and a global perspective driving the next round of deals. As we watch this dynamic market unfold in 2024, one thing is certain: the learning landscape will continue to be reshaped by strategic partnerships and acquisitions, ultimately benefiting learners and educators alike.

About Solganick & Co.

We are a data-driven investment bank and M&A advisory firm that focuses on software and technology services industry verticals. Our Education, Learning, and Training Technology M&A practice is our fastest-growing sector coverage. For more information on the Education, Learning, and Training Technology sector, or to inquire about an M&A transaction, please contact us

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