Technology is at the forefront of providing quality education and training formats for K-12, higher education, and corporate learning environments. Virtual and online courses, gamification, artificial intelligence, and AR/VR are fast growing areas we view as the next phase of growth for the education industry.
Solganick & Co. takes a deep, data-driven dive into the education, learning and training technology (“edtech”) and services marketplace in order to identify new opportunities that will favor our clients.
A few current statistics on the “edtech” marketplace that will drive M&A decisions for our clients:
- Edtech is growing, with the total market value worldwide reaching $252 billion in 2020, according to EdtechX Global.
- The classroom connectivity gap is now closed. 99% of schools nationwide are on scalable connections with a clear path to delivering enough bandwidth for digital learning in every classroom, every day, according to EducationSuperHighway.
- Education is grossly under digitized compared with other sectors, with less than 3% of expenditure on technology (education technology vs. total global education expenditure), according to HolonIQ.
- $32 billion last decade global edtech funding.
- $87 billion of global edtech funding predicted through 2030; global edtech venture capital will nearly triple over the next decade.
- Digital education investments are expected to rise to a total of $342 billion by 2025.
- Advanced technology learning and education applications will start to hit their strides by 2025 with augmented and virtual reality and artificial intelligence becoming more integrated into core education delivery and learning processes, most likely starting in the corporate and non-accredited sectors, according to HolonIQ.
- In Q1 2020, the total U.S. deal count in education technology was consistent with that of Q3 and Q4 2019, at 160 deals announced. Total deal value increased to $3.5B in Q1 2020 from $3.28B and $1.6B in Q3 and Q4 2019. Nearly two-thirds of the deal value is accountable to majority PE deals in Q1 2020.
- The U.S. has the largest number of education technology companies in the world and the most venture capital funding for those companies. According to a recent Crunchbase research report, there were 1,444 edtech companies in the U.S. – 36% of the total number of edtech companies globally (4,027). The next largest number of edtech companies is in India (375). Europe has 712 edtech companies with 268 in United Kingdom.
Solganick & Co.’s team of experienced investment bankers can assist you with your next merger or acquisition (M&A) transaction in the education, learning, and training technology and services sector.
Transaction Case Study:
Q1 2020 – Solganick & Co. was hired by a co-founder and selling shareholder of a confidential learning and training management solutions firm to locate a financial buyer. The Solganick team quickly provided alternatives for the selling shareholder to consider along with the Board in order to select the best option that added shareholder value and provided additional expertise within the education industry. The selling shareholder was able to sell a minority control stake in the company at a premium value. In addition, the company was able to gain Board level expertise, acquisition financing, and a new means to grow the business.
The deal was completed in Q1 2020 (undisclosed value and name due to confidentiality).
Solganick & Co. was the exclusive financial advisor to the selling shareholder.
For more information or to discuss an M&A transaction in the education, learning and training technology and services industry, please contact us.