June 16, 2020 – Solganick & Co. has issued its latest M&A update for the education, learning, and training technology and services sector. Solganick & Co. is a data-driven technology focused investment bank and M&A advisory firm with offices in Los Angeles, San Francisco, Dallas, and Toronto. The following summarizes the report, which you can access here: Solganick & Co – Education, Learning, and Training M&A Update Q1 2020
- In Q1 2020, the total U.S. deal count in Education Technology (“edtech”) 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.
- Amidst the current downturn and expected global recession, experts predict a boom in the education, learning, and training technology sector. As countries shut down schools and companies to contain the spread of the coronavirus, a full swing to online learning is underway. Experts predict an education technology boom globally for K-12, higher education, and corporate learning and training spending.
- It is expected that the education sector may witness a faster growth than predicted. However, increased M&A activity in the sector may come in the second half of 2020, by when the outbreak is expected to be controlled.
- $87 billion of global education technology VC Funding predicted through 2030; global edtech venture capital will nearly triple over the next decade.
- Expenditure on education and training from governments, parents, individuals, and corporations continues to grow to historic levels and is expected to reach $10 trillion by 2030.
- Advanced technology will embed into delivery and learning processes: AR/VR, Robotics, Blockchain, and Artificial Intelligence.
- As of Q1 2020, there are 14 Education Technology unicorns around the world who have collectively raised over $6.6B of total funding in the last five years.