Pearson and Wiley last month made their intentions clear in the fast growing US higher education online learning market through two significant acquisitions. Wiley started the ball rolling with its $220m acquisition of Chicago-based Deltak LLC from private investors. And Pearson followed up with its $650m acquisition of EmbanetCompass from an investor group led by Technology Crossover Ventures and Knowledge Universe.
EmbanetCompass and Deltak provide a full range of technology platforms and services to non-profit colleges and universities in North America including programme design and development,...
News Corporation has unveiled Amplify as the new brand and business of its education division incorporating Wireless Generation, the education technology company acquired for $360m in November 2010. Led by CEO, Joel Klein, Amplify is organised around three key areas of business:
Amplify Insight - focused on educational analytics and formative assessment through Wireless Generation. Amplify reports that Wireless Generation is currently used by 200,000 teachers and over 3m students in all 50 US states. In May 2012, Wireless Generation acquired Intel-Assess, a provider of customised assessment...
The latest Education Industry Deal Review Quarterly from Meissa reveals that the value of M&A activity across the education industry involving UK companies increased in the first half of 2012 compared to the second half of 2011. The top five deals in the first half of 2012 where the deal price was disclosed were valued at around £450m compared to around £375m for the top five deals in the first half of 2011. As in 2011, Pearson remains the most active UK acquirer, accounting for two deals in the US worth around £150m, although the company was trumped by Montagu Private Equity’s £200m...
February was a good month for the share prices of UK companies with all or a significant part of their business derived from the education sector (see table). A major contributory factor was the annual results posted by seven of the listed companies covered by The Assignment Report's Monthly Sharewatch, published today.
Leading the way was Pearson who reported a 7% increase in revenue at its education business to £4.4bn in FY11 and an adjusted operating profit up 12% to £755m. And even those companies posting falls in revenue and profit were upbeat about the current year.
RM, the bellweather...
Bertelsmann's role as the anchor investor in the recently launched $100m University Ventures Fund signals the arrival of the German media giant as a player in the global education market - a market dominated over the last 18 months by Pearson and private equity firms. The new fund aims to form partnerships with leading universities to jointly develop and deploy online higher education programmes and build scalable education platforms in Europe and the US. Unlike other players in the market, Bertelsmann's focus is entirely on digital and the opportunities technology provides in education. Last year,...
Private equity firms and Pearson dominate 2011’s global education deals says The Assignment Report's Education Industry Deal Review for Q4 2011 published on 20 January 2012. Top of the 2011 deal list is Hellman & Friedman’s acquisition of SunGard Higher Education, the US-based software company, for $1,775m from SunGard Data Systems. Announced in August 2011, the transaction received regulatory approval in December 2011. This deal followed Providence Equity Partners acquisition of Blackboard, the Washington DC-based VLE technology company for $1,640m.
During 2011 Pearson spent over...
December 2011's issue of the Assignment Report is now available. Included in this month’s issue:
Half-year operating profit down 80% at Findel’s education supplies business.
Mouchel agrees revised banking facilities.
Pearson to acquire Global Education and Technology for $155m.
Potential buyers circle the College of Law.
Wey Education pulls out of acquisition of Place Group.
PWC seeks buyers for NEC and other LSN businesses.
Knewton to integrate its platform with Pearson’s HE content and courses.
Archipelago Learning integrates EducationCity’s US operations.
Meissa has published the first issue of The Assignment Report's Education Industry Deal Review covering Q3 2011. The report summarises deal activity across the UK education industry together with significant transactions in the US and other key international education markets. The Education Industry Deal Review is provided as part of the annual subscription to The Assignment Report. For a free trial visit www.theassignmentreport.com
Here are the top ten largest education industry deals in the last 12 months to 30 September 2011.
Pearson's $400m acquisition of Connections Education, the Baltimore-based K-12 virtual schools business has taken Pearson's education spend to over $1,800m since the company sold its 61% stake in Interactive Data for $2,000m in May 2010. There's little doubt that Pearson's acquisition spree has stimulated the interest of other trade and private equity buyers in other opportunities across the education industry in the US and elsewhere. And last month's announcement by McGraw-Hill to spin-off its education business was in part due to Pearson's position as the number one global education company....
Last month saw further acquisition activity across the education sector in the UK and US including Cox & Kings £312m purchase of education and activity tour operator Holidaybreak, EduTone's acquisition of Global Grid for Learning from CUP and Providence's $1.64bn acquisition of Blackboard. Half year results from Pearson and Promethean reflected challenging conditions in the US and a profit warning from RM and half year results from Electric Word confirmed that the UK education market remains tough. Further analysis is available in the August edition of The Assignment Report
The Assignment Report is the leading market intelligence subscription newsletter for the UK education industry. Published monthly since 2005, the Assignment Report provides an in-depth analysis on the companies operating throughout the sector.