Friday, July 26, 2013

EDUCATION INDUSTRY 1ST HALF 2013 -Mergers and Acquisitions



M&A MARKET OVERVIEW

Berkery Noyes tracked 678 transactions between 2011 and 1st Half 2013, of which 213 disclosed fi nancial terms, and calculated the aggregate transaction value to be $20.66 billion. Based on known transaction values, we project the values of 465 undisclosed transactions to be $2.70 billion, totaling $23.37 billion worth of transactions tracked over the past two and a half years. Disclosed median enterprise value multiples for all segments combined in this report during the last 30 months were 1.5x revenue and 12.0x EBITDA.

1ST HALF 2013 KEY HIGHLIGHTS

• Capita plc, a UK based provider of business process outsourcing (BPO) and professional support services, was the most active acquirer in 1st Half 2013 with four industry transactions: Creating Careers, KnowledgePool, Inc., Blue Sky Performance Improvement, and Micro Librarian Systems.

• Pearson plc was also an active acquirer in 1st Half 2013 with three transactions: Learning Catalytics LLC, IndiaCan Education Pvt Ltd and Exam Design, Inc.

• There were 33 fi nancially sponsored transactions in 1st Half 2013, with an aggregate value of $836 million, representing 24 percent of the total volume and 20 percent of the total value, respectively.

1ST HALF 2013 KEY TRENDS

• Total transaction volume in 1st Half 2013 increased by fi ve percent over 2nd Half 2012, from 128 to 135.

• Total transaction value in 1st Half 2013 decreased by 16 percent over 2nd Half 2012, from $4.57 billion to $3.84 billion.

• The median revenue multiple declined from 1.4x in 2nd Half 2012 to 1.0x in 1st Half 2013. Median value remained nearly constant during this timeframe.

• Deal volume in the K-12 Media and Tech segment increased 38 percent over the last six months, from 21 to 29 transactions, giving it a slight edge over Professional Training Institutions as the industry’s largest market segment year-to-date.

Complete Berkery Noyes Report


1 comment:

  1. Mergers and acquisitions are common conditions used to make reference to the combination of organizations. A merging results when two organizations come together to type a single company. Mergers are similar to products, not including that in mergers, current stockholders of both organizations sustain a distributed interest in the new increased enterprise. The shareholding design may differ, based on the assessment of organizations involved.

    Mergers and Acquisitions

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