Berkery Noyes Releases First Half 2011 M&A Report For The Education Industry
NEW YORK, July 26, 2011 /PRNewswire/ -- Berkery Noyes, the leading independent investment bank specializing in the information content and technology industries, today released its Half Year Mergers and Acquisitions Trends Report for the Education Industry.
The report analyzes merger and acquisition activity in the education market over the first half of 2011 and compares it with activity in the four previous sixth-month periods. This market includes information and technology companies servicing the education industry, including K-12, post-secondary, and professional segments.
Berkery Noyes data shows that while total aggregate deal value fell 38 percent to $2.2 billion from $3.5 billion in 2nd Half 2010, transaction volume remained relatively consistent, a decrease of only seven transactions compared to the 1st Half 2010. Even in this challenging deal climate, median revenue multiples for the industry have risen for the fourth consecutive half year.
"The post-secondary sector remains in a transitional state as both investors and potential acquisition targets wait to see how recent legislation will affect their business models," said Vivek Kamath, Managing Director at Berkery Noyes. "That said, the K-12 market has shown relatively solid gains, particularly technology and service related businesses."
A deeper review of the report shows that Pearson plc was not only the most active acquirer for the first half of 2011, but also the most active acquirer in the two and a half years covered in this report, making 17 disclosed transactions. Their announced transactions this half were the purchases of Education Development International plc, SchoolNet, Inc., Smarthinking, Inc. and their equity investment in TutorVista.
Private equity and other financial acquirers claimed 51 percent of the aggregate deal value for the half year, as both Leeds Equity Partners and APAX owned Cengage Learning made significant acquisitions. This figure does not factor in the recently announced Providence Equity acquisition of Blackboard, Inc., which was announced just one day into the 2nd Half of 2011.
Unique among investment banking firms, Berkery Noyes combines independent strategic research and industry intelligence with senior information technology banking expertise. Long having been an innovator in database and research technology in M&A, Berkery Noyes has committed itself to providing more expansive and more current information on the acquisition activity in the firm's respective coverage areas.
A copy of the First Half 2011 Education Industry M&A Report is available at the Berkery Noyes website.
About Berkery Noyes
Berkery Noyes is an independent investment banking advisory firm servicing the information industry. Focused on middle-market corporations and financial sponsors, Berkery Noyes is committed to delivering a comprehensive array of industry-leading advisory services. Since its founding by Joseph W. Berkery in 1983, the firm has worked with corporate clients to grow through acquisition, divest non-core assets, and maximize shareholder returns through strategic transactions and restructurings. For private owners, Berkery Noyes helps create liquidity and execute timely exit strategies that achieve the personal and professional objectives. For more information, visit www.berkerynoyes.com.
SOURCE Berkery, Noyes & Co., LLC
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