Berkery Noyes Releases 2011 Education Industry Mergers & Acquisitions Report
NEW YORK, Jan. 23, 2012 /PRNewswire/ -- Berkery Noyes, an independent middle market investment bank, today released its 2011 Full Year Mergers and Acquisitions trend report for the Education Industry.
The report analyzes the sector for 2011 and compares it with similar activity in 2009 and 2010. This market includes information and technology companies servicing the Education Industry, including the K-12, Post-Secondary, and Corporate and Professional segments.
Providence Equity Partners' acquisition of Blackboard for $1.71 billion, completed in the third quarter of 2011, was the second largest Education deal in 2011. This transaction exemplifies how interactive learning and the evolving delivery of content are changing the Education marketplace. One of the most prolific acquirers by value between 2009 and 2011 was Providence Equity Partners, with a combined total of over $3 billion in the industry.
The median revenue multiple remained nearly the same, moving from 1.9x in 2010 to 1.8x in 2011. However, the median EBITDA multiple increased from 9.7x to 11.1x. Using a logarithmic scale, Berkery Noyes determined that nearly one third of Education companies acquired in 2011 had transaction values of $4.5 million to $54.6 million.
In addition, Apple's recently announced iPad textbook initiative illustrates the increasing possibilities for M&A in Education technology.
"2011 was a successful year for M&A in the education industry across most sectors in terms of activity and valuations," said Berkery Noyes managing director Mary Jo Zandy. "This momentum has further built in the first quarter of 2012. Areas of most interest to acquirers at the present time are online education, education services and education technology companies. Still, consolidation is ongoing among print-based education businesses, and the anticipated effects of common core standards implementation are likely to accelerate this trend."
Berkery Noyes specializes in structuring debt and equity transactions in the $25 million to $500 million range, a market that is enjoying a surge in activity. 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 current information. The firm's research teams publish acquisition activity in the respective sectors they follow on MandAsoft.com.
A copy of the FULL YEAR 2011 EDUCATION INDUSTRY M&A TREND 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 their personal and professional objectives. For more information, visit www.berkerynoyes.com.
Contact Information:
Peter Wilson
Berkery Noyes
646-442-7966
[email protected]
SOURCE Berkery Noyes
Share this article