Berkery Noyes Releases Education Industry M&A Report For Full Year 2012

   Berkery Noyes Releases Education Industry M&A Report For Full Year 2012

PR Newswire

NEW YORK, Jan. 17, 2013

NEW YORK, Jan. 17, 2013 /PRNewswire/ --Berkery Noyes, an independent
mid-market investment bank, today released its full year 2012 mergers and
acquisitions trend report for the Education Industry.

The report analyzes M&A activity in the sector during 2012 and compares it
with data covering 2010 and 2011. This market includes information and
technology companies servicing the Education Industry, including the K-12,
Post-Secondary, Childcare Services, and Corporate and Professional Training

Berkery Noyes' research showed that transaction volume remained nearly
constant on a year-to-year basis. However, aggregate transaction value fell 44
percent, from $11.93 billion in 2011 to $6.66 billion in 2012. The median
revenue multiple between 2011 and 2012 stayed the same at 1.6x, while the
median EBITDA multiple declined from 12.0x to 10.3x.

There was an uptick in private equity activity in the Education Industry over
the past twelve months. Financial sponsors accounted for 30 percent of
transaction volume and 63 percent of value in 2012, compared to 25 percent of
volume and 51 percent of value in 2011. Providence Equity Partners was one of
the most active private equity firms in 2012, completing three industry

The two highest value education deals in 2012 both occurred in the fourth
quarter. This consisted of the announced sale of McGraw-Hill Education to
Apollo Global Management for $2.62 billion and Pearson's acquisition of
Embanet Compass for $650 million. Higher-Ed Media and Tech was the segment
with the most notable rise in transaction volume, improving 59 percent since
2011. One of the segment's largest deals over the course of 2012 was John
Wiley & Sons' acquisition of for $220 million, which was announced
in the fourth quarter as well.

"As the migration to digital formats and delivery continue, the potential for
transformation in the education industry that is succeeding at the post
secondary level will continue to be substantial in all the education
subsectors," stated Peter Yoon, Managing Director at Berkery Noyes. "In
particular, the digital subscription model that is becoming more prevalent
across the entire education spectrum, from K12 to professional/corporate
training, is especially attractive to acquirers due to the visibility and
recurring nature of the revenues."

Meanwhile, the number of transactions in the K-12 Media and Tech segment
declined 15 percent in 2012, following a 28 percent rise from 2010 to 2011.
Deal volume in the Professional Training Institutions segment experienced a 14
percent yearly increase, edging past both the K-12 and Higher-Ed Media and
Tech segments as the industry's most active market sector.

"Acquirers are increasingly interested in e-learning solutions that will both
complement and build upon their existing products," said Mary Jo Zandy,
Managing Director at Berkery Noyes. "With the implementation of the common
core state standards and the related digital infrastructure, the value of
e-learning will be enhanced."

A copy of the EDUCATION INDUSTRY M&A REPORT FOR FULL YEAR 2012 is available at
the Berkery Noyes website.

Berkery Noyes specializes in mergers and acquisitions advisory, debt and
equity financing, and financial consulting services for companies in the $10
million to $500 million range, a market that is enjoying a surge in activity.
The firm's research teams publish acquisition activity in the respective
sectors they follow on

About Berkery Noyes

Berkery Noyes is an independent investment banking advisory firm servicing the
information industry. 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. Securities services are offered through
Berkery Noyes Securities, LLC. For more information, visit

Contact Information:
Peter Wilson
Berkery Noyes

SOURCE Berkery Noyes

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