Higher Education Media and Tech deal activity saw an 11 percent improvement between 2012 and 2013, according to the Berkery Noyes Education Industry M&A Report for full year 2013. At the same time, the number of transactions in the K-12 Media and Tech segment increased six percent. Deals by notable acquirers in the K-12 Media and Tech segment throughout the past year included Amazon’s acquisition of TenMarks Education, a provider of web-based math programs; Discovery Communications’ acquisition of Espresso Group, a digital curriculum service; and Intel’s acquisition of Kno, an interactive education software company that digitizes textbooks. “Importantly in K-12 education, a transformation is occurring from the top levels on down due to technology and innovation, some elements of which have succeeded at the post secondary level,” says Mary Jo Zandy, Managing Director at Berkery Noyes. “For instance, as textbooks go digital, positive outcomes can be a digital subscription model with no rentals or used books.” Zandy says. “In addition, the new initiatives in K-12 education focus on school-level accountability and measurable results. Many of the traditional education companies will be looking to add to their capabilities through acquisition in areas of adaptive learning and common core testing and assessments.” “The large education players continue to acquire to help manage their transformation from print to digital, strengthen their presence in new emerging markets and increase their services-related revenue streams,” adds Peter Yoon, Managing Director at Berkery Noyes. “Higher-Ed institutions are looking to expand their online programs and outsource elements of the student life cycle to reduce costs with the emergence of software-based solutions. K-12 schools are implementing the rollout of tablets, while corporate training providers and childcare services companies are seeing the benefits of an improving economy.” Read the report.
By: Victor Rivero