Education Technology Insight - Raymond James · 2020-01-22 · EDUCATION TECHNOLOGY Q4 ’19 UPDATE...
Transcript of Education Technology Insight - Raymond James · 2020-01-22 · EDUCATION TECHNOLOGY Q4 ’19 UPDATE...
EDUCATION TECHNOLOGY Q4 ’19 UPDATE
Education Technology InsightAdministrative Solutions // Admissions & Enrollment // Career & Recruiting // Commerce, Payments & Financial Aid Management // Communications & IT Services // Content & Delivery // Data Analytics & Assessments // Online Learning //Learning & Classroom Technology // Tutoring, Training & Certification
Q4 2019
INVESTMENT BANKING
Garrett DeNinnoManaging Director
617.624.7018
garrett.deninno@
raymondjames.com
Jon SteeleCo-Head, Technology & Services
617.624.7020
jon.steele@
raymondjames.com
Christian CliffordVice President
617.624.7077
christian.clifford@
raymondjames.com
U.S. Coverage
Laura MaddisonManaging Director
44.203.7985.705
laura.maddison@
raymondjames.com
European Coverage
EDUCATION TECHNOLOGY Q4 ’19 UPDATE
2
Education Technology M&A & Capital Raising Activity
Number of U.S. Deals by Quarter(1)
($ in millions)
Online Learning24%
Career & Recruiting
19%
Administrative Solutions14%
Learning & Classroom Technology
11%
Communications & IT Services
7%
Tutoring, Training & Certification
7%
Content & Delivery7%
Data Analytics & Assessments
7%
Commerce, Payments & Financial Aid Management
1%
Admission & Enrollment
1%
Companies focused on the Corporate and Higher Ed
markets which comprised ~53% of transactions announced
in Q4 2019
The industry saw a heathy mix of activity across
all domains in Q4 2019, with Online Learning
comprising 24% of total transactions
K-1217%
Corporate53%
Higher Ed30%
Dollar Volume of U.S. Deals by Quarter(1)(2)
Q4 2019 U.S. Deals by Sector Q4 2019 U.S. Deals by Domain
1.Source: PitchBook
2.Comprised of deals where the $ amount of investment was disclosed
35 2921 17 19 14
24
26
1726
21 1812
13
147
115
137
115
156
137126
208
161
184
153
193
163 163
0
50
100
150
200
250
Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19
Strategic PE - Majority / Sale PE - Minority
$296$550
$2,720
$2,100
$1,310
$158 $156
$3,230$2,380
$1,880
$421
$534
$2,150
$2,700
$1,980
$999
$1,090
$963
$1,430
$972
$6,226
$4,910
$5,599
$3,611
$2,675
$1,620
$3,278
$0
$2,000
$4,000
$6,000
$8,000
Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19
Strategic PE - Majority / Sale PE - Minority
Over 160 transactions were announced in Q4 2019,
approximately 77% of which were minority PE deals
Nearly $3.3 billion in Q4 2019 in announced
transaction value mainly from majority PE deals
EDUCATION TECHNOLOGY Q4 ’19 UPDATE
39.3x
28.5x24.3x 22.9x 22.6x
10.9x 10.8x
30.5x
8.6x
25.0x21.0x 19.2x
8.9x 10.7x
0.0x
10.0x
20.0x
30.0x
40.0x
50.0x
Chegg, Inc. Sylogist Ltd. Blackbaud, Inc. Learning TechnologiesGroup plc
Constellation Software Inc. ReadyTech HoldingsLimited
Oracle Corporation
2019 2020
3
Market Valuation Metrics
Education Technology TEV / Revenue
Education Technology TEV / EBITDA(1)(2)
Education Services TEV / Revenue
Education Services TEV / EBITDA(1)(2)
1.EBITDA multiples <0.0x or >40.0x are considered Not Meaningful (NM)
2.Omits companies where multiples for both FY2019 and FY2020 are either not available or not
meaningful
17.5x
12.2x11.2x 10.6x
8.1x 7.8x 6.9x6.0x
5.1x 4.9x 4.7x 4.3x2.9x
7.0x
9.6x 10.1x 8.8x
6.4x 7.1x5.9x 5.2x 5.0x 4.7x 4.4x NA
2.3x
0.0x
4.0x
8.0x
12.0x
16.0x
20.0x
GSX TecheduInc.
Chegg, Inc. TylerTechnologies,
Inc.
Workday, Inc. Pluralsight,Inc.
LearningTechnologies
Group plc
Instructure,Inc.
ConstellationSoftware Inc.
OracleCorporation
Blackbaud,Inc.
Sylogist Ltd. ReadyTechHoldingsLimited
2U, Inc.
2019 2020
3.9x
2.2x1.9x
1.7x 1.6x
1.0x0.7x 0.7x
3.0x
2.1x1.9x
1.7x 1.5x
1.0x0.7x 0.6x
0.0x
1.5x
3.0x
4.5x
Aspen Group, Inc. Rosetta Stone Inc. John Wiley & Sons, Inc. Pearson plc Tribal Group plc Houghton MifflinHarcourt Company
Scholastic Corporation K12 Inc.
2019 2020
9.7x8.9x 8.7x 8.5x 8.5x
5.5x
9.6x8.8x
7.0x7.9x 7.5x
4.8x
0.0x
8.0x
16.0x
John Wiley & Sons, Inc. Pearson plc Houghton Mifflin HarcourtCompany
Tribal Group plc Scholastic Corporation K12 Inc.
2019 2020
EDUCATION TECHNOLOGY Q4 ’19 UPDATE
($ in millions, except per share data)+DC49C57C16:BU47C16:BU49C16:BU51C16:BU49C16:BUC16:BU49Stock TEV
Price Market Ent Revenue EBITDA(2) Rev Growth EBITDA Margin(2)
Company(1) 12/31/19 Cap Value 2019E 2020E 2019E 2020E 18A/19E 19E/20E 2019E 2020E
Education Technology
Oracle Corporation $52.98 $173,316 $200,416 5.1x 5.0x 10.8x 10.7x 0% 2% 47% 46%
Workday, Inc. 164.45 39,010 38,454 10.6 8.8 NM NM 28% 20% 21% 21%
Constellation Softw are Inc. 972.34 20,605 21,052 6.0 5.2 22.6 19.2 14% 17% 27% 27%
Tyler Technologies, Inc. 300.02 12,394 12,225 11.2 10.1 NM NM 17% 11% 28% 29%
GSX Techedu Inc. 21.86 5,153 5,035 17.5 7.0 NM NM 399% 151% 11% 13%
Chegg, Inc. 37.91 4,863 4,974 12.2 9.6 39.3 30.5 27% 27% 30% 31%
Blackbaud, Inc. 79.60 3,818 4,414 4.9 4.7 24.3 25.0 6% 5% 20% 19%
Pluralsight, Inc. 17.21 2,420 2,541 8.1 6.4 NM NM 36% 26% NM NM
Instructure, Inc.(3) 48.21 1,869 1,791 6.9 5.9 NM NM 23% 18% NM NM
2U, Inc. 23.99 1,523 1,664 2.9 2.3 NM NM 39% 27% NM NM
Learning Technologies Group plc 1.89 1,297 1,331 7.8 7.1 22.9 21.0 43% 9% 34% 34%
Sylogist Ltd. 7.59 181 144 4.7 4.4 28.6 8.6 8% 8% 16% 51%
ReadyTech Holdings Limited 1.23 98 111 4.3 3.6 10.9 8.9 NA 20% 40% 41%
Mean 7.9x 6.2x 22.8x 17.7x 53% 26% 27% 31%
Education Technology Median 6.9x 5.9x 22.9x 19.2x 25% 18% 27% 30%
Education Services
Pearson plc $8.44 $6,571 $8,682 1.7x 1.7x 8.9x 8.8x (2%) 1% 19% 19%
Graham Holdings Company 638.99 3,421 3,805 NA NA NA NA NA NA NA NA
John Wiley & Sons, Inc. 48.52 2,728 3,597 1.9 1.9 9.7 9.6 3% 3% 20% 20%
Cengage Learning Holdings II, Inc. 12.75 788 2,797 NA NA NA NA NA NA NA NA
Houghton Miff lin Harcourt Company 6.25 777 1,378 1.0 1.0 8.7 7.0 6% 2% 11% 14%
Scholastic Corporation 38.45 1,336 1,167 0.7 0.7 8.5 7.5 (1%) 3% 8% 9%
K12 Inc. 20.35 798 682 0.7 0.6 5.5 4.8 5% 3% 12% 13%
Rosetta Stone Inc. 18.14 436 408 2.2 2.1 NM NM 5% 8% 3% 5%
Aspen Group, Inc. 8.00 164 175 3.9 3.0 NM 31.2 44% 30% 5% 10%
Tribal Group plc 0.82 171 169 1.6 1.5 8.5 7.9 5% 4% 19% 19%
Education Services Median 1.7x 1.6x 8.5x 8.3x 5% 3% 12% 13%
Overall Median 4.5x 4.0x 10.2x 9.6x 9% 8% 20% 19%
Source: CapIQ and Equity Research
(1) Sorted by Enterprise Value
(2) EBITDA multiples <0.0x or >40.0x, and EBITDA margins <0% are considered Not Meaningful (NM)
(3) On December 4, 2019, Instructure announced intent to be acquired by Thoma Bravo
4
Public Comparables & Financings
Public Comparables
Public Financings
Date Capital
Announced Issuer Transaction Type Sector Raised ($MM)
Equity Offerings
11/21/2019 GSX Techedu Follow-on Offering Content & Distribution $252.0
9/9/2019 Laureate Education Follow-on Offering Online Learning 252.8
6/12/2019 Laureate Education Follow-on Offering Online Learning 153.0
6/5/2019 GSX Techedu IPO Content & Distribution 207.9
4/17/2019 ReadyTech Holdings Limited IPO Content & Distribution 35.9
3/22/2019 Chegg Corporate Bond Offering Content & Distribution 700.0
3/7/2019 Pluralsight Corporate Bond Offering Learning Management Systems 550.0
3/6/2019 Pluralsight Follow-on Offering Learning Management Systems 396.6
5/22/2018 2U Follow-on Offering Content & Distribution 345.0
5/21/2018 Graham Holdings Corporate Bond Offering Content & Distribution 400.0
4/29/2018 Pearson plc Corporate Bond Offering Content & Distribution 566.4
4/24/2018 Learning Technologies Follow-on Offering Online Learning 118.7
EDUCATION TECHNOLOGY Q4 ’19 UPDATE
5
Announced
DateBuyer Target Sector Domain
Transaction
SizeCountry Comments
Dec-19 Corporate
Learning &
Classroom
Technology
ND USA
• ePath Learning is a developer of a cloud-based
learning management system designed to
manage training and create learning
opportunities to improve business performance
Dec-19Immersive
Learning Group
Corporate
Learning &
Classroom
Technology
ND UK
• The Pearson Immersive Learning group is a
provider of research and pioneering technology
for mixed reality learning
Dec-19 CorporateCareer &
RecruitingND USA
• Mimir is developer of web-based tool designed
to enable instructors to teach computer science
courses of any scale without compromising the
quality of education for students
Dec-19 CorporateCareer &
RecruitingND USA
• RVA Recruiters are providers of a network for
recruiting and human resources professionals,
offering professional development, continuing
education, and peer networking
Dec-19 Corporate
Tutoring,
Training &
Certification
ND USA
• Linux Academy is developer of a cloud
computing education platform designed to test
students in live server environments
Dec-19 Higher EdContent &
DeliveryND USA
• eScience Labs is a provider of products intended
to provide students with hands-on laboratory
experience to students engaged in online and
blended learning
Dec-19 CorporateCareer &
RecruitingND UK
• Adepto is a developer of an engagement
platform designed for organizations to identify,
engage, attract and manage workers by
providing a single view and access to all the
talent available
Dec-19 Higher EdAdministrative
SolutionsND USA
• Parchment is a provider of an online educational
record management platform designed to
simplify the process of sharing academic
credentials online
Dec-19 K-12Content &
DeliveryND USA
• SchoolSpire is a provider of instructional
management system with fully integrated
modules for curriculum, assessment ,
reporting/advanced analytics to school districts
Dec-19 Higher EdAdministrative
SolutionsND USA
• YouVisit provides a web-based platform to
create and share virtual tours to create engaging
digital experiences for millions of students,
parents, alumni and other institutional partners
Dec-19 K-12Data Analytics &
AssessmentsND USA
• Tembo develops public assessment and
accountability reporting tools for data and
reporting on accountability systems, school
choice, assessments, and school quality &
equity
Dec-19 CorporateData Analytics &
AssessmentsND USA
• Caliper provides talent management consulting
services offering assessment, corporate culture,
and team development solutions by partnering
with organizations
Education Technology: Selected Recent Strategic M&A Activity
EDUCATION TECHNOLOGY Q4 ’19 UPDATE
6
Announced
DateBuyer Target Sector Domain
Transaction
SizeCountry Comments
Dec-19 Higher EdCommunications
& IT ServicesND USA
• Thruline Marketing develops marketing
campaigns and lead generation strategies to
help higher education institutions attract a higher
number of students
Nov-19 CorporateCareer &
RecruitingND Ireland
• Clinch provides SaaS based personalized
creative technology platform designed to deliver
ad experiences tailored to the individual
throughout the consumer journey
Nov-19 Higher Ed Online Learning $51M Ireland
• 3D4Medical develops medical, educational,
health and fitness applications for professional
reference, as well as student and patient
education
Nov-19 Higher EdContent &
DeliveryND USA
• Get Prepped provides exam preparation
material which includes video access,
questionnaires, live classes, personal tutoring for
LSAT exams
Nov-19 Higher EdAdministrative
SolutionsND USA
• QuadWrangle is a developer of an automated
engagement management platform for alumni
engagement and fundraising
Nov-19 K-12Admission &
EnrolmentND USA
• Smart Choice provides a K-12 school admission
and online application management platform
included a complete suite of tools to
accommodate end-to-end workflows
Nov-19 Corporate Online Learning ND UK
• Katacoda is an operator of a software training
platform which engages in providing interactive
training on Kubernetes architecture, machine
learning, TensorFlow and operating systems
Nov-19 K-12 Online Learning ND USA
• Education.com is a provider of an online
parenting platform offering a guided curriculum
which enables preschool & elementary children
develop essential skills and reach full academic
potential
Nov-19 CorporateAdministrative
SolutionsND Canada
• Collage Technologies offers a cloud-based
management platform which automates human
resources paperwork like onboarding new
employees, completing tax forms, storing
documents
Nov-19 Higher Ed Online Learning $29M USA
• Lumerit is a provider of an education planning
platform which offers customized degree plans
as per budget and flexible college courses
Oct-19 CorporateCareer &
RecruitingND USA
• ENGAGE is a provider of an artificial
intelligence-based talent recruitment platform
which combines talent mapping, competitive
intelligence, passive candidate sourcing, etc.
Oct-19 Higher EdAdministrative
SolutionsND Canada
• Destiny Solutions is a developer of SaaS-based
student lifecycle management software designed
to manage continuing education and non-degree
programs
Education Technology: Selected Recent Strategic M&A Activity (Cont’d)
EDUCATION TECHNOLOGY Q4 ’19 UPDATE
7
Announced
DateBuyer Target Sector Domain
Transaction
SizeCountry Comments
Oct-19 K-12Data Analytics &
AssessmentsND USA
• Schoolzilla is a provider of a cloud-based data
management and visualization platform
designed to provide a hosted service that
connects, cleans, and visualizes all of a school's
data sources
Oct-19 CorporateCareer &
RecruitingND USA
• Talent Response, LLC operates an online job
listing platform for independent consultants
Oct-19 K-12
Learning &
Classroom
Technology
ND USA
• Schoology is a provider of K-12 learning
management platform which all the tools for
personalized education and improving student
outcomes
Oct-19 Higher Ed
Tutoring,
Training &
Certification
$465M USA
• Adtalem Educacional do Brasil S/A operates
educational institutions which offers graduate
and undergraduate programs
Oct-19 CorporateCommunications
& IT ServicesND UK
• Appitierre is an e-learning company which
develops cloud authoring tool and SMB-focused
learning management system
Oct-19 K-12Administrative
SolutionsND USA
• ESGI, LLC develops software as a service
educational software for conducting one-on-one
assessments for childhood students
Oct-19 K-12Administrative
SolutionsND USA
• Accelify provides educational management
systems for districts to manage their Medicaid
reimbursement programs and facilitate special
education program operations & compliance
Oct-19 Higher Ed
Tutoring,
Training &
Certification
ND UK
• EdComs provides educational and CSR
programmed for schools and colleges which
specializes in the communications and
marketing sector
Oct-19 CorporateCareer &
RecruitingND Canada
• Hazel is a provider of cultural engagement
platform which is integrated with Slack and
offers personalized, science-based, and large-
scale virtual coaching
Education Technology: Selected Recent Strategic M&A Activity (Cont’d)
EDUCATION TECHNOLOGY Q4 ’19 UPDATE
Announced
DateInvestor Target Sector Domain
Transaction
SizeCountry Comments
Dec-19 CorporateCareer &
Recruiting$25M Israel
• Gloat is a developer of an artificial intelligence
powered anonymous career development
platform designed to help millennials to find a
career
Dec-19 Higher Ed Online Learning $11M USA
• Springboard is a developer of an educational
platform designed to make qualitative education
accessible to everyone by offering online
courses and mentor-based learning
Dec-19 Higher Ed
Learning &
Classroom
Technology
$4M USA
• Knowledge to Practice is a provider of an
education technology startup designed to help
clinical leaders to deliver the personalized
curriculum
Dec-19 CorporateAdministrative
SolutionsND USA
• HR Acuity is an operator of a SaaS platform
designed to mitigate employee-related risk
through its workflow automation, investigation,
case management and business intelligence
platform
Dec-19 Corporate Online Learning $6M USA
• Verb is a provider of an online leadership
development platform designed to deliver whole-
person development via experiential learning
Dec-19 Corporate
Learning &
Classroom
Technology
$35M USA
• EdCast is a developer of AI powered knowledge
cloud software designed for unified discovery,
personalized learning and knowledge
management across the enterprise
Dec-19 Corporate Online Learning $1M USA
• Bamboo Learning develops an education-
focused software intended to become a much-
trusted guide to lifelong learning using voice-first
devices and software
Dec-19 Higher Ed
Learning &
Classroom
Technology
$2022M USA
• Instructure Inc provides cloud-based learning
management platform for academic institutions
and companies worldwide
Dec-19 Higher Ed Online Learning $30M USA
• Duolingo provides a language-learning platform
designed to help people to read, listen and
speak multiple languages
Dec-19 CorporateCareer &
Recruiting$1M USA
• Fulcrum Workforce Solutions develops a hiring
platform intended to connect enterprise
companies with the top online gig and freelance
talent providers while maintaining full compliance
Nov-19 K-12
Learning &
Classroom
Technology
$3M Nigeria
• uLesson provides educational services aimed at
helping African students by integrating mobile
platforms, SD cards, culture-specific curriculum
and a network of tutors
Nov-19 Higher EdCommunications
& IT Services$6M USA
• Verto Education provides college education
services intended to make higher education
accessible by offering accredited first-year
education by partnering with colleges
Education Technology: Selected Recent Private Equity Activity
Multiple Investors
Multiple Investors
8
Multiple Investors
EDUCATION TECHNOLOGY Q4 ’19 UPDATE
9
Announced
DateInvestor Target Sector Domain
Transaction
SizeCountry Comments
Nov-19 Higher EdContent &
Delivery$9M UK
• Perlego provides an online platform that offers
academic and professional e-books under a
monthly subscription fee
Nov-19 K-12Content &
DeliveryND USA
• n2y is the developer of a cloud-based special
education publishing platform with offerings that
include a weekly newspaper (News-2-You),
standards-based curriculum and a dynamic
symbol set
Nov-19 Corporate
Commerce,
Payments &
Financial Aid
Management
$157M USA
• Guild Education has developed an education
platform aiming to bridge the gap between
education and employment
Nov-19 Corporate Online Learning $15M USA
• Cybrary Inc. offers free and open source online
information technology, computer training, and
cyber security training services for beginners,
experienced professionals, and families
Nov-19 Corporate Online Learning ND UK
• Sponge is a provider of digital learning intended
for creative workplace training to enhance
working professionals' knowledge and skill sets
on the job
Nov-19 CorporateCareer &
Recruiting$2M USA
• Jobiak is the developer of AI based recruitment
platform designed to quickly publish job postings
by identifying the attributes that Google
requires, and then restructuring the Google tags
Nov-19 Corporate Online Learning $11M Germany
• Coachhub is the developer of mobile coaching
cloud platform intended to provide personalized
coaching for employees of all career levels
Nov-19 Corporate Online Learning ND USA
• Kajabi provides an all-in-one platform that
makes it easy to create online courses, launch
marketing campaigns, build landing pages and
design the perfect website
Nov-19 Corporate Online Learning $40M UK
• Immersive Labs designs and develops cloud-
based cyber assessment platform to measure
and improve technical cyber skills of the
company
Nov-19 CorporateData Analytics &
Assessments$8M USA
• Cultivate is a digital leadership coaching
platform that leverages artificial intelligence (AI)
to provide in-the-moment feedback and
management coaching within the enterprise
Nov-19 K-12 Online Learning $57M China
• Codemao develops and operates an online
programming education platform for teens aged
between 6-16
Nov-19 CorporateData Analytics &
Assessments$13M USA
• Centrical develops and provides an enterprise
gamification platform designed to help in
learning through digital motivation of the
workforce
Education Technology: Selected Recent Private Equity Activity (Cont’d)
Multiple Investors
Multiple Investors
Multiple Investors
EDUCATION TECHNOLOGY Q4 ’19 UPDATE
10
Announced
DateInvestor Target Sector Domain
Transaction
SizeCountry Comments
Oct-19 Higher EdCommunications
& IT Services$4M USA
• Campuswire offers a messaging tool designed
for campus communication (Campuswire) which
helps brings all class discussions, Q&A and
announcements into one place
Oct-19 CorporateCareer &
Recruiting$22M France
• Welcome to the Jungle is an online job platform
intended to assist companies through the
process of employment by facilitating resume
screening, application tracking, onboarding, etc.
Oct-19 CorporateAdministrative
Solutions$32M Switzerland
• Coople operates an online staffing platform with
an algorithm that matches the need of
employees for shift or hour-based work with the
demand of companies
Oct-19 K-12 Online Learning $50M China
• Hetao 101 operates an educational platform
designed to offer technical programming
courses to prepare young students for higher
education
Oct-19 Corporate Online Learning ND USA
• MobLab Inc. provides an economics game and
experiment platform designed to offer interactive
teaching and learning in social sciences and
management
Oct-19 Higher EdAdministrative
Solutions$3M USA
• Stellic provides an integrated advising and
planning platform designed to enable students to
plan their college journey
Oct-19 Corporate
Tutoring,
Training &
Certification
ND USA
• CPI provides training and consulting in behavior
management and dementia care for human
service professionals for managing disruptive
and assaultive behaviors
Oct-19 Higher Ed
Tutoring,
Training &
Certification
ND Mexico
• Lottus Education provides higher education
services which includes high-school,
undergraduate, and graduate educational
programs and services online, and on-campus
under UTC and ULA
Oct-19 CorporateCommunications
& IT Services$90M USA
• Grammarly, Inc. is a provides an AI-driven
online digital writing assistant for users to find
and correct writing mistakes
Oct-19 CorporateCareer &
Recruiting$11M USA
• Utmost Software, Inc. develops talent
management software which consolidates talent
management systems, streamlines on and off
boarding processes, and compliance processes
Oct-19 CorporateAdministrative
Solutions$5M India
• Greytip Software is a provider of a human
resource management software that helps
businesses to automate employee information
management, payroll and statutory compliance,
leave, etc.
Oct-19 CorporateCareer &
Recruiting$3M USA
• Momentum Learning, Inc. provides training to
students focusing on the skills they need for the
technology industry and modern workplace
Oct-19 Higher Ed Online Learning $2M Canada
• Korbit is a provider of online education using
intelligent tutors which use AI to teach students
through interactive exercises and conversations
Education Technology: Selected Recent Private Equity Activity (Cont’d)
Multiple Investors
EDUCATION TECHNOLOGY Q4 ’19 UPDATE
11
Representative Raymond James Education Technology Transactions
Cloud-Based Learning Platform
March 2019 / May 2018
$367 Million
Follow-on Offering
SaaS Learning Management Software
October 2015
$70 Million
Initial Public Offering
eTextbooks & Connected Learning
November 2013
$187 Million
Initial Public
Offering
Interactive Classroom Technology
July 2013 / July 2010
$175 Million
Credit Facility
Refinancing
Higher Ed Payments / Fin’l Mgmt
Solutions
June 2010
$124 Million
Initial Public
Offering
$311 Million
Initial Public Offering
$660 Million
Initial Public
Offering
Sale / Recapitalizations
Capital Raises
Risk Management
Training & Compliance
July 2018
Sale To
Higher Ed Payments Software
July 2016
Sale To
Cloud-Based Talent Management
April 2018
Sale To
Tutoring Solutions & Study Center
Services
November 2017
Sale To
Online Marketplace for
Higher Ed Textbooks
November 2016
Sale To
School Safety Solutions
April 2019
Has Received an Investment
from
February 2019
Sale To
December 2018
Sale To
November 2018
Acquisition of
School Safety Solutions
November 2018
Has Received an Investment
from
Career & Recruiting
Management SolutionsSaaS Training & GRC Solutions Safety Training Services
Organizational Performance Services
September 2019
Academic Achievement Solutions
July 2019
Sale To
Sales Performance
Consultancy Services
September 2019
Sale To Sale To
Learning Validation Platform
April 2019
Has Received an Investment
from
Tutoring, Training & Certification
October 2019
Sale To
EDUCATION TECHNOLOGY Q4 ’19 UPDATE
12
Raymond James Education Technology Case Studies
Raymond James
served as the
exclusive financial
advisor to VitalSmarts
in this transaction
Transaction Overview• On September 30, 2019 , Miller Heiman Group, Inc (“Miller Heiman” or the “Company”) announced a sale to
Korn Ferry, a U.S.-based management solutions firm that provides executive search services to fill executive-level positions
Company Background• Leading global provider of sales performance programs through delivering world class methodology and skill
programs, data and analytics solutions, and professional services• The Company builds world-class sales and service organizations through innovative and premier training,
technology, consulting and research solutions
Raymond James Investment Banking Role• Raymond James served as the exclusive financial advisor to Miller Heiman Group in this transaction• Raymond James ran a highly competitive process involving both strategic and financial parties
Successful Outcome• The transaction was announced on September 30, 2019
Raymond James
served as the
exclusive financial
advisor to Miller
Heiman Group in this
transaction
September 2019
Sale To
Transaction Overview• On October 15, 2019, Crisis Prevention Institute (“CPI”, or the “Company”), a portfolio company of FFL
Partners (“FFL”), announced its sale to Wendel Group (“Wendel”)
Company Background• CPI is the leading provider of behavior management and crisis prevention training programs. For nearly 40
years, the Company has been providing crisis prevention and intervention training programs to helpprofessionals respond to anxious, hostile and violent behaviors with safe and effective methods
• Primarily serves education and healthcare customers in the U.S., and is expanding its reach in behavioraland home health care, as well as other industries with similar behavioral encounters, including retail andsecurity services
Raymond James Investment Banking Role• Raymond James served as lead financial advisor to CPI in this transaction• Worked closely with CPI’s management team and shareholders to design a targeted pre-emptive process by
utilizing the threat of a broad auction process
Successful Outcome
• The transaction was announced on October 15, 2019
October 2019
Sale To
EDUCATION TECHNOLOGY Q4 ’19 UPDATE
13
Raymond James Education Technology Case Studies (Cont’d)
Transaction Overview• On July 30, 2019, MetaMetrics Inc. (“MetaMetrics” or the “Company”) announced a sale to Apax Digital, the
technology-focused growth equity fund advised by global private equity advisory firm Apax Partners
Company Background• Leading provider the de-facto standards in measurement of ability and content difficulty for reading and math
skills in the K-12 education sector• Provides educators, parents and students with universal measures for reading and math to accelerate
learning, improve achievement and monitor growth• Partners with state departments of education and leading education technology companies to incorporate the
universal scales into their products to personalize learning and differentiate instruction
Raymond James Investment Banking Role• Raymond James advised MetaMetrics and its sponsor (Pamlico Capital) on the sale to Apax Digital• Worked closely with the Company’s management team and sponsor to design a customized, selective
process aligned with key objectives and signed the deal pre-emptively to the process timeline
Successful Outcome• The transaction was announced on July 30, 2019• The partnership with Apax Digital enables MetaMetrics to catalyze growth through international expansion
and new product development
Raymond James
served as the
exclusive financial
advisor to
MetaMetrics
July 2019
Sale To
Transaction Overview• On September 30, 2019, VitalSmarts, LC (“VitalSmarts” or the “Company”) announced a sale to Leeds Equity
Partners (“Leeds”), a U.S.-based private equity firm that seeks to invest in the knowledge sector with a focuson education and training
Company Background• Leading training content provider focused on leadership development, communication skills, and execution
by turning proven behavioral science principles into learnable, repeatable skills• The Company’s training solutions enable its enterprise clients to improve performance by addressing
underlying employee behaviors• The Company is headquartered in Provo, Utah with more than 130 employees and trainers positioned across
~30 countries
Raymond James Investment Banking Role• Raymond James served as the exclusive financial advisor to VitalSmarts in this transaction• Raymond James ran a highly competitive process involving both strategic and financial parties
Successful Outcome
• The transaction was announced on September 30, 2019
September 2019
Sale To
EDUCATION TECHNOLOGY Q4 ’19 UPDATE
• Over 600 Equity Capital Markets professionals
• Over 330 investment bankers in the U.S.
• Global sales force with over 90 professionals
– Bulge-bracket distribution capability
– Approximately 33% of all institutional equity
commissions are generated outside of the U.S.
• Over 8,000 financial advisors; offices in all
50 states
• Greenwich Associates ranked #2 in overall quality
of analyst service(2)
Update
• Full-service financial services firm with investment
banking, equity research, institutional sales and
trading, and asset management operations
– Founded in 1962; public since 1983 (NYSE: RJF)
– $7.7 billion in FY 2019 net revenue; equity market
capitalization of $11.4 billion
– Stable and well-capitalized platform
• Industry-focused, knowledge-driven approach,
backed by highly-ranked equity research team
• 28 domestic and international investment banking
and institutional sales offices
• International operations in Brussels, Buenos Aires,
Düsseldorf, Geneva, London, Munich, Paris, Sao
Paulo, Toronto and Vancouver
• Acquisition of Morgan Keegan consolidated and
strengthened Raymond James’ leadership in the
middle market
• Acquisition of Mummert & Co. strengthened
Raymond James’ European presence, furthering
international expansion and growing cross-border
transaction expertise
• Over 30 senior-level investment bankers with more
than 300 years of combined experience; located in
New York City, Atlanta, Boston, San Francisco, and St.
Petersburg
• Services: Mergers & Acquisitions (sell-side & buy-side
advisory); Public Equity and Debt Offerings; Private
Placements of Equity and Debt; Divestitures; Board
Advisory Services; Recapitalizations and
Restructurings
• Since 2012, the group has advised on more than 330
M&A transactions and executed more than 180 equity
offerings representing nearly $100 billion in deal value
14
Sources of data include Capital IQ, FactSet and other news
organizations. Information obtained from third-party
sources is considered reliable, but we do not guarantee
that the information herein is accurate or complete. This
report was prepared within Raymond James & Associates’
Investment Banking Department and is for information
purposes only. This report is not a product of Raymond
James & Associates’ Research Department; recipients of
this report should not interpret the information herein as
sufficient grounds for an investment decision or any other
decision.
The report shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities
mentioned herein; past performance does not guarantee
future results. Any performance mentioned does not
include transaction fees and costs which would reduce an
investor’s return. An investment cannot be made directly in
a market index.
EBITDA: Earnings Before
Interest, Taxes,
Depreciation
and Amortization
EPS: Earnings per Share
LTM: Last Twelve Months
NA: Not Applicable
NM: Not Meaningful
PE: Price Earnings Ratio
TEV: Total Enterprise
Value
Raymond James & Associates, Member New York Stock Exchange/SIPC.
1.As of January 2020
2.Criteria for the awards can be found at https://www.raymondjames.com/about-us/accolades
Raymond James Technology & Services Investment Banking Group
Equity Capital Markets(1)
Notes & Disclosures