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


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


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


($ 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


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


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


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


6

Announced


Transaction


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)


7

Announced


Transaction


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


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


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)


Announced

DateInvestor Target Sector Domain

Transaction



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


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


9

Announced


Transaction


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


10

Announced


Transaction


Oct-19 Higher EdCommunications


• Campuswire offers a messaging tool designed

for campus communication (Campuswire) which

helps brings all class discussions, Q&A and

announcements into one place


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


• Grammarly, Inc. is a provides an AI-driven

online digital writing assistant for users to find

and correct writing mistakes


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.


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


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


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


from

Tutoring, Training & Certification

October 2019

Sale To


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


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


• 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

education technology insight - raymond james · 2020-01-22 · education technology q4 ’19 update...

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