The EdTech sector witnessed transformative growth in 2024, driven by an increasing emphasis on technology to enhance access and efficiency in education. As companies, institutions, and learners rely on innovative solutions, strategic mergers and acquisitions have become a key factor in reshaping this dynamic sector. Below, we highlight the five largest EdTech transactions of 2024 based on their disclosed value, revealing the companies involved and the rationale behind these deals.
Bain Capital Private Equity acquires PowerSchool for US$5.6 billion
On June 7, 2024, Bain Capital Private Equity completed the acquisition of PowerSchool, a leading provider of cloud-based software for K-12 education, for $5.6 billion.
About PowerSchool
PowerSchool is a pioneering cloud-based platform designed to streamline K-12 education. It provides tools for student information management, learning management and administrative support, making it an integral part of educational institutions' operations. By providing a centralized platform for educators, parents and students, PowerSchool has transformed the way schools manage and deliver instruction.
About Bain Capital Private Equity
Bain Capital Private Equity is known for its value-added investment approach, focusing on technology and growth-ready companies. With a global reach, Bain supports companies in scaling up operations and innovation. Over the years, Bain Capital has developed expertise in identifying high-growth sectors and strategic direction to drive long-term success.
Strategic Justification of the Acquisition
This acquisition reflects Bain Capital's confidence in the growing digital transformation of education. PowerSchool's comprehensive suite of solutions enables Bain to enter the expanding education technology market. As schools increasingly adopt digital tools to improve efficiency and student outcomes, PowerSchool's role as a market leader presents significant growth opportunities. Bain's investment underscores the importance of cloud-based solutions to modernize education and address the changing needs of the sector.
Kohlberg Kravis Roberts (KKR) acquires Instructure for US$4.8 billion
Kohlberg Kravis Roberts (KKR), una empresa de gestión de activos alternativos, adquirió Instructure, una empresa EdTech famosa por sus sistemas de gestión del aprendizaje, en julio de 2024 por 4.800 millones de dólares.
About Instructure
Instructure develops Canvas, a learning management system (LMS) widely used in primary, secondary and higher education institutions. Canvas is known for its user-friendly interface, robust features and seamless integration with other educational tools. The platform has become a go-to solution for educators and institutions that want to deliver engaging and efficient online and hybrid learning experiences.
About KKR
KKR is a leading global investment firm specializing in private equity, fixed income and capital markets. With decades of experience, KKR focuses on supporting companies that deliver innovation and value. The firm has a track record of identifying transformative opportunities and working closely with its portfolio companies to maximize their impact.
Strategic Reasons for the Acquisition
KKR's acquisition of Instructure underscores its commitment to investing in high-potential technology platforms. As remote learning and hybrid education models continue to expand, Instructure's robust LMS positions KKR to capitalize on the growing demand for scalable and effective educational tools. Leveraging Instructure's market presence and innovative capabilities, KKR aims to drive growth and improve access to quality education worldwide.
In 2021, we already discussed the importance of investing in technology through examples of recent acquisitions at that time. From companies developing technology for the pharmaceutical sector to gaming companies, investing in tech firms enhances an organization’s efficiency, productivity, and competitiveness.
Roper Technologies acquires Transact Campus for US$1.5 billion
On August 15, 2024, Roper Technologies, a diversified company, announced the acquisition of Transact Campus, a university commerce solutions provider, for $1.5 billion.
Description of Transact Campus
Transact Campus is a leader in college commerce and offers solutions that simplify payment processes and improve operational efficiency for colleges and universities. Its platform integrates tuition payments, campus ID cards and dining services into a single solution. By addressing multiple operational needs, Transact Campus has established itself as a trusted partner for educational institutions around the world.
Roper Technologies Description
Roper Technologies specializes in the design and distribution of technology solutions in various industries. Its acquisition strategy focuses on companies with strong recurring revenues and growth potential. With the acquisition of Transact Campus, Roper aims to enhance its presence in the EdTech sector and offer innovative commerce solutions tailored to the needs of the education market.
Explanation of the strategic reasons for the acquisition
This acquisition allows Roper Technologies to expand its presence in the education sector. Transact Campus' focus on streamlining campus operations aligns with Roper's commitment to providing innovative customer-centric solutions. The deal highlights the growing importance of digitized commerce at educational institutions, offering convenience and efficiency for both students and administrators.
General Atlantic acquires Learning Technologies Group for US$1.02 billion
General Atlantic, a global private equity firm, acquired Learning Technologies Group (LTG), a provider of digital learning solutions, for $1.02 billion in December 2024.
About Learning Technologies Group
Learning Technologies Group specializes in e-learning content, platforms and talent management solutions. It helps organizations improve employee learning and development through digital tools. By offering scalable and effective e-learning solutions, LTG has become a leader in corporate training and employee development.
About General Atlantic
General Atlantic focuses on growth-oriented investments, partnering with companies to expand operations and drive innovation. Its portfolio spans the technology, healthcare and consumer sectors. With a proven track record of identifying high-impact opportunities, General Atlantic continues to play a pivotal role in transforming industries.
Strategic Justification of the Acquisition
The acquisition of LTG strengthens General Atlantic's position in corporate training and e-learning. With an increasing number of organizations adopting digital training for their employees, LTG's expertise enables General Atlantic to effectively address this demand. This deal reflects the general trend towards digitization of corporate training environments, which helps organizations remain competitive in a rapidly changing world.
Next Capital acquires Scentia for US$65.3 million
On May 28, 2024, Next Capital, a private equity firm, acquired Scentia, the holding company of the Australian Institute of Management Education and Training and Ivy College, for $65.3 million.
About Scentia
Scentia oversees Australia's leading education brands, which offer vocational and higher education programs. Its institutions are recognized for their industry-focused curricula and flexible learning models. With a strong emphasis on practical skills, Scentia plays a key role in responding to workforce demands and improving employability.
About Next Capital
Next Capital is an independent private equity firm specializing in financing small and medium-sized companies with growth potential. It supports its portfolio companies through strategic investments and operational expertise. By partnering with Scentia, Next Capital aims to drive the growth of professional training.
Strategic justification
Next Capital's acquisition of Scentia highlights its interest in the growing Australian education market. By investing in Scentia, Next Capital intends to expand its reach into vocational and higher education, addressing the growing demand for skills-based training. This agreement reinforces the importance of flexible, industry-tailored education in preparing students for the future workforce.
Conclusions and future forecasts for the EdTech sector
The EdTech sector in 2024 showed significant M&A activity, driven by the rapid adoption of technology in education and training. These top five transactions illustrate the diverse approaches companies are taking to capture opportunities in this evolving market. From Bain Capital's acquisition of PowerSchool to Next Capital's investment in Scentia, these deals underscore the critical role of technology in shaping the future of education.
Each of these transactions highlights a unique aspect of the EdTech landscape, from cloud-based solutions and learning management systems to vocational training and campus commerce. As EdTech continues to grow, these strategic investments will likely pave the way for greater innovation and accessibility of learning solutions around the world. The transformation of the industry underscores the importance of collaboration, technology and strategic foresight in responding to the ever-changing needs of learners and institutions.
From Baker Tilly's M&A advisory team for technology sector companies, we continuously analyze the market and guide our clients on the best timing to acquire companies, optimizing the probability of success and transaction conditions. Contact us to learn more about our services.