Value of Mergers and Acquisitions Skyrockets, Though Number of K-12 Deals Dips
The Value of Mergers and Acquisitions Is on the Rise, Even as the Number of K-12 Deals Dips
There’s been a significant uptick in the value of mergers and acquisitions within the education industry over the past year, driven by a few major deals valued at over a billion dollars each. According to an analysis from investment bank Berkery Noyes, the total value of these deals nearly quadrupled in the first three quarters of this year, climbing from $5.5 billion to a whopping $21 billion.
Two standout K-12 deals played a major role in this surge: Private equity firm KKR’s acquisition of Instructure and Bain Capital’s purchase of PowerSchool, with both deals exceeding $10 billion in value. Despite the significant increase in dollar value, the total number of transactions actually dropped slightly, from 260 deals in the same period last year to 252 this year, representing a 3% decline.
Breaking down these deals further, the analysis revealed that 77 transactions were carried out by private equity, venture capital, or other investment firms, totaling $13.97 billion. The rest of the deals were conducted with strategic investors. Within the K-12 sector, media and tech emerged as the most active market segment, accounting for 68 transactions in 2024.
Among the standout deals during this period was Bain Capital’s $5.6 billion acquisition of Powerschool. Other notable transactions included KKR’s acquisition of Instructure for $4.8 billion and Scholastic’s $186 million purchase of 9 Story Media Group, a company specializing in children’s content. Battery Future Acquisition Corp. also made waves with its $135 million reverse merger acquisition of Classover, an online provider of K-12 courses.
Overall, while the number of deals might be down slightly, the increased value and continued activity within the education sector suggest a robust market that is evolving rapidly. It will be interesting to see how these trends continue to unfold in the coming months.
