Boston, MA – Capstone Headwaters released its Education Technology Coverage Report today, reporting that the COVID-19 pandemic has ignited a transformation in the Education industry by necessitating the widespread adoption of technological tools and validating the crucial role that education technology must play in both the short and long-term. According to the report, merger and acquisition (M&A) activity prior to the COVID-19 outbreak was on pace to exceed last year’s record-high deal activity. From January to March, 42 transactions were announced or closed compared to 33 during the same period in 2019—a 28% increase. However, year-over-year deal activity following the outbreak declined 47% between April and July, resulting in a current year-to-date decline of 19%.
Operators in the space have sought to fulfill the immediate needs of the evolving market. Many education technology companies have offered online courses to assist the needs of the remote workforce and to provide training for teachers using distance learning methods and platforms. Widespread school closures and delays have presented significant revenue opportunities for K-12 and higher education companies to offer value-added remote learning services. Additionally, the prevalence of “at-home” time proved a boon for online homeschooling, online courseware and curriculum (especially in the pre-K to 8 levels), online SAT and ACT test preparation, and online study aids for core competencies including mathematics and literacy.
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For More Information Contact the Key Report Contributors:
Head of Education Practice & Head of Global M&A
Education & Training Practice