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Berkery Noyes Releases 2010 Education Industry Merger & Acquisition Trends

Friday, January 21, 2011

Berkery Noyes, a leading middle market investment bank, has released its 2010 Education Industry M&A Trends Report. This report analyzes merger and acquisition activity in the K-12, Post Secondary and Corporate and Professional markets in 2010 and compares it with activity in the three previous years.

While deal volume decreased from 2009, the aggregate deal value increased 49 percent in 2010, from $3.96 billion in 2009 to $5.92 billion in 2010. Median deal value has also increased dramatically from 2009. The post secondary technology segment increased from 7 transactions to 20 in 2010, a 186 percent increase.

Berkery Noyes determined that nearly one-third of the companies sold between 2007 and 2010 in the education industry received transaction values between $3 million and $20 million.

Financial acquirers represented 28 percent of transaction volume but 62 percent of aggregate transaction value.

"Both the increased deal value and the significant presence of strategic acquirers are indicative of higher quality assets returning to the market," said Vivek Kamath, Managing Director of the Berkery Noyes Education group. "A premium is being placed on technology offerings that provide tools and applications that make individuals and institutions more efficient and compliant in a highly regulated environment."