1、Professional Education and Learning Technology Sector UpdateHarris Williams|Q4 2022Perspectives on Professional Education and Learning Technology 2Regulated andCompliance TrainingSkill DevelopmentVertical EducationLearning TechnologySolutions designed to improve professionals skills in a broad varie

2、ty of functional areasSolutions tailored for specific industries,including pre-licensure,continuing education,and certification Solutions that enable organizations to comply with various regulatory,industry,and company-mandated training requirements Solutions that deliver content,facilitate digital

3、instruction,and enhance the learning experienceSelect Market ParticipantsSelect Market ParticipantsSelect Market ParticipantsKey TrendsKey TrendsKey TrendsRapid development in new and more complex technology is driving investment in upskilling initiativesSoft skills training for the workforce is bec

4、oming a strategic imperative for Fortune 500 and mid-market organizationsGrowth in the professional job market is creating a strong demand for training and professional certificationsIncreased focus on professional development is helping companies retain top talent;lack of training is cited as a key

5、 reason for departure by 70%of millennials switching companiesMandatory compliance and continuing education programs are creating demand for ongoing and repeatable trainingHigh-profile instances of cybercrime and ethical violations are leading organizations to adopt additional compliance and D&I tra

6、ining offeringsOrganizations continue to seek technologies that improve the learning experience,driving increased adoption in mobile learning,gamification,and micro learning solutionsCompanies are increasingly adopting solutions to support personalized instruction and preference for bite-sized learn

7、ingSelect Market ParticipantsKey TrendsThe professional education and learning technology landscape is constantly evolving,primarily driven by the widening skills gap,an ongoing shift to digital and blended learning,and a favorable job market,especially in both professional and trade professions3Pro

8、fessional Education and Learning Technology Observations and Key TrendsHappening in Education Tech Right NowOngoing shift to online and blended learning is acceleratingChanging workforce demographics as younger,technology-proficient workers demand more accessible training(e.g.,mobile,on-demand,etc.)

9、eLearning is enabling organizations to reach more professions and reskill their workforces more efficientlyWell-Funded Upskilling InitiativesIncreasing number of jobs require compliance with state and federal regulationsAvailability of quality,up-to-date content continues to be a key pain point for

10、highly regulated marketsMany organizations are implementing company-mandated compliance training programs to reduce risk and create safer workplacesComplex Regulatory Environment Driving Investment in Compliance TrainingTraditional linear career paths have been replaced by lateral moves and career p

11、ivotsProfessional education and certifications are providing opportunities for professionals to explore their interests and advance their careersAttaining micro-credentials allows professionals to build an attractive skill portfolio,signal their competencies,and become more marketable to potential e

12、mployers Rising Demand for Professional Certifications for Career AdvancementInvestment in learning technology is becoming a strategic imperative for organizations seeking to manage remote workforces,close the skills gap,and keep up with the pace of innovationNew software and infrastructure are cons

13、tantly being developed and funded to create more effective learning experiences at scaleGreater Emphasis on Educational OutcomesRapid Acceleration of Digital and Remote LearningContinuous development in new and more complex technology is forcing organizations to invest more in workforce development

14、initiativesHeightened competition for talent is making training and upskilling a strategic imperative4What Were ReadingMcKinsey“New offerings are blurring the lines between degree and nondegree learning,creating a new category of educational competitors.Googles Grow with Google program,in partnershi

15、p with Coursera,offers courses in high-demand areas These programs give prospective learners cost-effective,expeditious options beyond a degree program.”Read the full article here.Demand for Online Education Is Growing.Are Providers Ready?HR Dive“Learning and development leaders increasingly see onl

16、ine and hybrid learning models as a permanent fixture in the talent space rather than a temporary trend As their organizations increase investment in the space,most L&D leaders said they would evaluate their programs by emphasizing metrics such as improvement in job performance;improvement in knowle

17、dge and competency;and application and implementation of learning.”Read the full article here.More than Half of L&D Pros Foresee Demise of In-Person Corporate LearningLearning+Leading“The expense of attending meetings can be extensive and unrealistic for many types of healthcare providers.Increasing

18、ly,practitioners are turning to online solutions for their continuing education needs,and the belief is that the market will continue to expand as we use technology to connect all parts of our lives,both professionally and personally.”Read the full article here.5 Trends Transforming the Continuing E

19、ducation LandscapeForbes“If your organization typically embraces in-person learning at meetings,it might be time to expand and diversify offerings to include online courses and webinars.The more choices employees have for learning,the more likely they are to pursue it.If you stay the course and lead

20、 by example,your employees eventually will come to appreciate the promise of continuous versus continuing education.”Read the full article here.Three Reasons to Replace“Continuing Education”with“Continuous Education”Select Harris Williams PublicationsDeal SnapshotOnline Learning:360training Highligh

21、ts Opportunity in Regulated End MarketsProfessionals from the Harris Williams Technology and Business Services Groups discuss online learning in regulated markets and our recent 360training dealLink to ReadAccess All Harris Williams Insights HereCompliance Technology GRCSector UpdateLink to ReadProf

22、essional and Tech-Enabled ServicesSector UpdateLink to Read5Select Professional Education and Learning Technology Transactions1TargetGreyLion and Vestars equity recapitalization of 360trainingBuyerJuly 2022EV:Harris Williams ConfidentialEV/LTM EBITDA:Harris Williams Confidential360training is a prov

23、ider of integrated digital training and compliance solutions to highly regulated industriesThis investment will help 360training scale its platform within existing and new markets through continued focus on strategic acquisitions and product developmentBuyerTargetKnowFully Learning Groups acquisitio

24、n of EMT&Fire TrainingEMT&Fire Training is a provider of pre-hospital training solutions intended to serve emergency medical technicians and firefightersThis acquisition will grow KnowFullys family of professional education companies and deepens the companys offering in the emergency services sector

25、September 2022Purchase Price Not DisclosedTargetCeriFis acquisition of Solomon Exam PrepBuyerSolomon Exam Prep is a provider of online securities licensing exam preparation and review materials for FINRA,NASAA,MSRB,and NFA licensing examsThe acquisition further expands the depth and breadth of CeriF

26、is securities licensing content and product suite,and positions CeriFi to continue meeting the ever-changing needs of their financial services customersSeptember 2022Purchase Price Not DisclosedTargetMidOcean Partners acquisition of Pragmatic InstituteBuyerPragmatic Institute is a provider of online

27、 courses focused on the training and certification of product managers,marketers,and designers across multiple geographiesMidOceans backing will help Pragmatic Institute execute upon key growth initiatives including client roster expansion and penetration,new course offerings,and further global expa

28、nsionJuly 2022Purchase Price Not DisclosedTargetHSIs acquisition of SafetySkillsBuyerSafetySkills is a provider of online OSHA,EHS,and HR compliant training as well as an LMS system that allows users to assign interactive compliance training,customize reporting,and moreThis acquisition adds to Healt

29、h and Safety Institutes growing library of online training content for safety,compliance,and employee developmentOctober 2022Purchase Price Not DisclosedBuyerTargetFrancisco Partners acquisition of SAP LitmosSAP Litmos is a provider of a learning management system,as well as an extensive professiona

30、l education course library across a variety of industriesThe acquisition supports SAP Litmos growth objectives by allowing the company to operate as a standalone entity,where it can prioritize initiatives for its customers that were not possible as a subsidiaryAugust 2022Purchase Price Not Disclosed

31、40%50%60%70%80%90%100%110%120%130%+8.0%+74.2%+24.8%(18.6)%(1.4)%(17.2)%(9.6)%Professional Education and Learning Technology Public Company Trended Stock Performance16Note:As of October 31,2022.Indexed stock price performance for the period October 2021 October 2022Indexed stock price performance for

32、 the period October 2017 October 2022Public Company Stock Performance Last 12 MonthsPublic Company Stock Performance Last 5 YearsEducation Technology PlatformsS&P 500For-Profit EducationEducation ServicesEducational Content and PublishingEducational Content and PublishingFor-Profit Education(1.0)%+5

33、0.1%(44.5%)IPO UdemyIn 2022,the Education Technology Platform index has experienced a significant decline in value due to slower growth and profitability expectationsEducation Technology PlatformsEducation Services50%100%150%200%7.1%(2.3%)2.3%2.5%7Professional Education and Learning Technology Publi

34、c Company Operating and Valuation Metrics1Note:As of October 31,2022.Median EV/LTM RevenueMedian EV/NTM RevenueMedian EV/LTM EBITDAMedian EV/NTM EBITDALTM Revenue GrowthNTM Revenue GrowthLTM EBITDA MarginNTM EBITDA MarginPublic Company Operating MetricsPublic Company Valuation MetricsEducational Con

35、tent and PublishingFor-Profit EducationEducation ServicesEducation Technology Platforms18.5%13.3%1.0%6.6%11.9%19.4%14.2%19.0%19.9%18.5%19.4%22.2%3.2x1.8x1.8x1.8x23.3x9.3x13.0 x9.6x3.1x1.8x1.8x1.8x13.2x7.4x11.0 x8.3xOrganizations that offer learning content and educational services to enhance profess

36、ionals skills across a broad variety of functional areasSkill Development Sector LandscapeKey Players8Sales EnablementLeadership DevelopmentLanguage IT&DeveloperCybersecurityCreative&DesignVirtual LabsProject Management&AgileProduct Management&MarketingCoding BootcampsHRData ScienceSpecialized/Soft

37、SkillsMarketplacesSKILL DEVELOPMENTTo view full market map,please reach outto the contacts listed on page 11Solutions tailored for specific industries,including pre-licensure,continuing education,and certificationVertical Education and Compliance Training Sector LandscapeKey Players9Wellness&Fitness

38、IndustrialFinancial ServicesReal EstateEducationPublic SectorLegalTransportationAccountingOtherHealthcare,Dental&Life SciencesCOMPLIANCE TRAININGSecurity AwarenessEthics&Risk ManagementWorkplace SafetyVERTICAL EDUCATIONTo view full market map,please reach outto the contacts listed on page 11Technolo

39、gy solutions that deliver content,facilitate digital instruction,and enhance the learning experienceLearning Technology Sector LandscapeKey Players10Exam ProctoringMicrolearningDigital AssessmentsLearning Content Management&AuthoringCredentialing&BadgingLearning Management Solutions(LMS)LEARNING TEC

40、HNOLOGYTo view full market map,please reach outto the contacts listed on page 11Harris Williams:At a GlanceMinneapolisWashington,D.C.LondonBostonSan FranciscoFrankfurtClevelandRichmondTechnology Group Dedicated Harris Williams Asia-Pacific Coverage Team 30 years and thousands of deals closed100%of r

41、evenue is from M&A advisory92%of revenue from sell-side M&A70%of revenue from repeat clients8 offices across the U.S.and EuropeSector Coverage AreasArchitecture,Engineering,and Construction ComplianceeCommerce&RetailEducation Human Capital ManagementPharma Government&Public SectorIndustrial Legal Re

42、al Estate&PropertyHealthcareOffice of the CFOSupply Chain&Logistics10 industry groups with deep sector expertiseBusiness Services Group Professional Services Coverage AreasBusiness Process OutsourcingConsultingEducation&TrainingEngineeringHuman Capital ManagementLegal ServicesFinancial ServicesInfor

43、mation TechnologyInsurance&Risk ManagementMarketing&InformationGRCWorkforce SolutionsAndy LeedManaging Director,T(415)217-3420Thierry MonjauzeGroup Head,Technology G+44 20 7518 8901Brian TitteringtonDirector,T(415)217-3425 Mat TsuiDirector,T+44 20 7518 8926Derek LewisCo-Head of Business Services G(8

44、04)915-0118Ben de FiebreVice President,T(415)217-3444Harris Williams Contacts11has been acquired byDecember 202112Harris Williams Professional Education and Learning Technology ExperienceHarris Williams Transaction SpotlightSelect Professional Education and Learning Technology Transaction Experience

45、360training is an integrated digital training and compliance platform for highly regulated industries,most notably in environmental health&safety,food&beverage,real estate,healthcare,and financial services.Company Background360training is widely perceived across the regulatory training space as one

46、of the few diversified assets of scale.The company drew significant interest from a set of competitive financial sponsors.Ultimately,360trainings proven track record of accretive M&A,growing B2B customer base,and best-in-class regulatory management system drew investment and partnership from Vestar.

47、Harris Williams served as exclusive financial advisor to 360training,a portfolio company of GreyLion,in this transaction.Successful OutcomeTPC provides online industrial skills and workplace safety training,performance management,and EHS compliance software solutions.Company BackgroundTPC was a reco

48、gnized market leader in industrial skills training and certifications,drawing interest from both strategic and financial buyers.Ultimately,TPCs proven track record of double-digit organic growth,coupled with a rapidly expanding B2B customer base and a best-in-class technology solution,was highly com

49、plementary with ASC,creating a compelling combination.Harris Williams served as exclusive financial advisor to TPC Training,a portfolio company of Frontenac Company,in this transaction.Successful OutcomeHarris Williams Transaction Spotlighthas received aninvestment from has been acquired byhas been

50、acquired byhas received aninvestment fromhas beenacquired byhas beenacquired byhas received a strategic investment from has beenacquired byhas received aninvestment fromhas beenacquired byhas been acquired byhas been acquired byhas beenacquired byhas been acquired byhas beenacquired byhasacquiredhas

51、acquiredhas been acquired byhasacquiredhas received a significantinvestment fromhas received a significant investment fromJuly 202213Harris Williams Capabilities and LocationsIndustrialsSpecialty DistributionBusiness ServicesConsumerBuilding Products&MaterialsAerospace,Defense&Government ServicesEne

52、rgy,Power&InfrastructureHealthcare&Life SciencesTechnologyTransportation&LogisticsHarris Williams has a broad range of industry expertise,which creates powerful opportunities.Our clients benefit from our deep-sector experience,integrated industry intelligence and collaboration across the firm,and ou

53、r commitment to learning what makes them unique.For more information,visit our website at .Office LocationsBostonOne International PlaceSuite 2620Boston,Massachusetts 02110Phone:+1(617)482-7501Cleveland1900 East 9th Street25th FloorCleveland,Ohio 44114Phone:+1(216)689-2400Minneapolis222 South 9th St

54、reetSuite 3350Minneapolis,Minnesota 55402Phone:+1(612)359-2700Richmond1001 Haxall Point9th FloorRichmond,Virginia 23219Phone:+1(804)648-0072FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone:+49 069 3650638 00London25 Savile Row4th FloorLondon,England W1S 2ERPhone:+44 020 7518 8900Sa

55、n FranciscoOne Market Plaza,Steuart Tower11th FloorSan Francisco,California 94105Phone:+1(415)288-4260Washington,D.C.800 17th St.NW2nd FloorWashington,D.C.20006Phone:+1(202)207-2300United StatesEuropeSources and Disclosures14Disclosures and DisclaimersSourcesInvestment banking services are provided

56、by Harris Williams LLC(Harris Williams).Harris Williams is a registered broker-dealer and member of FINRA and SIPC.Harris Williams&Co.Ltd is a private limited company incorporated under English law with its registered office at 8th Floor,20 Farringdon Street,London EC4A 4AB,UK,registered with the Re

57、gistrar of Companies for England and Wales(registration number 07078852).Harris Williams&Co.Ltd is authorized and regulated by the Financial Conduct Authority.Harris Williams&Co.Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main,Germany,u

58、nder HRB 107540.The registered address is Bockenheimer Landstrasse 33-35,60325 Frankfurt am Main,Germany(email address:).Geschftsfhrer/Directors:Jeffery H.Perkins,Paul Poggi.(VAT No.DE321666994).Harris Williams is a trade name under which Harris Williams LLC,Harris Williams&Co.Ltd and Harris William

59、s&Co.Corporate Finance Advisors GmbH conduct business.The information and views contained in this presentation have been prepared in part by Harris Williams.This presentation does not purport to be comprehensive or to contain all the information that a recipient may need in order to evaluate any inv

60、estment or potential transaction.This presentation is not a research report,as such term is defined by applicable law and regulations and is provided for informational purposes only.Any and all information,including estimates,projections and other forward-looking statements,presented in this documen

61、t may involve various assumptions and significant elements of subjective judgment and analysis which may or may not be correct.Harris Williams has not independently verified,and neither Harris Williams nor any other person will independently verify,any of the information,estimates,projections or for

62、ward-looking statements contained herein or the assumptions on which they are based.The information contained in this document is made as of the date hereof unless stated otherwise.Harris Williams does not expect to update or otherwise revise this document nor provide any additional information,nor

63、correct any inaccuracies herein which may become apparent.The information contained herein is believed by Harris Williams to be reliable,but Harris Williams makes no representation or warranty as to the accuracy or completeness of such information,and information contained herein that is based on ma

64、terial prepared by others may involve significant elements of subjective judgment and analysis which may or may not be correct.Opinions,estimates and projections contained herein constitute Harris Williams judgment and are subject to change without notice.This presentation is not to be construed as

65、an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular transaction,nor shall this presentation form the basis of any contract.It does not constitute and should not be construed as an endorsement or recommendation of any enti

66、ties products or services.No part of this material may be copied or duplicated in any form or by any means,or redistributed,without Harris Williams prior written consent.1.S&P Capital IQ2.PitchBook3.McKinsey4.HR Dive5.Learning+Leading6.ForbesAppendixPublic Market Operating and Valuation Metrics116($

67、in millions)Note:As of October 31,2022.MarketEnterprise%of 52-WeekRevenue GrowthEBITDA MarginEnterprise Value/RevenueEnterprise Value/EBITDACompanyCapitalizationValueHighLTMNTMLTMNTMLTMNTMLTMNTMEducation Technology PlatformsInstructure Holdings,Inc.$3,352.0$3,788.179.8%20.6%6.3%28.5%36.3%8.2x7.7x28.

68、8x21.3xDuolingo,Inc.3,243.8 2,682.7 46.8%49.8%21.7%NM1.9%7.9x6.5xNMNMPowerSchool Holdings,Inc.3,169.7 4,468.3 75.5%16.5%7.8%10.2%30.2%7.3x6.7xNM22.3xBlackbaud,Inc.2,835.5 3,803.3 62.9%11.8%5.1%5.4%24.1%3.7x3.5xNM14.5xChegg,Inc.2,726.4 3,035.3 34.2%(0.7%)(0.1%)15.8%30.2%3.9x4.0 x25.0 x13.1xUdemy,Inc.

69、2,048.6 1,552.8 44.6%22.2%16.7%NMNM2.6x2.2xNMNMCoursera,Inc.1,878.9 1,108.6 34.1%29.4%19.8%NMNM2.2x1.9xNMNMLearning Technologies Group plc975.0 1,177.5 52.5%166.9%24.4%14.7%20.3%2.1x1.7x14.4x8.4xDocebo Inc.955.7 746.9 38.6%43.5%25.2%NM1.8%5.6x4.5xNMNMHealthStream,Inc.755.2 727.4 88.0%3.3%6.4%11.9%19

70、.5%2.8x2.6x23.3x13.4x2U,Inc.479.6 1,299.9 19.8%5.8%(1.8%)NM14.9%1.3x1.4xNM9.2xTribal Group plc161.8 169.3 62.0%0.1%(5.1%)9.3%19.3%1.7x1.7x17.9x9.0 xMedian$1,963.7$1,426.449.6%18.5%7.1%11.9%19.9%3.2x3.1x23.3x13.2xEducation ServicesAdtalem Global Education Inc.$1,893.0$2,612.898.7%48.7%(2.3%)23.2%24.8

71、%1.8x1.8x7.8x7.4xStride,Inc.1,405.81,708.570.8%9.3%1.9%10.8%15.3%1.0 x1.0 x9.3x6.4xFranklin Covey Co.701.2 675.4 93.5%17.3%6.0%13.0%16.0%2.6x2.4x19.8x15.1xSkillsoft Corp.294.3 700.9 13.9%NA(13.1%)19.4%18.5%1.1x1.3x5.6x6.8xWilmington plc292.8 277.8 91.2%(5.8%)(3.6%)19.4%23.3%1.9x2.0 x9.8x8.4xMedian$7

72、01.2$700.991.2%13.3%(2.3%)19.4%18.5%1.8x1.8x9.3x7.4xEducational Content and PublishingWolters Kluwer N.V.$26,120.6$28,437.296.5%(2.2%)2.2%30.4%32.3%5.3x5.2x17.6x16.2xPearson plc7,941.9 9,125.4 98.4%(9.1%)3.3%13.6%18.7%2.1x2.0 x15.3x10.8xGraham Holdings Company3,021.0 3,377.6 92.4%19.7%2.0%12.8%7.9%0

73、.9x0.9x7.1x11.2xJohn Wiley&Sons,Inc.2,350.1 3,331.2 72.5%4.2%2.4%14.8%20.2%1.6x1.6x10.8x7.7xMedian$5,481.4$6,251.594.5%1.0%2.3%14.2%19.4%1.8x1.8x13.0 x11.0 xFor-Profit EducationGrand Canyon Education,Inc.$3,086.4$3,057.598.6%2.3%3.3%31.0%30.3%3.4x3.3x10.9x10.8xLaureate Education,Inc.2,081.3 2,467.4

74、94.7%10.9%6.2%24.7%27.8%2.1x1.9x8.4x7.0 xStrategic Education,Inc.1,683.1 1,723.6 92.0%(5.3%)1.6%13.3%16.6%1.6x1.6x12.2x9.6xAmerican Public Education,Inc.241.8 358.6 48.4%73.3%(0.3%)10.2%9.7%0.6x0.6x5.8x6.1xAspen Group,Inc.10.1 41.0 7.3%5.7%(19.5%)NM1.6%0.5x0.7xNM42.9xMedian$1,882.2$2,095.593.3%6.6%2

75、.5%19.0%22.2%1.8x1.8x9.6x8.3xTotal Median$2,065.0$2,095.574.0%11.8%4.2%14.1%19.8%2.4x2.1x11.5x10.8xRecent Sector Transaction Detail117Closed DateTargetAcquirerBusiness DescriptionOct-22KnowBe4Vista Equity PartnersProvider of security awareness training and a simulated phishing platform that helps ma

76、nage the ongoing problem of social engineeringOct-22Applied Education SystemsiCEVProvider of SaaS-based digital curriculums,instructional materials,and industry certifications for career centers and K-12 schoolsOct-22People-AnalytixLearning PoolProvider of AI-powered solutions that use market data t

77、o uncover workforce trends and highlight the skills employees need to developOct-22EduMindAxcel LearningProvider of education,training,and professional certification management systems for various engineering and other license exam preparationOct-22SafetySkillsHealth and Safety InstituteProvider of

78、online outcome-based OSHA,EHS,and HR training solutions as well as EHS management solutionsSep-22EMT&Fire Training IncKnowFully Learning GroupProvider of pre-hospital training solutions intended to serve emergency medical technicians and firefightersSep-22ChildCare Education InstituteStraighterLineP

79、rovider of distance education certificates and childcare training programs to early childhood education professionalsSep-22PrepFEEdceteraProvider of exam prep platform that assists engineers in passing the Fundamentals of Engineering(FE)exam to become Engineers-in-Training(EIT)Sep-22Solomon Exam Pre

80、pCeriFiProvider of online securities licensing exam preparation and review materials for FINRA,NASAA,MSRB,and NFA licensing examsAug-22TIPS Provider of online TIPS(Training for Intervention Procedures)alcohol safety trainingAug-22SAP LitmosFrancisco PartnersProvider of a learning management system,a

81、s well as an extensive professional education course library across a variety of industriesAug-22Dance Studio Owners Association(DSOA)TogetherworkProvider of education resources to more than 35,000 dance studios and their professionals globallyAug-22SumTotalCornerstone On DemandProvider of a unified

82、 Learning and Talent Development suite to companies in healthcare,financial services,and other highly regulated industriesJul-22Pragmatic InstituteMidOcean PartnersProvider of online courses focused on the training and certification of product managers,marketers,and designers across multiple geograp

83、hiesJul-22RockpointeClinical Education AllianceProvider of healthcare education solutions offering accredited continuing education and related training to healthcare professionalsJul-22Knowledge Factor(Amplifire)Polaris PartnersProvider of learning algorithms,knowledge analytics,and diagnostic capab

84、ilities to healthcare,education,and other Fortune 500 companiesJul-22360trainingGreyLion and VestarProvider of integrated digital training and compliance solutions to highly regulated industriesJul-22StraffordBARBRIProvider of training and coaching services focused on educating attorneys,accountants,and other professionals