2014 KEY HIGHLIGHTS• The largest transaction in 2014 was Charterhouse Capital

Partners’ acquisition of SkillSoft Limited, a provider of cloud-

based learning solutions for enterprises and governments, for

$2.3 billion.

• Providence Equity Partners was the industry’s most active

acquirer in 2014 with 11 transactions. This consisted of

VectorLearning, ParentLink, CardSmith, Premier Training

International, PerceptIS, LLC, VitalSmarts, SIDEARM Sports

Inc., Licensing Resource Group, AchieveGlobal, IPS Learning,

LLC and MyEdu.

• The combined tech-based segments accounted for 47 percent

of the aggregate industry’s transaction volume. In addition,

strategic acquirers represented 70 percent of deal fl ow in the

tech-based segments.

2014 KEY TRENDS• Total transaction volume in 2014 increased by nine percent

over 2013, from 298 to 325.

• Total transaction value in 2014 rose by 25 percent over 2013,

from $9.12 billion to $11.40 billion.

• The median revenue multiple increased from 1.5x in 2013 to

2.4x in 2014. The median EBITDA multiple remained nearly

constant at 11.1x.

M&A MARKET OVERVIEW

Berkery Noyes tracked 898 Education transactions between 2012

and 2014, of which 217 disclosed fi nancial terms, and calculated

the aggregate value to be $22.13 billion. Based on known transaction

values, we project values of 681 undisclosed transactions to be

$5.97 billion, totaling $28.10 billion worth of transactions tracked

over the past three years.

Disclosed median enterprise value multiples for all segments

combined in this report during the last 36 months were 2.0x

revenue and 11.0x EBITDA.

Based on volume, the most active market segment that Berkery

Noyes tracked between 2012 and 2014 was Professional Training

Services with 178 transactions.

EDUCATION INDUSTRYFULL YEAR 2014 :: Mergers and Acquisitions Trend Report

Presented by Berkery Noyes 1

Figure 1. 2012-2014 value and volume comparison.

Figure 2. 2012-2014 median revenue and EBITDA comparison.

2

Transaction Analysis :: January 1, 2014 – December 31, 2014

Strategic vs. Financial Comparison :: January 1, 2012 – December 31, 2014

Figure 3. Shows distribution of transactions among the Education Industry transactions based on publicly available information and Berkery Noyes estimates. Using a logarithmic scale, we determined that nearly one-third of companies purchased had transaction values of $7.4 million to $33.1 million. Based on this data, we estimate the total transaction value of deals done fin 2014 at $11.4 billion.

* Indicates largest transaction in the industry from Jan. 1, 2014 to Dec. 31, 2014.

Distribution Table

Figure 4. Presents the data depicted in the bell curve histogram.

Note: The projected number column is rounded as a result of the projection and may produce insignificant errors in the total sum.

Figure 6. 2012-2014 acquirer type comparison by year.Figure 5. 2012-2014 value and volume comparison by acquirer type.

Note: Financial transactions are those financed by private equity, venture capital, and other investment firms. This includes acquisitions by portfolio companies of the investment firms.

Transaction Volume by Segment :: January 1, 2012 – December 31, 2014

3©2015 Berkery Noyes

Figure 9. Presents transaction volume by market segment within the Education Industry from Jan. 1, 2012 through Dec. 31, 2014.

Purchaser Analysis

Top Ten Notable Transactions 2014

Figure 8. Presents the median enterprise value/revenue multiples paidfor companies in the Education Industry from Jan. 1, 2012 to Dec. 31, 2014based on publicly available sales price and revenue data.

Figure 7. Lists the top ten transactions for 2014 and calculates their aggregate transaction value as a percentage of the 2014 total aggregate transaction value as shown on Figure 1 & 4.

Note: Transaction data based on announced date. Deal value represents total consideration paid by the acquirer.

Deal Date Target Name Buyer Value MM US$

03/14/14 SkillSoft Limited Charterhouse Capital Partners $2,30003/13/14 Renaissance Learning, Inc. Hellman & Friedman LLC $1,10012/10/14 Royall & Company The Advisory Board Company $85006/02/14 iParadigms Insight Venture Partners $752

08/08/14 St. George's University Baring Private Equity Asia, Altas Partners LP $750

10/21/14 Relias Learning Bertelsmann SE & Co. KGaA $540

12/19/14Jorge Amado University

Center and University Veiga de Almeida

Anima Educacao $429

07/30/14 TouchNet Information Systems, Inc.

Heartland Payment Systems Inc. $333

03/24/14 Sterling Early Education G8 Education Pty Ltd $20004/15/14 CrossKnowledge Wiley $175

2014 Aggregate Transaction Value $11,397

Top 10 Aggregate Transaction Value $7,429

Top 10 Aggregate Value as a Percentage of All Transactions 65 %

2 First Quarter 20112 First Q2 st Quarter 2011rst Qu ereree

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RECENT EDUCATION TRANSACTIONS

4 ©2015 Berkery Noyes

Founded in 1980, Berkery Noyes is a leading independent investment bank serving the information, software, marketing, and technology industries. Th e fi rm has initiated, managed, and

closed more than 475 merger and acquisition transactions for privately held and publicly traded companies in the healthcare,

fi nancial services, education, and entertainment markets.

Berkery Noyes is unique among investment banking fi rms in that we combine independent strategic research and actionable

intelligence with senior banking expertise.

Berkery Noyes Securities LLC assists middle market companies with raising growth capital in the debt and equity markets.

MANAGING DIRECTORS

PETER YOONEducation Group

MARY JO ZANDYMedia, Education, Software & Online

JOHN GUZZO FinTech Group

EVAN KLEINMedia, Entertainment

& Marketing Services

JONATHAN KRIEGERHealthcare Group

THOMAS O’CONNORHealthcare Group

DICK O’DONNELLFinance Group

PETER OGNIBENEFinTech Group

JEFFREY SMITHHealthcare Group

KATHLEEN THOMASMedia & Marketing Services Group

PARTNERSJOSEPH BERKERYChief Executive Offi cer

JOHN SHEAManaging Partner

All charts in this report are based on data gathered by Berkery Noyes’ research department. All time period statistics are based

on the transaction announcement date.

For current intelligence on Mergers and Acquisitions activity in the Information Industry please visit our online service at

www.mandasoft.com

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