Education: 2022 M&A Deal Roundup and Trends to Watch Out for in 2023 (L.E.K. Consulting)
Summary
- Overall M&A volume in the education sector declined by about 15% to 20% in 2022 compared with 2021.p.5
- Global cumulative annual transaction value in education reached ~33B-41B USD in 2021 before decreasing to ~21B-26B USD in 2022.p.5
- Edtech investments comprised about 60% of education funding by volume in 2022.p.10
- North America accounted for about 50% of global education transaction value in 2022, with total investments of about $11B-13B USD.p.12
- Education stimulus packages allocated ~446.6B USD in North America and ~17.5B USD in Europe and APAC to bridge COVID-19 learning gaps.p.25
Key insights
- Disclosed transaction volume in global education M&A fell from ~242 transactions in 2021 to ~163 in 2022.p.5
- Transactions valued above $500M accounted for ~52% of total disclosed deal value in 2022.p.6
- North American transaction activity in 2022 featured mega deals including Frontline Education for about $3.7B and Houghton Mifflin Harcourt for about $2.7B.p.9
- Global Edtech transaction value was ~$16.5B in 2022, representing ~64% of total education transactions.p.10
- Education M&A investments in China declined by 60%-65% in 2022 relative to 2021 due to regulatory clampdowns.p.13
- Test prep and tutoring deal value in developing markets dropped by about 70% in 2022 compared to 2020.p.16
- Global international higher education student enrollment recovered to 6.3 million students in 2021.p.23
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