The education industry encompasses a broad spectrum of institutions and services dedicated to learning and development. This includes traditional entities such as universities, colleges, and K-12 schools, as well as specialized institutions like business schools, vocational training centers, and online education platforms. In recent years, the industry has experienced a notable surge in mergers and acquisitions (M&A), reflecting a dynamic landscape shaped by technological advancements, globalization, and evolving educational demands.
Frequency and Motivations Behind M&A Activities
M&A activities in the education sector occur with increasing regularity, driven by several key factors:
- Technological Integration: The rapid adoption of digital tools and online learning platforms has prompted traditional institutions to acquire EdTech companies to enhance their technological capabilities.
- Market Expansion: Educational institutions and companies pursue acquisitions to enter new geographical markets, diversify offerings, and reach a broader student base.
- Operational Efficiency: Mergers help institutions optimize resources, streamline administrative functions, and reduce costs.
- Regulatory Compliance: In some regions, acquisitions are a strategic response to regulatory changes, ensuring compliance while maintaining competitiveness.
- Brand Strengthening: Acquiring prestigious or well-established institutions can enhance reputation and credibility.
Notable M&A Examples Across Continents
- Europe: In April 2023, Dukes Education Group acquired the Institute of Education, Ireland’s largest school, for approximately €130 million. This acquisition expanded Dukes’ presence in the European education market and added a prestigious institution to its portfolio.
- United States: In December 2024, General Atlantic, a global private equity firm, acquired Learning Technologies Group (LTG) for $1.02 billion. LTG specializes in digital learning solutions, and this acquisition underscores the growing emphasis on e-learning and corporate training in the U.S.
- Asia: In October 2024, EQT AB, a Swedish investment firm, acquired Nord Anglia Education, a global private school operator with a significant presence in Asia, for $14.5 billion. This deal highlights the attractiveness of the Asian education market to international investors.
- Africa: While specific large-scale M&A activities in Africa are less frequent, there is a growing trend of investments in educational startups and partnerships aimed at expanding educational access and quality across the continent.
- Australia: On May 28, 2024, Next Capital acquired Scentia, the holding company of the Australian Institute of Management Education and Training and Ivy College, for $65.3 million. This acquisition reflects the consolidation trend in Australia’s vocational and higher education sectors.
Major M&A Deals in the Education Sector
Over the years, several high-profile mergers and acquisitions have reshaped the education landscape. Here are ten of the most significant deals:
- Laureate Education’s Sale of European Universities (2020) – $2 billion: Laureate divested multiple European institutions, including Universidad Europea, to France-based Planeta Group.
- Navitas Acquisition by BGH Capital (2019) – $1.7 billion: The Australian private education company was taken private by BGH Capital to expand its global reach.
- Apollo Global Management’s Acquisition of University of Phoenix (2017) – $1.1 billion: A move to revitalize the struggling for-profit university.
- Strategic Education Inc. Merger with Capella Education (2018) – $1.9 billion: Combined Strayer University and Capella University to form a larger player in online education.
- Grand Canyon Education Spin-off (2018) – $875 million: The institution transitioned from for-profit to a non-profit status, with its educational operations spun off.
- Bridgepoint Education’s Merger with Ashford University (2020) – $1.5 billion: Transitioned into a nonprofit entity.
- Nord Anglia Education’s Acquisition of ISP Schools (2018) – $1.8 billion: Expanded its portfolio of international private schools.
- Zovio’s Acquisition of Fullstack Academy (2019) – $20 million: Strengthened its focus on coding and technology bootcamps.
- Pearson’s Acquisition of Credly (2022) – $200 million: Reinforced its digital credentialing capabilities.
- Adtalem Global Education’s Acquisition of Walden University (2021) – $1.48 billion: Expanded its healthcare education portfolio.
Successes and Failures in Education M&A
Some deals have proven highly successful, leading to operational synergies, increased enrollments, and technological advancements. For instance, the merger between Strategic Education Inc. and Capella Education resulted in a stronger online presence and cost efficiency. On the other hand, some deals have struggled due to cultural misalignment, regulatory hurdles, or financial mismanagement. Apollo’s acquisition of the University of Phoenix faced significant challenges due to declining enrollment and reputational issues.
Notable M&A in Online Education
The online education sector has witnessed a surge in M&A, with companies seeking to expand their reach and technological prowess. Notable deals include:
- Byju’s Acquisition of Aakash Educational Services (2021) – $1 billion: Strengthened Byju’s offline and hybrid learning presence.
- 2U’s Acquisition of edX (2021) – $800 million: Expanded 2U’s online education offerings by acquiring the nonprofit platform.
- Coursera’s Acquisition of Rhyme Softworks (2019) – Undisclosed: Enhanced its hands-on learning capabilities.
Recent Mergers and Acquisitions (2024-2025)
The past two years have seen continued consolidation in the education sector. Some of the most notable transactions include:
- Pearson’s Strategic Acquisition of an AI-Based Learning Platform (2024): Enhancing personalized learning experiences.
- A Major Merger Between Two European Business Schools (2025): Strengthening their global rankings and international presence.
- Investment Firms Increasing Stake in Private K-12 Institutions (2024-2025): Expanding premium schooling options in emerging markets.
Conclusion
Mergers and acquisitions in the education sector are driven by a blend of financial, strategic, and technological motivations. While many deals have led to enhanced learning experiences and expanded access, others have faced challenges in execution. As the education landscape continues to evolve, M&A activities will remain a crucial tool for institutions seeking growth, innovation, and sustainability in an increasingly competitive environment.