Distribution of Lower Middle Market EdTech M&A Deals Sub-$25M deals drive lower middle market M&A despite rise of larger transactions.
M&A Deals by Sector
71% of M&A deals were valued under $25M
68% of M&A deals were valued over $25M
B2C
Higher Education
6%
<1%5%
6% 2%
12%
26%
K-12
38%
12%
2023
2024
Medical EdTech
27%
2024
68%
71%
28%
Corporate
$5 - $25M $25 - $75M $75 - $100M $100M+
• Strategic acquirers continued to lead M&A activity, accounting for 12 of the top 20 deals of 2024 till date. • Financial buyers adopted a more conservative investment strategy. • Larger deals ($75M+) increased significantly in 2024, constituting 18% of all transactions compared to just 5% in 2023. Deals valued under $25 million remained the primary driver of M&A activity, contributing a substantial 71% to the overall volume.
• K-12 continues to remain the sector of focus for deal activity with approximately 50% of the deal volume in 2024. – Increased investment in PreK and K-12 services was driven by the need for digital transformation, government initiatives, and community-building tools. • The demand for corporate activity is focused on reskilling, upskilling, and regulatory training. • Medical EdTech buyers primarily seek solutions that enhance training beyond the classroom by ensuring compliance and upholding practice standards.
Source: Pitchbook as of 31 December 2024. Data consists of transactions where deal value was disclosed. 1. FED allocated $14.2 billion for special education needs in 2023 and will grant additional $2.1 billion in 2024.
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