INVESTMENT BANKING Q1 2020 EDUCATION

FOR INSTITUTIONAL USE ONLY

Education Technology Insight

Early Childhood | K-12 | Higher Education | Corporate | B2C

INVESTMENT BANKING

Q1 2024

IN THIS ISSUE

1 Market update | 2 2 About us | 17

EDUCATION TECHNOLOGY INSIGHT

Market Update

Q1 2024

1

2

EDUCATION TECHNOLOGY INSIGHT

Q1 2024

Education Technology M&A & Capital Raising Activity

Number of U.S. Deals by Quarter(1)

Dollar Volume of U.S. Deals by Quarter(1)(2)

450

400

379

350

300

250 287

200

150

100

38 50

54

0 Q1 '22

307

236

27 44 Q2 '22

287

276

278

247

193

221

205

213

194

145

25 41 Q3 '22

34 37 Q4 '22

28 37 Q1 '23

23 30 Q2 '23

24 24 Q3 '23

Strategic PE - Majority / Sale PE - Minority

219

175

24 20 Q4 '23

251

208

21 22 Q1'24

251 transactions were announced in Q1 2024, 83% of which were minority PE deals

1. Source: PitchBook for the period Jan 1st 2022 to Mar 29th 2024. 2. Comprised of deals where the $ amount of investment was disclosed.

$8,000

($ in millions)

$6,000

$4,000

$4,303

$2,000

$3,420

$92

$792 $0

Q1 '22

$4,287

$5,604 $1,230 $474

$3,130

$3,900

$229 $928 Q2 '22

Q3 '22 Strategic

$5,841 $871 $1,020

$3,950

$2,452 $1,160

Q4 '22

$952

$340 Q1 '23

PE - Majority / Sale

$3,457

$3,899 $607

$1,640

$1,050

$3,270

$767 $22

Q2 '23

Q3 '23

PE - Minority

$3,223 $443

$1,160

$3,320 $668

$2,630

$1,620 $22

Q4 '23

Q1'24

Over $3.3 billion in Q1 2024 in announced transaction value, 20% of which came from minority PE deals

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EDUCATION TECHNOLOGY INSIGHT

Education Technology M&A & Capital Raising Activity

Q1 2024 U.S. Deals by Sector

Q1 2024 U.S. Deals by Domain

Early Childhood

6% B2C 10%

K-12 33%

Corporate 23%

Higher Ed 27%

Administrative / School Operations Admissions & Enrollment

2%

2%

Communications & Social 4%

Web Filtering / Security 4%

B2C 4%

Payments, Tuition Mgmt. & Commerce

4%

ERP / SIS 4%

Data Analytics, Assessments & Student Success 4%

LMS, Classroom & Other Learning Tech 15%

Online Learning 38%

Corporate Learning, Certification & Recruiting

19%

Q1 2024

Companies focused on the K-12 and Higher Ed markets comprised 60%+ of the transactions announced in Q1 2024

1. Source: Mergermarket; Selected Recent Strategic M&A Activity and Selected Recent Private Equity Activity from the period Jan 1st to Mar 29th 2024.

The industry witnessed a focus on Online Learning and Corporate Learning, Certification & Recruiting in Q1 2024, which comprised 56%+ of transactions

4

EDUCATION TECHNOLOGY INSIGHT

Q1 2024

Market Valuation Metrics

Education Technology TEV / Revenue(1)(3)

20.0x

16.0x 12.0x

12.8x 10.1x

8.0x

4.0x

9.6x 8.1x

9.1x 7.7x

8.3x 7.1x

8.1x 7.0x

6.8x 5.4x

6.5x 5.3x

4.9x 4.5x

3.9x 3.7x

3.5x 3.1x

0.0x

Duolingo, Inc.

Tyler

Constellation

Oracle

Workday, Inc. PowerSchool Docebo Inc. Instructure Blackbaud, Inc. ReadyTech

Technologies, Software Inc. Corporation

Holdings, Inc.

Holdings, Inc.

Holdings

Inc.

Limited

2024 2025

3.1x 2.6x

2.5x 1.8x

Sylogist Ltd. Coursera, Inc.

1.9x 1.7x D2L Inc.

Education Technology TEV / EBITDA(2)(3)

1.6x 1.5x

1.4x 1.0x

1.4x 1.4x

1.2x 1.1x

Chegg, Inc.

Nerdy, Inc.

Learning Technologies

Group plc

2U, Inc.

40.0x 30.0x

33.2x 29.3x

20.0x

10.0x

29.6x 12.3x

28.9x 24.4x

27.0x 23.0x

17.7x 15.6x

15.2x 13.2x

12.1x 10.9x

11.9x 10.8x

11.2x 8.9x

10.6x 8.9x

7.9x 6.8x

6.5x 6.1x

5.6x 5.4x

0.0x Tyler Technologies, Inc.

Nerdy, Inc.

Workday, Inc.

Constellation Software Inc.

PowerSchool Holdings, Inc.

Oracle Corporation Instructure Holdings, Inc.

2024 2025

Blackbaud, Inc.

Sylogist Ltd.

ReadyTech Holdings Limited

2U, Inc.

Learning Technologies Group

plc

Chegg, Inc.

Source: CapIQ and Equity Research as of Mar 29th, 2024.

1. Revenue multiples 20.0x are considered Not Meaningful (NM).

2. EBITDA multiples 35.0x are considered Not Meaningful (NM).

5

3. Omits companies where multiples for FY2024 or FY2025 are either not available or not meaningful.

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