Tyton Partners 2024 Transactions

Corporate Training and Continuing Education Transaction Spotlight

The corporate training and continuing education market experienced remarkable growth in transaction volume over the past year, outpacing other segments within the global knowledge industry. This growth has been fueled by several key factors, including an escalating demand for upskilling and reskilling, particularly in the rapidly evolving technology sector. The proliferation of Vocational Technology (VocTech) solutions has also played a pivotal role, offering innovative and accessible avenues for workforce development. Furthermore, companies across diverse industries have increasingly prioritized employee retention and professional growth, recognizing that a well-trained workforce is critical to maintaining a competitive edge in the market.

As we project toward 2025, this sector is poised to sustain its robust performance, driven by substantial investor interest and the opportunities presented by a highly fragmented market. The ongoing need for specialized skills, coupled with the rapid pace of technological advancement, suggests that corporate training will remain a strategic imperative for businesses seeking to adapt and thrive in an ever-changing economic landscape. Consequently, the market is likely to witness continued consolidation and innovation, with providers aiming to deliver comprehensive, flexible, and scalable solutions to meet the dynamic needs of modern enterprises.

Tyton Partners represented the following corporate training and continuing education transactions: Lighthouse Labs, a leading tech education company, in its sale to Uvaro; Wiley in its divestiture of CrossKnowledge, a learning solutions provider for leadership and managerial skills, in its sale to Regent LP; Lorman Education Service, online education and continuous training platform, in its sale to Noggin Guru; Talepsin, a spatial learning platform for immersive learning content, in its sale to Cornerstone; Lecturio in its acquisition of The New England Journal of Medicines’s Healer Program, a digital medical and nursing curriculum, and test prep provider; The National Board of Medical Examiners (NBME), in its acquisition of MedVR education, a medical assessment and services provider.

K-12 Transaction Spotlight

The K-12 education market is undergoing a significant transformation in the post-COVID era, driven by the expiration of federal Elementary and Secondary School Emergency Relief (ESSER) funds. In 2025, investors are expected to focus increasingly on companies that enhance operational efficiencies within the education sector. Demand for advanced solutions in administrative systems, back-office functions, transportation management, compliance, and payment processing are on the rise. These areas present substantial opportunities for cost reduction, scalability, and improved service delivery, making them particularly attractive to investors.

Efficient administrative solutions, such as student data management and reporting, are becoming essential, while automation in financial operations, human resources, and logistics offers significant potential for operational savings. These key trends are anticipated to drive further consolidation in the K-12 service provider market throughout 2025.

Crucially, the financial stability of these providers—bolstered by government budgets, grants, and increasing public investment in educational technology—creates a strong foundation for sustained growth. This stability enhances the sector’s attractiveness to investors, ensuring long-term sustainability and continued market interest.

Tyton Partners Represented the following K-12 transactions: Public School Works, a school safety and compliance software platform, in its sale to Raptor Technologies, a portfolio company of Thoma Bravo and JMI Equity; Teachtown, an autism-focused software and curriculum solutions provider, a portfolio company of Bain Capital Double Impact, in its sale to, L Squared Capital Partners, as a co-advisor; Grade Potential, an in-home tutoring provider, in its sale to Sailfish, LLC.

Higher Education Transaction Spotlight

The higher education market is facing several persistent challenges, including stagnant or declining enrollment rates, exacerbated by demographic shifts and changing perceptions of the value of traditional higher education. However, community colleges are an exception to this rule, experiencing a dramatic rise in enrollments, along with certain general education colleges benefiting from internationally driven enrollment increases. The rising cost of education has also made it less accessible for many, increasing financial instability for institutions globally. A notable area of growth within the sector are the adoption of digitally delivered solutions, which cater to the evolving needs of modern learners by offering flexible, personalized, and high-quality educational experiences. Digital platforms and online learning environments are expanding access to education, reaching diverse and geographically dispersed populations.

Investors are increasingly drawn to organizations that provide solutions to address these challenges, recognizing the potential for substantial returns in companies that can help institutions adapt. Key areas of focus for investment include technology platforms that enhance learning outcomes, services improving operational efficiency, and innovative financial models that make education more affordable and sustainable. As the higher education market continues to evolve, institutions that leverage these digital advancements and address affordability concerns are poised to emerge stronger and more resilient in a competitive global landscape.

Tyton Partners represented the following higher education transaction: Post University, an online and brick-and-mortar campus, in its sale to Universidad Andres Bello (UNAB).

Tyton Partners Prepares for an Abundant 2025

The global knowledge sector M&A market is poised for strong growth in 2025, driven by a more stable interest rate environment, a robust economic outlook, a new political administration, and the accelerating adoption of AI-driven solutions. As the Federal Reserve moves toward a more predictable and potentially lower rate trajectory, financing conditions are expected to improve, enabling both strategic buyers and private equity investors to pursue transactions with greater confidence. This stability will also enhance valuation certainty, encouraging sellers who had been hesitant due to market volatility to re-enter the market.

Additionally, strong economic growth is fueling demand for education and workforce development solutions, particularly in edtech, corporate training, and higher education services. Businesses are prioritizing employee upskilling, while educational institutions continue adapting to evolving learner needs, making high-growth assets in digital learning, credentialing, and workforce enablement increasingly attractive to investors. At the same time, a new political administration could introduce policies that further support investment in education, workforce development, and technology-driven learning solutions, providing additional momentum for M&A activity.

The rapid adoption of AI is also reshaping the education sector, driving innovation and attracting investor interest. AI-powered platforms are revolutionizing personalized learning by delivering adaptive instruction tailored to individual student needs, enhancing engagement, and improving learning outcomes. In corporate training and workforce development, AI is optimizing skills assessment, automating content creation, and enabling real-time coaching, making learning more scalable and cost-effective. Educational institutions are also leveraging AI to streamline operations, from automating grading and student support to optimizing enrollment management and resource allocation. As AI continues to drive transformation across the sector, companies that integrate these advanced capabilities will be well-positioned for growth and investment.

With capital markets stabilizing, economic expansion sustaining demand, and AI accelerating innovation, 2025 is shaping up to be a highly active year for M&A in the global knowledge sector. With strong deal flow expected across multiple segments we remain committed to supporting our clients in the dynamic global knowledge sector, connecting them with the right partners and capital to thrive in an ever-evolving market.

We are keen to explore these developments and assess their potential impact on your business in 2025. Should you wish to gain deeper insights into emerging trends within your core market, or require assistance with strategic and financial decisions to position your company for future growth, investment, or acquisition, please do not hesitate to contact us. Additionally, we invite you to review a comprehensive overview of our firm’s capabilities, extensive transaction experience, and highly qualified team of professionals.

We wish you a prosperous New Year and look forward to the opportunity to collaborate with you in the near future.