Cherry Tree & Associates | March 2025 | Volume XIX, Issue 9

SELECTED NEWS

Educate 360 Acquires TCM Security

TCM Security, a provider of cybersecurity training, certifications, penetration testing, consulting, and auditing services, has been acquired by Educate 360, a portfolio company of Morgan Stanley Capital Partners. TCM Security initially built its strong reputation through social media, gaining over a million followers, and now provides a wide range of highly desired certifications and training courses, and cybersecurity services.

Cherry Tree & Associates acted as the exclusive advisor to TCM Security.

cherrytree.com

EQT Consortium Completes Acquisition of Nord Anglia Education for $14.5B

EQT, as part of a global investor consortium, has completed the acquisition of Nord Anglia Education for $14.5 billion. Nord Anglia operates over 80 private international schools across 33 countries, educating more than 90,000 students. The expanded shareholder group plans to support Nord Anglia’s continued growth through acquisitions, digital initiatives, and partnerships with institutions like MIT, Juilliard, and UNICEF.

eqtgroup.com

FullBloom Acquires CharacterStrong

FullBloom, a child development platform, has acquired CharacterStrong, a provider of school-based mental health solutions, including curricula and educator training. This acquisition aims to enhance FullBloom's integration of academic, behavioral, and mental health programs to support comprehensive student development.

globenewswire.com

Big Blue Marble Academy Acquires The Cedarhouse School

Big Blue Marble Academy has acquired The Cedarhouse School to expand its K-12 program offerings into the Mid-Atlantic region. The Cedarhouse School provides a comprehensive curriculum and campus-based learning experience that complements Big Blue Marble’s digital approach. The acquisition expands Big Blue Marble’s footprint and enhances its educational delivery model.

prnewswire.com

Jamf Announces Acquisition of Identity Automation for $215M

Jamf (NASDAQ: JAMF) has signed an agreement to acquire Identity Automation, a provider of RapidIdentity, which is widely used in K-12 education to manage dynamic identities, automating student and staff access based on real-time changes in class schedules, grades, and school assignments. The acquisition seeks to create a seamless solution for schools relying on shared devices and digital learning environments.

blog.identityautomation.com

Libertas Network Acquires Praxis

Libertas Network, known for its alternative education and career pathways, has acquired Praxis Careers, which empowers young professionals to launch careers without traditional degrees. Praxis’s proven model, combining skill-building with access to innovative companies, aligns with Libertas' mission to prioritize practical experience and personal initiative. Libertas plans to scale Praxis’s model, deepen industry connections, enhance its curriculum, and introduce an entrepreneurship track.

libertas.org

zSpace Acquires BlocksCAD

zSpace (NASDAQ: ZSPC), a provider of AR/VR education, is bringing BlocksCAD, a 3D design and modeling platform for STEM education, into its learning ecosystem. By integrating BlocksCAD’s browser-based modeling software with its AR/VR technology, zSpace will offer students new ways to explore coding, mathematics, and engineering through interactive 3D design. The combination enhances project-based learning and expands opportunities for students to develop critical STEM skills in an engaging, hands-on environment.

globenewswire.com

Pryor Learning Acquires PeopleKeys

Pryor Learning, a provider of professional training and development solutions backed by Trive Capital and Epic Partners, has acquired PeopleKeys, a behavioral assessment and analytics company specializing in DISC assessments, workforce development, and organizational benchmarking. PeopleKeys’ tools, used by over a million individuals, enhance hiring, upskilling, and employee engagement through proprietary analytics. Integrating these solutions with Pryor’s extensive training content strengthens its ability to offer data-driven learning experiences that improve workforce performance and retention.

prnewswire.com

Sibme Acquires MyLearningHub

Houston-based edtech provider Sibme has acquired MyLearningHub, a UK-based corporate LMS provider. The strategic purchase unifies Sibme’s AI-enhanced K-12 coaching platform with MyLearningHub’s structured training tools, expanding Sibme’s reach into corporate learning and development while bringing MyLearningHub’s scalable LMS into the K-12 educator training market.

sibme.com

Brisk Teaching Raises $15 Million

Brisk Teaching, an AI-powered teaching and learning agent for K-12 schools, has closed a $15 million Series A funding round led by Bessemer Venture Partners, with participation from previous investors Owl Ventures, South Park Commons, and Springbank Collective. The funding is intended to support the expansion of Brisk's AI classroom tools, which assist teachers with tasks such as lesson planning, grading, and creating presentations.

prnewswire.com

Huron Divests Studer Education

Huron Consulting Group has divested Studer Education, a Pensacola, Florida-based consultancy that supports K-12 educational institutions in continuous improvement and performance excellence initiatives. The buyer was not disclosed.

clearsightadvisors.com

Roper Technologies to Acquire CentralReach

Roper Technologies (NASDAQ: ROP) has agreed to acquire CentralReach, a provider of cloud-based software for autism and intellectual and developmental disabilities care, for $1.65 billion, net of $200 million in tax benefits. The acquisition is expected to close in April or May 2025 and will be funded through Roper's cash on hand and revolving credit facility.

ropertech.com

McGraw Hill Acquires Essaypop

Education publisher McGraw Hill has acquired Essaypop, an interactive, cloud-based writing solution designed to demystify writing for educators and students. This acquisition is intended to enhance McGraw Hill's portfolio of digital literacy tools and personalized learning capabilities for K-12 education.

mheducation.com

Behavior Genius Acquires Bay ABA

Behavior Genius, LLC has acquired Bay ABA, a San Mateo-based provider of Applied Behavior Analysis (ABA) therapy services for children with autism, expanding Behavior Genius's presence across the San Francisco Bay Area. The transaction aims to combine operational strengths, enhance service offerings, and improve revenue cycle management. Behavior Genius intends to use this acquisition to expand its ABA services across California.

levinassociates.com

Ascend Learning Acquires Clover Learning

Ascend Learning has acquired Clover Learning, a provider of specialized digital training modules in radiology and diagnostic imaging. This acquisition is intended to strengthen Ascend's portfolio of education related allied health brands, and support its mission to offer comprehensive training and certification solutions to healthcare professionals.

globenewswire.com

Kalkomey Partners with Stephens Group to Enhance Outdoor Education

Kalkomey has entered into a partnership with Stephens Group to integrate curriculum content and practical training in outdoor education. The collaboration combines Kalkomey’s instructional resources with Stephens Group’s field-based expertise to deliver hands-on learning experiences. The initiative supports schools and community groups by offering robust outdoor educational programs.

businesswire.com

OnlineMedEd Acquired by Archer Review, a Leeds Equity Portfolio Company

Archer Review, a healthcare education company backed by Leeds Equity Partners, has acquired OnlineMedEd, a provider of medical education curriculum and supplemental learning solutions. Archer Review, known for its nursing education programs, has served over 700,000 students, while OnlineMedEd has supported more than 300,000 medical students with resources spanning preclinical education through residency.

businesswire.com

2U Acquires CoGrammar

2U (PINX: TWOUQ) has acquired CoGrammar, formerly known as HyperionDev, which provides educational technology solutions through a platform aimed at addressing the global technology skills gap by offering scalable code reviews integrated into learning management and applicant tracking systems.

Source:

pitchbook.com

BTS Acquires Sounding Board

BTS Group (BKK: BTS), a global consultancy specializing in strategy execution and leadership development, has reached an agreement to acquire Sounding Board, a provider of scalable coaching solutions. This acquisition enhances BTS’s technology capabilities, providing a more productive and scalable platform to meet growing demand in the $7 billion coaching market. The acquisition will expand BTS’s global coaching network to include more than 700 credentialed coaches worldwide.

bts.com

KnowFully Acquires EfficientCME

KnowFully Learning Group, a provider of continuing professional education, exam preparation, and digital learning solutions for accounting, finance, and healthcare sectors, has acquired EfficientCME, a provider of continuing medical education (CME). EfficientCME specializes in CME activities focused on neurology, psychiatry, and oncology. This addition strengthens KnowFully Medical Education (KME) by bringing new expertise and enhancing its educational offerings.

globenewswire.com

CollegeNET Announces Majority Investment from Rubicon Technology Partners

CollegeNET, Inc., a provider of innovative software solutions for higher education, has secured a majority investment from Rubicon Technology Partners, a private equity firm specializing in middle-market enterprise software. This partnership is expected to help accelerate CollegeNET’s growth and innovation, particularly across its core offerings such as scheduling, space management, and AI-driven solutions.

businesswire.com

Certiverse Secures Series A Funding

Certiverse, an AI-powered certification platform, announced an oversubscribed $11 million Series A funding round led by Cherryrock Capital, with increased investment from existing investors including Chingona Ventures and Hyde Park Venture Partners. The funding is intended to help Certiverse expand its certification platform, which aims to reduce the time and cost typically associated with developing credentialing programs. The company states its technology can support organizations and individuals seeking quicker, cost-effective, and accessible paths to obtaining certifications amid rising demand for skills-based credentials.

globenewswire.com

CHERRY TREE EDUCATION FOR-PROFIT 50 INDEX

Cherry Tree created the Education For-Profit 50 Index representing a group of publicly traded for-profit education companies. The For-Profit Education 50 Index consists of companies in the Pre-K-12, Postsecondary Education, Training and Development, Education Products and Services, and International Education Company segments for-profit education industry.

* EV=Enterprise Value

MONTHLY COMMENTARY

There’s an old Scandinavian saying that says, there is no such thing as bad weather, only inappropriate clothing. At Cherry Tree we know bad weather – we live in Minnesota. We’ve lived through a few bad winters, and more bad storms than we can count. And as professionals, we’ve lived and worked through more than a few up-and-down economic cycles. We encourage our K-12 clients to keep this perspective in mind.

Yes, there are challenges in some K-12 market segments today, and there is no benefit in ignoring that fact. In some cases battening down the hatches makes sense, as many market segments are struggling to find growth or retain customers at previous rates. Many districts are struggling with declining enrollments and the loss of federal stimulus dollars, at the same time they question the multitude of vendors they bought from in the past few years. There are even some segments that had traditionally stable funding streams, where potential changes at the Federal government are unknowable as we sit here today. Investments in hiring additional salespeople may not make sense for a company dealing with these issues, but investments in client service and support very well could. And focusing on profitability, with enough cash cushion to ride through this downturn, may be the strategically smart decision.

In other K-12 segments, the skies are clear and the sails are filled. In some cases this is because state governors are dedicating funding to priority areas such as Career and Technical Education, STEM, and Early Childhood Education. In other cases it could be trends that benefit specific approaches, such as the Science of Reading movement in literacy given its reputation for effectiveness, or the persistent needs districts face in their day-to-day operations, such as with teacher retention. Some market segments are even benefitting as an alternative to public schools, such as with private schools and home-schooling. Investing to capture these opportunities and to take market share could be exactly the right strategy despite what the general market sentiment would suggest.

In other words, try not to worry about what you can’t control. And dress appropriately. For a confidential discussion about your company’s prospects and strategic alternatives for exiting, merging, acquiring, or obtaining venture financing, and how trends in education affect your prospects, please contact us at 952-893-9012.

About Cherry Tree & Associates:

Cherry Tree is a Minneapolis-based investment banking firm with more than four decades of transaction experience, with education being a primary segment focus. Our services include Sell-Side M&A where ownership wants to either realize their liquidity goals or desires to recapitalize their business to better position it for future growth. Additionally, we represent Buy-Side clients in efforts to add acquisitions to complement their organic growth efforts.

Prepared by:

Chad Johnson, Managing Partner

cjohnson@cherrytree.com | 952.253.6010

www.cherrytree.com

Follow me on Twitter@ChadEricJohnson

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Important Disclosures

The information included in this publication has been obtained from public sources, and is not based upon private or confidential Cherry Tree information. Cherry Tree gathers its data from sources it considers reliable. However, it does not guarantee the accuracy or completeness of the information provided within this publication. Any opinions presented reflect the current judgment of the authors and are subject to change. Cherry Tree makes no warranties, expressed or implied, regarding the accuracy of this information or any opinions expressed by the authors. Officers, directors, partners of Cherry Tree and Cherry Tree proprietary investment funds may have positions in the securities of the companies discussed, and certain affiliates of Cherry Tree may recommend to specific clients the purchase and sale of securities discussed in the publication. This publication does not constitute a recommendation with respect to the securities of any company discussed herein, and it should not be construed as such. Cherry Tree or its affiliates may from time to time provide investment banking or related services to these companies. Like all Cherry Tree employees, the authors of this publication receive compensation that is affected by overall firm profitability. We undertake no obligation to update any information in this publication.

The Education For-Profit (EFP) 50 Index is a hypothetical index, and does not reflect an actual investment portfolio. Comparisons between the EFP 50 Index and the S&P 500 are for illustrative purposes only. Correlations in performance information for the EFP 50 Index and the S&P 500 should not be relied upon as indicative of risks involved in owning or holding a portfolio of securities similar to the EFP 50 Index. Past performance should not be relied upon as indicative of future performance.