While the number of transactions has fluctuated in recent years, North America saw significant growth in transaction value in 2024, outpacing the overall M&A market. Investment in education remained strong, with a rise in mega deals.
The overall number of deals remained steady, with some recovery in lower-value segments. This recovery is supported by the four-quarter moving transaction value average, which declined from Q4 2021 through Q3 2023, began rising in late 2023, and continued its upward trend in 2024.
Private equity took a leading role, gaining transaction share from corporate M&A. Corporate training and professional upskilling consistently accounted for the highest share of total transaction volume over the past five years, followed by K-12, higher education and early childhood education (ECE).
Low interest rates, buyer and seller alignment on value expectations, and strong underlying growth drivers — such as demand for upskilling/reskilling, bridging the K-12 learning gap and the need for higher education to diversity revenue — mark positive shifts for 2025. Investors should watch for policy and regulatory changes, as well as deal fatigue following similar transactions in 2023 and 2024.
Our analysis unpacks the trends shaping education M&A and the strategic priorities investors should consider.
2024 in retrospect: a year of stabilization and selective growth
Private equity dominance
Private equity firms played a leading role in education M&A in 2024, capitalizing on the sector’s recession resilience and technological transformation potential. While corporate buyers remained active, PE investors pursued deals in adjacent sectors such as technology and healthcare, with a strong focus on expanding into education.
The return of larger transactions also stood out. Mega deals over $1 billion spanned K-12, higher education and youth enrichment, underscoring sustained investor appetite for scalable opportunities.
Sector hotspots: K-12, professional upskilling and corporate training
Despite a cautious investment environment, three segments led deal activity:
- K-12 services continued to attract strong investment, capturing ~37% of disclosed deal value. Digital infrastructure enhancements and personalized learning tools fueled interest in this space.
- Corporate training and professional upskilling maintained the highest share of total deal volume, as businesses sought scalable solutions to close skill gaps and improve workforce readiness.
- Higher education saw notable consolidation, with institutions merging to create more financially sustainable models in response to declining enrolment and rising operational costs.
With valuations stabilizing and deal sizes increasing, 2024 set the stage for a more dynamic investment landscape in 2025.
Trends to watch
- AI’s expanding role in education. AI is poised to reshape the education sector, particularly in areas such as adaptive learning, personalized instruction and assessment automation. Institutions and businesses will increasingly seek AI-driven solutions to enhance learning outcomes, improve efficiency and optimize student engagement.
- Upskilling and workforce readiness. With up to 40% of core workforce skills expected to change by 2027, demand for professional training and certification programs will intensify. M&A activity in this space will focus on scalable, outcome-driven learning models that address employer needs and offer measurable impact.
- K-12 well-being and safety investments. Mental health support, student safety and intervention programs will become critical areas of investment. Governments and private investors will prioritize solutions that enhance student well-being, from AI-driven monitoring tools to crisis response platforms.
- The evolution of higher education. Mergers among higher education institutions will continue as schools seek scale, operational efficiencies and financial stability. The rise of technology-enabled services, such as online program management and student lifecycle support, will create further M&A opportunities in the sector.
- Increasing demand for IT services. With one-time emergency funding depleted, educational institutions are now facing budget constraints, hindering their ability to prioritize and implement effective IT management and cybersecurity.
Navigating the future of education M&A
Education remains a resilient and attractive investment sector, with M&A activity poised to accelerate in 2025. As market conditions evolve, investors will need to align their strategies with the shifting demands of learners, institutions and employers.
For a deeper dive into these trends and their strategic implications, please download our full analysis and get in touch.
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