June 19, 2019

M&A activity pick up in EDU

Mergers and Acquisitions activity has spiked recently in EDU.

Red Ventures Buys HigherEducation.com

Charlotte, North Carolina-based digital company Red Ventures announced it has acquired HigherEducation.com (H-E) for an undisclosed amount. H-E is a provider of marketing and enrollment services to post-secondary institutions.

“Online education is a fast-growing industry with enormous scale and significant innovation,” said Red Ventures CEO Ric Elias. “HigherEducation.com brings a unique mix of high-quality digital assets, well-established partnerships, and deep technical expertise, all of which fit perfectly into the Red Ventures model and provide the ideal entry point into the broader education sector.”

Launched in 2007, H-E owns a portfolio of websites that helps more than 150 primarily not-for-profit university partners expand their education offerings and better reach prospective students across the country.

“Red Ventures is the ideal long-term home for HigherEducation.com as we continue to build the leading digital marketplace serving the education sector,” added H-E founder and CEO Patrick Gavin. “I’m grateful to the Vistria team for helping us achieve this milestone. Their shared vision, commitment to our team and sector insight were instrumental in strengthening the foundation of the company.”

Red Ventures bought H-E from Chicago-based private investment firm The Vistria Group. Under Vistria, H-E capitalized on industry relationships and operating expertise to help strategically position the service in its markets and facilitate the company’s growth and profitability.

“We have enjoyed our partnership over the past two years and are thrilled to have been able to deploy the Vistria playbook in support of HigherEducation.com,” explained The Vistria Group co-CEO Martin Nesbitt. “The company is well positioned to meet the evolving needs of both prospective students and education providers, and together with Red Ventures, equipped to reach new heights.”

Red Ventures Buys HigherEducation.com

 

 

2U Announces Partnership and Stake in Keypath

Online program management companies 2U and Keypath Education have announced they will work together to help colleges launch and run online degrees.

2U has agreed to acquire a minority stake in the parent company that owns Keypath Education — an OPM that specializes in working with small colleges and has offices in the U.S., Canada, Australia and England. Keypath Education currently works with 23 university partners.

The partnership will allow 2U to “expand the scope of its services” by working with smaller or lower-tuition degree programs than it typically supports, a 2U press release said. The company is known for working with selective institutions such as the Harvard Business School.

2U also announced this week that it will be offering its students complimentary access to LinkedIn Premium Career, which will help students to network and find jobs. The company will use insights from LinkedIn Premium Career to track students’ career progression and to improve employment outcomes for 2U’s university partners.

https://www.insidehighered.com/quicktakes/2019/02/07/2u-announces-partnership-and-stake-keypath

 

2U, Inc. to Acquire Trilogy Education

  • Adds technical skills-based ‘boot camps’ to 2U’s partner offerings across a variety of technical subjects
  • Creates comprehensive suite of partner offerings across the career curriculum continuum to make education more accessible for the lifelong learner
  • Expands 2U’s partner portfolio from 36 to 68 world-class universities while strengthening its existing relationships
  • Brings together two companies with proven track records of working with top universities, accelerating 2U’s timeline to achieving $1 billion in revenue

Lanham, Md., and New York – April 8, 2019 – 2U, Inc. (Nasdaq: TWOU), a leader in education technology, today announced that it has entered into an agreement to acquire Trilogy Education, a workforce accelerator that prepares adult learners for high-growth careers in the digital economy, for $750 million in cash and stock. Trilogy partners with top universities and leading companies to provide in-person and online skills-based training programs in coding, data analytics, UX/UI, and cybersecurity that bridge regional hiring gaps in more than 50 cities around the globe.

2U is a trusted partner and brand steward to great universities, helping them build, deliver, and support world-class, graduate-level degree programs, professional certificates, and short courses online. Trilogy-powered boot camps are a natural complement to 2U’s existing portfolio of offerings; and 2U’s unparalleled track record of scaling high-quality digital education offerings will help drive Trilogy’s continued growth and online expansion.

 

A Compelling Strategic Fit

“Trilogy Education has built and scaled an incredible business thanks to Dan and his talented team, and we’re thrilled to have them join 2U. Their business is a natural strategic fit and growth driver for 2U that will extend our reach across the career curriculum continuum, deepen our relationships with new and existing partners, drive marketing efficiencies, and open a more direct corporate training and enterprise sales channel for the company. We expect the addition of Trilogy to accelerate our path to $1 billion in revenue by one year from 2022 to 2021,” 2U Co-Founder and CEO Christopher “Chip” Paucek said. “Increasingly, universities are attempting to add practical, technical skills to their degrees. We simply future-proof the degree by adding this type of technical competency.”

https://2u.com/about/press/2u-to-acquire-trilogy-education/

 

Grand Canyon University partners with Onlinedegree.com to make college education more affordable!

grand canyon onlinedegree.com

Grand Canyon University (GCU) and OnlineDegree.com are working together to help make higher education more affordable and accessible for people across the country. Prospective GCU students will be able to satisfy general education requirements at OnlineDegree.com through self-paced online courses, tuition-free to the site’s participants. Thus, significantly lowering the total cost of education and removing impediments that often prevent individuals from taking initial steps toward their degree.

At OnlineDegree.com, students can receive college credit toward their degree taking online courses without the normal applications, entrance exams, or tuition associated with traditional institutions. The fast-growing platform was created by startup veterans and leading academics in higher education to help people go back to school. OnlineDegree.com not only prepares adults for collegiate learning, but works with participating accredited universities to award transfer credit for student’s completion of the courses. With thousands of students now enrolling every month, this provides a flexible pathway for busy adults to complete general education requirements and lower the cost of a college education.

“One of the most critical issues facing our society is access to affordable higher education,” says Grant Aldrich, Founder of OnlineDegree.com. “To enact real change, we must address the issues preventing people from getting the education they need. Grand Canyon University is bringing about that change.”

Grand Canyon University is Arizona’s premier private Christian university helping students find their purpose with next-generation education, including over 200 academic programs with many in high-demand fields. GCU offers traditional students and working professionals generous scholarship opportunities, student support resources, state-of-the-art facilities, and more. A nonprofit institution accredited by the Higher Learning Commission, GCU has been providing a consistent and effective online learning platform for more than a decade, with an advanced online learning management system and a variety of online library resources available anytime, anywhere.

“Grand Canyon University has a long history of making college more attainable for busy adults and non-traditional students,” says Cameron Whitcomb, Director of Strategic Alliances. “Working together with OnlineDegree.com furthers our mission of helping everyone reach a faith-based institution offering both academic quality and integrity.”

Through the alliance with OnlineDegree.com, prospective students will have up to 44 units of available credit that could be applied toward a degree at GCU. OnlineDegree.com students will also receive an additional 10% scholarship off tuition from the standard tuition rates when they enroll.

For more information, students can visit https://bit.ly/2SRpFhX .

About Grand Canyon University
Grand Canyon University is Arizona’s premier private Christian university helping students find their purpose with next-generation education, including over 230 academic programs with many in high-demand fields. GCU offers traditional students and working professionals generous scholarship opportunities, student support resources, on-campus state-of-the-art facilities, dynamic online classrooms, innovative learning experiences and more. https://www.gcu.edu

About OnlineDegree.com
On a mission to make higher education more affordable and accessible for everyone, OnlineDegree.com is a team of startup veterans and leading academics who believe everyone should have the ability to go to college. Through its free platform, students can explore different courses and subjects on their own schedule, be better prepared for collegiate learning, and could receive college credits toward their degree at participating universities throughout the United States. Working adults now have a bridge to start their path back to school regardless of their finances or busy schedules. https://www.onlinedegree.com/about-us/.

Media Contact
OnlineDegree.com Press Team
Email: press (at) onlinedegree (dot) com

Grand Canyon University
Bob Romantic – 602-639-7611 bob.romantic (at) gcu (dot) edu

Online Education expected to continue it’s growth in 2019

edufficient advertising for online education

 

The number of students who were enrolled exclusively online grew to 15.4 percent  which is up from 14.7 percent in 2016, or about one in six students. The percentage of all students who combined online and in-person courses grew faster, to 17.6 percent in 2017 from 16.4 percent in 2016.  The percentage of students who took at least one course online grew to 33.1 percent, from 31.1 percent in 2016.  Online education continues to prove it’s not only here to stay but growing.

With traditional non profit institutions, OPM’s & for-profits continuing to cater to this growing market it’s clear that there is a lot of opportunity ahead.  Most of the traditional non profits who succeed are generally partnering with OPM’s like 2U or OPM alternative facilitators like Edufficient.  Those who try it alone continue to have a high failure rate.

 

View the Report from the National Center for Educational Statistics : https://nces.ed.gov/pubs2019/2019021.pdf

Virginia College and Brightwood College suddenly close all locations

for profit education closures 2018

Education Corporation of America, owner of a national chain of for-profit schools including Virginia College and Brightwood College in Maryland, is ending operations this week in the face of dwindling enrollment and regulatory pressures.

“This is not the outcome that we envisioned and is one that we recognize will have a dramatic effect on our students, employees and many partners,” Diane Worthington, a spokeswoman for Education Corp., said in a statement Wednesday.

The abrupt closure will leave some 20,000 students at more than 75 campuses scrambling to complete their education once the current term ends Friday. Worthington said the company, known by its acronym, ECA, will ensure students can access their transcripts to transfer to another school.

On its website, ECA promises students it will provide information within two weeks about transcript requests and recommendations on where to transfer. The haphazard planning has drawn the ire of the Education Department, which has been in talks with the company to create a transition plan for students, according to department spokeswoman Liz Hill.

Link to article: https://www.washingtonpost.com/education/2018/12/06/virginia-college-brightwood-college-closing-for-profit-operator-cites-dwindling-enrollment/?noredirect=on&utm_term=.bd3b51e1aebf

Distance Education growing but not for for profits

Distance Education across the US has been growing steadily, with the exception of for profits.  Tracking Distance Education in the United States – a recent report released by Babson Survey Research Group (BSRG). show the dramatic shift.

 

To see the results of the study: https://www.pearsoned.com/grade-increase-tracking-distance-education-u-s-infographic/?utm_medium=email&utm_source=TiDL_eNews_April2018&utm_campaign=7010N0000003Pqu&cmpid=7010N0000003Pqu

Cosmetology Schools get a little win in Gainful Employment

cometology and the GE rule

A small victory for Cosmetology schools.

A Federal Judge Partially Blocks Enforcement of Gainful-Employment Rule as it pertains to cosmetology schools

6/28/17 A federal district court judge issued an order Wednesday partially blocking enforcement of the gainful-employment rule for cosmetology schools that sued in February to halt the regulation.  Case 1:17-cv-00263-RC Document 30 Filed 06/28/17

The Department of Education  had defended gainful employment in court in March but earlier this month it announced that it would pursue a rewrite of the regulation.

The Federal judge ordered that the cosmetology schools be given additional flexibility with filing appeals of earnings data and that the department must now give those schools more time to file appeals. The order applies only to American Association of Cosmetology Schools programs.

In this case, the Court considers whether the Department of Education (“DOE”) acted
arbitrarily and capriciously with respect to cosmetology schools when it decided to
presumptively use earnings data that does not account for unreported income. Although the
DOE was justified in using reported income as the presumptive measure of overall income, it
arbitrarily and capriciously made rebutting that presumption overly difficult.
In setting standards that determine which proprietary schools’ graduates are entitled to
federally backed student loans, the DOE looks to the rates at which the schools’ graduates are
“gainfully employed.” To determine whether graduates are gainfully employed, the DOE has
adopted a test that compares the graduates’ income levels to their levels of debt. To determine
the graduates’ income, the DOE presumptively uses the Social Security Administration’s
(“SSA”) income data. This data does not account for income that is not reported to the Internal
Case 1:17-cv-00263-RC Document 30 Filed 06/28/17 Page 1 of 40
2
Revenue Service. Schools may appeal the DOE’s use of SSA data through “alternate earnings
appeals,” which, if successful, allow them to use alternate measures of income before the debt
to-earnings rates become final. To submit such an appeal, a school is required to use either state
sponsored data pertaining to over half of its graduates during the relevant timeframe or gather
income data on almost all of its graduates through a survey. Schools that fail the debt-to
earnings test for a long enough time lose eligibility for federal loans. Schools at immediate risk
of losing federal-loan eligibility are required to warn their students and prospective students that
they may be ineligible for student loans in the near future.

Link to the official order

Special VIP rate for Group Members Capital Roundtable PE investing in Education conference NYC

Market Driven Edu is pleased to announce The Capital Roundtable’s full-day conference on Private Equity Investing in Education-Focused Companies.

 

Coming up on Tuesday, July 18, in New York City, the theme of this conference is Education from 2017 to 2021 — What’s Next for Investors?

 

As a friend of Market Driven Edu, you qualify for a special VIP rate — $995 ($500 off the standard rate).  To register, please call Sarah Burd, at 212-832-7300 ext. 0, or email her at sburd@capitalroundtable.com.

 

These are exciting times for private investors in education-focused companies, even amid the uncertainty about what’s going to happen next.  Despite galactic differences of opinion, everyone’s goal is to deliver great education to as many people as possible.

 

Education is facing changes and challenges in all sectors.  Pre-K is becoming professionalized, migrating away from traditional childcare to more school-based curriculums.  Public K-12 schools are lagging behind, leading to the expansion of new alternatives, such as charter schools and pri­vate schools.  Higher education costs are rising faster than inflation, financial aid isn’t keeping up, and colleges need innovative solutions for keeping costs down.  And the gap is widening between the skills students are learning and the skills employers say workers need.

 

Chairing the conference is Dan Neuwirth, a general partner at Quad Partners. Dan co-founded the firm in 2000 and has led investments across its education portfolio.  Prior to Quad, he worked in investment banking and principal investing at Donaldson Lufkin & Jenrette, and at Goldman Sachs & Co.

 

Our 20 knowledgeable speakers will boost your knowledge of this attractive area through their first-hand experiences and by answering key questions. See speaker list here.

 

At this conference, you’ll enjoy exceptional networking opportunities. The agenda includes ample time, with session breaks and a buffet lunch, to exchange ideas, swap business cards, and form new relationships.

 

To register, please call Sarah Burd, at 212-832-7300 ext. 0, or email her at sburd@capitalroundtable.com.

 

Please be sure to mention Market Driven Edu to receive this low VIP rate.  And note this rate is not available online. 

Final days Group Member discount! 1,700+ partners at LeadsCon looking to meet you – Final days Group Member discount!

new leadscon logo

EDU Lead Buying Is Evolving – Are You Prepared? Attending LeadsCon New York Will Ensure That You’re Ahead of The Curve!
Education lead models are evolving and new verification tools, platforms, and business models are enabling a strong shift from quantity to quality. With this evolution, it’s important that EDU lead buyers have the latest resources to improve ROI and conversions. We have all of these resources available for you at LeadsCon, August 22-24, 2016 at the Hilton in New York. http://bit.ly/1t0Wy6e
REGISTER TO SECURE YOUR SPOT to improve your sales results! http://bit.ly/2a0JV7q
Opportunities for the EDU Lead Buyer Includes:
Everything You Wanted to Know (and Didn’t ) About Lead Providers:
See “under the hood” of lead providers by learning the industry secrets most don’t want you to know. Great for newcomers and industry pros alike, learn what questions to ask, what you need to be on the look-out for and what makes a good lead provider partner.
Helpful Links:
ü Full Agenda: http://bit.ly/1mREshm
ü Full Speaker List
http://bit.ly/1HcR68Y
ü Networking Opportunities
http://bit.ly/2a62DOv

ü Exhibitor List
http://bit.ly/2aBi52d
ü Key Benefits
http://bit.ly/2a82xB9
ü Testimonials
http://bit.ly/2a81NMD

Top Picks:
• Better Marketing, Better Outcomes with Consumer Intent and Behavioral Targeting http://bit.ly/2abYDLn
• The Education Regulatory Landscape: Truth in Advertising, the Power of Your Brand, and How to Control it Online http://bit.ly/2aFEtro
• Successfully Navigating the New Age of EDU Marketing http://bit.ly/29ZBsAy

Speakers:
• Sandesh Sadalge, VP, Analytics, Education Dynamics
• Deborah G. Solmor, Vice President & Deputy General Counsel, Litigation, Career Ed Corporation
• Joe Laskowski, Managing Partner & Chief Marketing Officer, Higher Ed Growth
• Marty Collins, Senior VP of Corporate Development, Legal & Compliance, QuinStreet
• Akeel Haider, VP, Audience Development, Sparkroom

This is your final chance to save 20% off the onsite pricing ($845 versus $1045). This special offer expires this week on July 29th, so act fast and don’t miss out! http://bit.ly/2a0JV7q

Member Discount : Meet 1,700+ prospects at LeadsCon – final days to save!

new leadscon logo

Market Driven EDU Discount Link:

LeadsCon’s Lowest Rate Expires In Hours – New Business Partners Are Yours For The Taking!
The time to act is now– it’s your final opportunity to cash in on the early bird price for LeadsCon New York. Join thousands of your colleagues, peers and most importantly your competitors who have already made the investment to grow profits by expanding their network, generating new business, and finding new lead sources by registering for LeadsCon New York. http://bit.ly/1jDIv4x

The Latest Conference Program Hot Topics Include:

  • Successfully Navigating the New Age of EDU Marketing
  • The Future Belongs to the Optimizers: How to Seize the Opportunity for Massive Lead Gen Gains
  • Selling Leads: Monetization, Lead Data, and Best Practices for Matching the Right Leads to the Right Buyers
  • Reviewing the Tools of the Trade: Defining the Technology that Drives Your Business
  • Finding, Identifying, and Tracking Your Cross-Channel Marketing Data for Campaign Attribution and Optimization
  • Is Online Lending the Next Uber? The Regulatory and Legal Framework Surrounding the Popular Alternative to Traditional Banking
  • View Full Agenda http://bit.ly/1mREshm
  • View Full Speaker List http://bit.ly/1HcR68Y

This is your final chance to save 25% off the onsite pricing ($795 versus $1045). This special offer expires this week on June 24th, so act fast and don’t miss out!  http://bit.ly/1jDIv4x

LeadsCon Room Block Filling Up Fast
Rooms at The New York Hilton Midtown are beginning to fill up fast. Lock in our special group rate of just $281/per night before they sell out by clicking here: http://bit.ly/1S7DcWo

Student Inquiries for Online Programs Are Far Ahead of 2014 Levels This Quarter.

December - Inquiries for Online Programs643

Local