Prior to the pandemic, in 2019, global investment in EdTech stood at $US183 billion. As a result of a spending surge brought on by COVID-19, the market is now growing at 16.3 per cent a year and is predicted to be two and a half times the size by 2025, when global expenditure could reach $US404 billion, according to HolonIQ1.
Founded in 1888, McGraw Hill provides outcome-focused learning solutions to millions of students, delivering both curated content and digital learning tools to approximately 250,000 higher education instructors, 13,000 pre-K through 12 school districts, and various professionals, companies, and institutions globally. Acquired by Apollo Global Management in 2013, McGraw Hill generates more than $US1 billion in annual revenue from its diverse suite of digital products, growing its digital offerings from less than 25 per cent of revenue in 2015, to over 70 per cent in 20212.
McGraw Hill’s mission is to unlock the full potential of each learner by creating intuitive, engaging, efficient and effective e-learning experiences, and has served as a pioneer in the education sector for more than 100 years.
The deal team leveraged its deep experience positioning digital-first education content, software and services providers, attracting multiple investors and focusing attention on key growth and transformation initiatives that were taking place company-wide. Amidst lingering COVID-19 uncertainty, Macquarie Capital was able to help investors identify the most important long-term business and market trends, resulting in a highly competitive sales process.
Macquarie Capital also served as lead advisor to Apollo. The team proposed, explored and executed on multiple creative capital solutions to diversify exit opportunities for Apollo, resulting in an optimal outcome in terms of value and strategy.
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