Tes Global has acquired SchoolCloud, a school software services provider that experienced “rapid growth” amid the Covid-19 pandemic, as its transition to a digital solutions provider continues.
The Providence Equity Partners-backed company today announced its takeover of Glasgow-based SchoolCloud, which sells software that facilitates online parents’ evenings.
GCA Altium, the investment bank whose deal team was led by managing director Jeremy Harrison, advised SchoolCloud’s shareholders on its sale.
The terms of the transaction were not disclosed.
Tes Global said the deal enables it to “deepen its strategic focus on the provision of online and software-enabled products and services to schools and teachers”.
Tes Global’s takeover of SchoolCloud builds on its recent acquisitions of Edval and EduCare, as well as its divestment of its supply agencies arm to LDC, the private equity arm of Lloyd’s Banking Group.
SchoolCloud, founded in 2006 by a pair of students as part of a school challenge, is used by more than 6,000 schools, Tes Global said.
Abbreviated accounts filed with Companies House show that SchoolCloud logged profit of £816,181 for the year ended 31 October 2020 – up from £56,648 a year prior.
Given the nature of SchoolCloud’s software-as-a-service business model, it likely traded at a multiple of its revenues rather than profits.
Rod Williams, chief executive of Tes Global, said: “As a leading provider of software solutions to schools, we have seen a growing adoption of technology by schools to help with all manner of tasks, from managing pupil behaviour, to planning class timetables, and monitoring staff wellbeing. However, this year, schools have understandably looked to adopt new technology with a greater sense of urgency. This is likely to leave a longstanding valuable legacy, given the clear benefits SchoolCloud has brought to schools. We’re excited about this becoming part of Tes Global’s school software services portfolio and being able to take it to a much wider global market.”
Harrison said: “It has been a pleasure to advise Marcus and Robbie on their sale of SchoolCloud. From inception in the classroom 15 years ago, they have developed their products to be the best, most frequently used solutions in UK schools. After experiencing a period of rapid growth, we were delighted to be able to secure them a market-leading deal.”
Robbie Beattie, co-founder of SchoolCloud, said: “We’ve seen huge success as more schools adopt new technology. However, by being part of Tes Global, we are now part of a trusted partner for tens of thousands of schools worldwide. We know both schools and parents love how SchoolCloud can evolve parents’ evenings and we’re excited at the prospect of now being able to bring this technology to so many more over the world.”
Marcus Fields, co-founder of SchoolCloud, said: “From a classroom project to a solution that can help teachers and parents across the globe, this has certainly been an incredible 16 years. The team around us care deeply about supporting schools and it is fantastic to become part of such an established brand that shares those values.”
Date published: 26 February 2021