Renaissance Learning

At exit, Renaissance Learning was a leading provider of technology-based school improvement and student assessment programmes for pre-kindergarten through to senior high school ages. See how its products grew to be used by more than 70,000 schools with our backing…

USA

Realised

Together we achieved

  • The increased visibility of the business as an education technology leader, by moving from a ‘mission-driven’ focus to a ‘strategy-driven’ focus
  • 46% pa growth from 2010 to 2013 in Renaissance’s next-generation computer adaptive software following significant product investment
  • International expansion resulting in a growth in UK orders of 36% pa between 2010 and 2013 and a new partnership in South Korea

This was accomplished by

  • Migrating to a ‘Software as a Service’ business model, resulting in greater contributions from higher-margin recurring revenue
  • Developing the relationship with Google Capital to promote the opportunities for commercial partnerships between Renaissance and Google in education
  • Divesting non-core assets such as hardware and quizzes
  • Completing an add-on acquisition of Subtext, an education-focused eReading platform, to strengthen Accelerated Reader amid the digital evolution, and to allow the company to more effectively target the middle and high-school markets

www.renlearn.com

The metrics

€328m

Transaction value

2011

Acquisition year

4.1x

ROI

2014

Exit year

Sale

To financial sponsor

144

Orders 2010

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195

Orders 2013 (11% pa)

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Cash EBITDA

2010 - $52m
2013 - $91m