TPG to sell TES Global to Providence

Kenny Wastell
18 December 2018

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TPG Capital has agreed to sell TES Global, a UK-based digital education resources platform, to Providence Equity Partners.

Financial details of the deal remain undisclosed, though Providence is currently deploying capital from its eighth flagship vehicle, which typically invests in business valued at $500m-2bn.

Unquote sister publication Mergermarket recently reported that Inflexion Private Equity and Sovereign Capital were involved in the bidding process.

The transaction does not include the Times Higher Education (THE) division, which has completed a spin-out from the larger group and remains under TPG ownership pending a sale in 2019. According to Mergermarket, US-based analytics company Clarivate Analytics and RELX Group are involved in the bidding process for THE.

Under TPG's tenure, TES undertook wide-scale digitalisation, pivoting away from its original focus as a print-based classifieds business for teachers.

The company's incoming owner has a track-record in the education sector, with its existing portfolio including NACE Schools, Galileo Global Education and Study Group International.

The transaction is scheduled for completion by the end of January 2019.

Previous funding
TES (then known as TSL Education) first received private equity backing in 2005, when Exponent Private Equity backed its £235m management buyout from former parent News International.

Charterhouse Capital Partners then bought the company in a secondary buyout two years later.

TPG acquired TSL from Charterhouse for a reported £400m in 2013. The business rebranded as TES Global the following year.

Company
Founded as a spinout from News International in 2005, London-headquartered TES Global provides software and digital teaching assets to the primary and secondary education sector.

People
TPG Capital - Antonio Capo (partner).
Providence Equity Partners - Dany Rammal (managing director).

Advisers
Company - Jefferies International (corporate finance); Cleary Gottlieb Steen & Hamilton (legal); Travers Smith (legal).
Equity - Weil Gotshal & Manges (legal); Arma Partners (corporate finance).