Synova backs National Education Group

Synova's Philip Shapiro and Tim Ashlin have joined the company's board.

The GP intends to support NEG's growth via investment in its software and its digital content library. Strategic acquisitions of similar education software and compliance companies could also be considered.

The GP is currently deploying equity via Synova IV, which held a final close in June 2019 on its GBP 365m hard-cap. The fund invests equity tickets of GBP 10m-60m, backing businesses in the UK and Ireland with enterprise values of GBP 30m-150m in four sectors: health and education; technology; business services; and financial services. The fund has now made six platform investments.

Synova's previous education section investments include nurseries and primary schools operator Chatsworth Schools, which the GP acquired in March 2019 via its third fund.

Synova's portfolio has increased in value by 44% over the past 12 months, with three new investments, 23 bolt-ons and two exits, which generated an average return of 7x invested capital, according to the GP.

Unquote reported on recent education sector activity earlier this year, with the education technology sub-sector attracting particular interest from sponsors given the growth prospects from market trends towards remote learning and digital offerings.

As of April 2021, the education sector had seen 10 deals with an aggregate value of EUR 700m; the sector has now seen 17 deals totalling more than EUR 2bn in 2021 to date, according to Unquote Data.

Company
NEG provides online CPD courses for schools and educational institutions, allowing school leaders, teaching and non-teaching staff, and governors have access to a library of video-based content. Topics covered include compliance, online safety and safeguarding. The courses allow schools to trace and track the activity and progress of each user. The company operates via three brands: The National College, National Online Safety, and Essential CPD. NEG's software is used by around 12,000 schools.

People
Synova – Philip Shapiro (managing partner, co-founder); Tim Ashlin (partner); Charles Dale (investment director); Mike Mullally (investment manager); Mao Isobe (investment executive).
National Education Group – Neil Gamewell (CEO).

Advisers
Equity – DC Advisory (corporate finance); CMS (legal).
Vendor – Grant Thornton (corporate finance); Gateley (legal).

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