Onex Acquires Tes Global EdTech Platform

Onex Corporation, through its substantial Onex Partners V fund, has finalized an agreement to acquire Tes Global, a prominent player in the education technology services sector. This strategic move sees Tes Global transition from its previous owner, Providence Equity Partners L.L.C., a firm recognized for its investments in media, communications, education, and technology. The financial specifics of the transaction remain undisclosed, but the deal signifies a significant shift in ownership for the UK-based EdTech provider.

Tes Global, headquartered in London, operates a comprehensive suite of software solutions designed to enhance educational delivery and administration. The company's platform, which supports over 13 million educators and serves more than 17,000 educational institutions across 117 countries, focuses on key areas such as staff management, safeguarding, compliance, and pupil learning. Its offerings have become increasingly vital, particularly during periods of remote learning necessitated by the global pandemic, underscoring the critical role of digital tools in modern education.

The acquisition by Onex is driven by Tes Global's established market presence and its deep connections within the teaching community. Nigel Wright, a Senior Managing Director at Onex, highlighted the company's unique position and its focus on improving educational outcomes for students globally. He noted Onex's extensive experience in business services and its proven ability to support portfolio companies in strategic expansion, making it an ideal partner for Tes Global's next growth phase.

Tes Global's CEO, Rod Williams, expressed enthusiasm for the partnership with Onex, emphasizing the alignment of values and a shared vision for the company's future. Williams also extended gratitude to Providence Equity Partners for their support during a period of significant business transformation, which included strategic acquisitions like Edval, EduCare, and SchoolCloud, alongside the introduction of new products and services. This evolution has solidified Tes's position as a technology-forward partner for educational institutions.

The EdTech market has experienced considerable expansion, fueled by digital transformation initiatives and the increasing demand for flexible learning solutions. With global EdTech spending projected to reach substantial figures in the coming years, companies like Tes Global are well-positioned to capitalize on these trends. Onex's investment is expected to accelerate Tes Global's product development and market reach, further solidifying its competitive edge in a dynamic sector.

The transaction is slated for completion in the first quarter of 2022. Following this acquisition, Onex Partners V will be approximately 78% invested. Onex was advised by Rothschild & Co. and Latham & Watkins LLP. Tes Global received guidance from Arma Partners, Morgan Stanley & Co. International plc, and Weil, Gotshal & Manges.