Cherry Tree Advises XPrep Learning Solutions

Cherry Tree Advises XPrep Learning Solutions

XPrep Learning Solutions

Cherry Tree Advises XPrep Learning Solutions

INDUSTRY:
Education, Technology
DESCRIPTION:
100% Digital, Subscription-Based Online Test Preparation for Professional Board Exam Solutions to Veterinary, Veterinary Technician, Optometry, and Dental Hygiene Students.

Overview:

Originally founded in 2004 by three Veterinary students, XPrep Learning Solutions serves students worldwide as a well-respected leader in the online test preparation space. The Company delivers comprehensive professional board preparation solutions to veterinary, veterinary technician, optometry, and dental hygiene students. Its owners (three practicing veterinarians and one technology executive) were balancing full-time careers outside of the XPrep business and reached the right time to explore their strategic alternatives. Specifically, XPrep ownership was seeking a partner that could lead the Company through its next stage of growth while maintaining its strong brand reputation. The Company’s market leading products and strong internal leadership made a potential strategic partnership highly attractive to multiple parties. Through a Cherry Tree-led process, XPrep was able to find a highly strategic partner in PDH Academy, a portfolio company of Eden Capital, that values its brand reputation and could support its next growth chapter.
 
“We are very excited to partner with XPrep Learning Solutions and leverage best practices to provide additional professional training to our clients,” said Mark Newcomer, CEO of PDH Academy.
 
“Partnering with PDH Academy is a great fit for XPrep. The additional resources and expertise that PDH brings to the table will be a huge benefit for our students. We will be able to provide an even higher level of product and service,” said XPrep VP of Operations Brian Jensen.
 

Cherry Tree’s Role:

Cherry Tree leveraged its education experience and network of potential strategic partners and financial partners and worked closely with the owners and management team to create a competitive sale process that resulted in a favorable outcome for shareholders, employees, and students. It was especially important to the owners that the process was focused on finding a partner that would maintain the integrity of the brand and its stellar reputation among students. Additionally, the process was swift and efficient as to not disrupt nor distract the core business operations. Cherry Tree’s advisory role included introductions and discussions with numerous potential partners in marketing the opportunity, soliciting proposals, negotiating terms, supporting due diligence, and facilitating the closing of the transaction.
 

About XPrep Learning Solutions:

XPrep Learning Solutions: XPrep Learning Solutions provides online test preparation solutions to veterinary, veterinary technician, optometry, and dental hygiene students. Thousands of professionals have relied on VetPrep, VetTechPrep, OptoPrep, and HygienistPrep to pass their professional board exams.

About PDH Academy:

PDH Academy: PDH Academy provides regulatory training and certification to professionals and companies in real estate, healthcare, and specialized trades. The mission of PDH Academy is to help professionals start, manage, and advance their careers.

About Eden Capital:

Eden Capital: Eden Capital is a sector-focused private equity firm backing leading management teams in education, tech, and business services companies.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

Cherry Tree Advises Scientific Learning on their Sale to Carnegie Learning

Cherry Tree Advises Scientific Learning on their Sale to Carnegie Learning

Scientific Learning

Cherry Tree Advises Scientific Learning on their Sale to Carnegie Learning

INDUSTRY:
Education Technology
DESCRIPTION:
Provider of Online, Reading and Language Learning Software Solutions for K-12
LOCATION:
Oakland, California
TRANSACTION TYPE:
100% Sale to Strategic Buyer

Overview:

In September 2020, Scientific Learning Corporation (OTC PINK:SCIL) (“Scientific Learning”), a provider of neuroscience-based online reading and language software, announced that it had been acquired by an affiliate of Carnegie Learning, Inc. (“Carnegie Learning”), a provider of educational resources and formative assessment, in an all-cash merger transaction valued at approximately $15 million. The rationale for the combination is to strengthen the education technology portfolio of both entities and to further drive forward their joint mission of improving student learning outcomes through leading-edge technology built from and validated by rigorous research.
 
Jeff Thomas, CEO of Scientific Learning, stated, “Through our combination with Carnegie Learning, we are pleased to deliver value to our shareholders while aligning our company with a highly complementary organization that approaches cutting-edge research and technology solutions for K-12 students with a like-minded mission-driven approach.
 
Scientific Learning was advised by Cherry Tree & Associates, LLC, due to our specialization in serving education technology companies.

About Scientific Learning

Scientific Learning: Scientific Learning is a leading developer and distributor of SaaS reading instructional products that enhance the processing efficiency of the brain for struggling learners. Scientific Learning’s products have been analyzed and proven effective through numerous research studies performed by marquee institutions. The Company has developed a strong core of loyal customers in K-12 schools and clinical providers located across the globe.

About Carnegie learning

Carnegie Learning: Carnegie learning is a provider of technology enabled education and formative assessment products for middle school and high school students. Carnegie’s solutions are based on scientific research at Carnegie Mellon University and deliver math, ELA, world language, computer science, and professional learning services. 

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

Cutting Edge

Cutting Edge

Cherry Tree Advises Cutting Edge Property Maintenance on its acquisition of A-SCAPE

About Cutting Edge Property Maintenance
Founded in 2005, Cutting Edge Property Maintenance has quickly grown into one of the Twin Cities leading commercial outdoor maintenance service providers. Cutting Edge is a Women Owned Business that is WBENC certified. www.cuttingedgepm.com

About A-Scape
A-Scape is a provider of snow and lawn care services in the Twin Cities.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

Glory

Glory

Glory

Cherry Tree Advises GLORY on its Investment in Acrelec Group SAS

INDUSTRY:
Technology, Business Services, Manufacturing, Consumer
DESCRIPTION:
Global Provider of Customer Experience Self-Service Solutions for the Quick Service Restaurant and Retail Industries
LOCATION:
Basingstoke, England and Saint-Thibault-des-Vignes France
TRANSACTION TYPE:
Strategic Advisor to Acquirer

Situation:

UK-based Glory Global Solutions (International) Ltd. and its parent company GLORY LTD published its 10-year Long Term Vision in 2018, with the stated goals of expanding business domains and increasing sales by more than 100%. As part of that vision, Glory identified the fast-growing self-service kiosk industry as a strategic adjacency to its existing cash technologies business, with large market potential and strong synergy opportunities. Internal analysis of the space identified acquisition as the preferred entry into the market, allowing Glory to become an industry leader very quickly. However, because Glory already has many partners and competitors in its strategic adjacencies (including the kiosk space), it would have been difficult for them to approach acquisition targets without unnecessarily exposing strategic initiatives.

Cherry Tree’s Personalized Solution:

Cherry Tree leveraged its buy-side M&A advisory experience to develop a custom plan to identify acquisition targets within the self-service kiosk industry for Glory. After completing initial evaluations of the targets, Cherry Tree introduced select targets to Glory to initiate acquisition discussions. One of these select targets was Acrelec Group SAS, a French firm that is focused on software, hardware, and services to reinvent the customer experience for restaurant and retail brands. Cherry Tree assisted Glory on its deep evaluation of Acrelec, including financial modeling, due diligence, and the negotiation of the purchase agreement.

Outcome

In April 2020, Glory invested approximately $223 million for a majority stake in Acrelec. The investment provides Glory a leading position in a fast-growing market and will provide Acrelec the strategic resources needed to bring its solutions to customers across the globe. The partnership is in-line with the Glory Group’s Long Term Vision.

About Glory

GLORY: As a global leader in cash technology solutions, Glory provides the financial, retail, cash center and gaming industries with confidence that their cash is protected and always working to help build a stronger business. The Company’s cash automation technologies and process engineering services help businesses in more than 100 countries optimize the handling, movement and management of cash. While Glory spans the globe, the Company personally engages with each customer to address their unique challenges and goals — enhancing staff efficiency, reducing operating costs and enabling a more rewarding customer experience. Employing over 10,000 professionals worldwide with dedicated R&D and manufacturing facilities worldwide, Glory is built on a rich customer-focused, technology-driven heritage spanning more than one hundred years.

About Acrelec

Acrelec is a global technology company focused on reinventing the customer experience for restaurant and retail brands. Leveraging decades of software, hardware and service expertise, Acrelec develops and integrates new platforms that increase customer engagement, optimize efficiency and improve operations. The Company’s 900 employees collaborate with customers and partners to design, create and build the world’s leading smart stores. Never satisfied with the status quo, Acrelec’s passion is in delivering breakthroughs that drive business results.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

Advance Equipment Company

Advance Equipment Company

Advance Equipment Company

Cherry Tree advises Advance Equipment Company in its sale to the Morwest Group of Companies.

INDUSTRY:
Industrial, Equipment Rental & Leasing
DESCRIPTION:
Tower Crane and Hoist Rentals
LOCATION:
Saint Paul, MN
TRANSACTION TYPE:
100% Sale to Strategic Buyer

Situation:

Morwest Group of Companies strengthened its industry leading portfolio through the acquisition of Advance Equipment Company. Effective April 30, 2020 Advance Triwest Equipment, Ltd., a subsidiary of the Morwest Group of Companies acquired Advance Equipment Company. MORWEST Crane & Services was founded in 1988 by President and CEO Wayne Morin providing trusted crane services for over 30 years to the US and Canada.
 
Advance Equipment Company has been a leader in the tower crane, construction hoist and concrete pump business since 1969 serving the Midwest in the United States. The integration of Morwest Group and Advance Equipment Company combines two quality and customer focused family owned businesses serving the construction industry. Both companies have earned the trust of their customers through proven results, consistently delivering safe, cost effective and efficient service for over three decades. “The acquisition of Advance Equipment Company expands our equipment portfolio and service area allowing us to bring our industry leading solutions to more customers across North America” – Wayne Morin, President and CEO Morwest Group of Companies.
 

About Morwest Group of Companies

Morwest Group of Companies is the leader in the crane industry with over 30 years of proven results for their clients. They have and continue to be the most trusted crane services source throughout Canada and the USA. Morwest services clients in the Provinces of Alberta, Saskatchewan, Manitoba, British Columbia and the States of California, Iowa, Minnesota, Nebraska, North Dakota, Oregon, South Dakota, Washington and Wisconsin.
 

About Advance Equipment Company

Advance Equipment Company is a crane, hoist and concrete pump rental sales and service company based in Saint Paul, Minnesota. Advance has been serving the construction industry since 1969 and brings a 5-decade legacy of supporting the Midwest States of Iowa, Minnesota, Nebraska, North Dakota, South Dakota and Washington.
 

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC