Paradigm Education Solutions

Cherry Tree advises Paradigm Education Solutions:

“The Cherry Tree team leveraged their understanding of the education market and competitive landscape to find a great home for the Paradigm business. We are thankful to Chad Johnson and the entire team for the time, effort and care they put into managing this process on our behalf, and look forward to partnering with them again in the future”

Daniel Schwartz, Principal, CIP Capital

INDUSTRY:
Education

DESCRIPTION:
Nationwide Provider of Post-Secondary Print and Digital Learning Solutions and Courseware

LOCATION:
St. Paul, MN

TRANSACTION TYPE:
100% Sale to Strategic Buyer

Situation

In March 2018, CIP Capital acquired New Mountain Learning, a holding company that consisted of K-12 business (EMC School) and higher education business (Paradigm Education Solutions). In September 2018, CIP Capital merged New Mountain Learning with Carnegie Learning. Paradigm was subsequently spun out as a separately operated business and the decision was made to sell the business due to strategic fit.

Cherry Tree’s Personalized Solution

Cherry Tree leveraged its education experience and network of potential buyers and worked closely with the owners and management team to create a competitive sale process that resulted in a favorable outcome for themselves, the employees and the customers. It was especially important to the owners that the process be swift and without disruption to either Paradigm or Carnegie Learning. Cherry Tree’s customized process included introductions and discussions with numerous potential acquirers in marketing the opportunity, soliciting proposals, negotiating terms, supporting due diligence, and facilitating the closing of the transaction.

Outcome

The marketing process generated a broad interest from several strategic and financial partners. Paradigm was sold to Kendall Hunt Publishing Co., a proven leader in academic publishing for K-12 and Higher Education markets, who plans to leverage Paradigm’s offerings, technology platform and customer base for accelerated growth in higher education.

About Paradigm Education Solutions

Paradigm Education Solutions is a leading provider of educational technology solutions. They prepare traditional and post-traditional students to achieve the requisite digital literacy skill and career knowledge needed to enter the workforce, reskill, upskill and succeed as professionals. With a focus on contextualized, competency-based learning, Paradigm’s digitally driven solutions are flexible and adaptive to give students the power to learn anytime, anywhere.

About Kendall Hunt Publishing

Kendall Hunt Publishing, headquartered in Dubuque, Iowa, is a dynamic provider of quality educational products and services. Utilizing a collaborative, solutions-based approach, Kendall Hunt partners with educators to develop affordable content tailored to meet students’ needs. Through a combination of superior service, innovative technology applications and an exceptional content library, Kendall Hunt delivers proven results for both educators and students.

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. For more information, visit Cherry Tree & Associates.