Vista to buy Advisory Board's education business for more than $1.5B
August 30, 2017
Tech-focused buyout shop Vista Equity Partners has agreed to purchase the education business of The Advisory Board Company for $1.55 billion. The take-private deal also includes Royall & Company, a provider of research, technology and marketing services for colleges and universities; Advisory Board bought Royall & Co. for $850 million in 2015. Advisory Board has also agreed to sell its healthcare division to health services provider Optum for $1.3 billion after the education transaction is completed.
PE investments in the human capital services sector, in which Royall & Co. operates, have increased of late. Overall, PE firms have completed 34 deals in the space in 2017, per the PitchBook Platform. If the year continues at its current pace, the deal count would be the second-highest in the past decade, trailing only the 54 deals completed in 2015.