The sale of Bedrock Learning, a UK-based literacy tools provider, has recently resumed after stalling at the end of last year, EducationInvestor Global can reveal.

The company has been marketed off an EBITDA of around £2 million and is expected to reach a valuation of up to 10x, two sources close to the process told this publication.

“Bedrock operates in a niche subsector of the English language and despite its unique proposition and interesting solutions it will probably struggle to achieve a valuation of more than 10x,” one of our sources said.

“We expect a rapid second round that will attract a few select bidders, both trade buyers that want to expand their offering with a new addition and private equity firms that plan to enter or increase their investments in the ed tech sector,” a second source said.

Bedrock had mandated Deloitte in November 2021 to run the sale, as reported at the time by Mergermarket, which mentioned Queen’s Park Equity (QPE), Palatine and Bridgepoint Growth as potential buyers.

According to one of our sources, other prospective bidders for the company might include private equity firms Inflexion and IK Partners, which both have made several investments in the education sector, as well as trade buyers such as Juniper Education, a Horizon Capital-backed education software company, and Learndirect, a QPE-owned provider of distance learning and online courses.

Founded in 2014 and based in Norfolk, Bedrock Learning offers a range of tools to help primary and secondary students improve vocabulary, learn grammar and understand literacy prose and poetry. Features include engaging learning experiences, stories, video and interactive activities. According to the company’s website, its tools are used by over 800 schools worldwide.

Date published: 8 April 2022

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