Educational services company Tes has bought Orovia Education, a provider of payroll and budgeting software for schools.
The company, which generates EBITDA of around £3.5 million, was acquired for around £75 million. The price includes a consideration of around £60 million and additional £15 million that will be deployed if the company meets its targets in the next three years, EducationInvestor Global has learnt.
This publication exclusively reported in March that the sale of Orovia had resumed after a cooling-off period.
Established in 2004 and based in Melton, East Yorkshire, Orovia provides payroll, HR and budgeting software to schools, independents and multi-academy trusts. Its suite of software-as-a-service (SaaS) products includes EduPay and BPS.
Designed specifically for schools, EduPay manages payslips, expenses, timesheets and p60s in a cloud-based system, with access for both the schools and their staff. BPS is a budget planning software for MATs (Multi Academy Trusts), with additional bespoke packages for local authorities and independent schools.
According to its website, Orovia has more than 4,500 education clients and a customer retention rate of 97%.
This deal shortly follows Tes’s acquisition of Standards Tracker, a provider of software for schools’ staff self-evaluation, appraisals, employee engagement, continuous performance management and career development.
Rod Williams, chief executive of Tes, said: “Being able to bring the EduPay solutions and BPS into the Tes family means we can further help schools and teachers reduce that administrative burden, empowering them with the tools which offer simplicity, accuracy, and greater cost efficiency.”
Tes was advised by DLA Piper (legal), KPMG (financial and tax due diligence), Cairneagle (commercial due diligence) and EY-Parthenon (product and technical due diligence).
Orovia was advised by Grant Thornton (vendor), Shoosmiths (legal), and RSM (financial and tax).
Date published: 3 May 2022