Target Information

Palamon Capital Partners (“Palamon”) is a Pan-European private equity firm based in London that has successfully completed the sale of 24 ORE Business School (the “Company”) to Digit’Ed, an Italian managerial training hub owned by Nextalia Private Equity Fund. This sale has yielded a remarkable return of 3.9x on invested capital, generating proceeds of €136 million for the Palamon funds. Notably, this marks the fifth exit event from Palamon’s Third Fund, enhancing the realized track record of that fund to a notable 3.1x gross multiple on capital (MoC).

In 2019, Palamon executed the carve-out of 24 ORE Business School from 24 ORE Group, the parent company of Italy’s preeminent business newspaper, Il Sole 24 ORE. Recognizing the potential for substantial growth through digitalization, Palamon strategically invested in the management team and infrastructure, facilitating the delivery of online courses and expanding the addressable market across Italy. Furthermore, the company augmented its B2C business model while successfully establishing a B2B offering, effectively utilizing its extensive library of content to create specialized learning programs tailored to the specific needs of industry partners.

Industry Overview in Italy

Italy's tertiary education market has been evolving significantly, particularly in response to the rising demand for more flexible and accessible education options. The ongoing digital transformation is reshaping how educational services are delivered, with online learning technologies becoming more prevalent. As a result, institutions that can adapt to these changes are well positioned to capture a larger share of the market.

In recent years, the Italian government has been emphasizing the importance of vocational training and skills development, which aligns with the capabilities of institutions like 24 ORE Business School. This focus on lifelong learning and professional development has created a conducive environment for educational institutions aimed at equipping individuals with the skills required for a competitive job market.

The COVID-19 pandemic further accelerated this shift toward online education, with many traditional institutions forced to adapt rapidly. As a leader in digital learning, 24 ORE Business School capitalized on this trend, successfully transitioning over 85% of its courses to an online format and responding effectively to the evolving needs of students.

Moreover, the connection between educational institutions and industry partners has become increasingly vital. Institutions that forge strong partnerships can better align their offerings to meet the specific demands of the labor market, thereby enhancing the employability of their graduates. 24 ORE Business School's established network with industry partners reinforces its position as a leader within this competitive landscape.

Rationale Behind the Deal

The decision to sell 24 ORE Business School to Digit’Ed was influenced by the recognition of its established leadership in the digital education market and the prospects for continued growth. With a reputation for excellence in training courses, robust industry partnerships, and a track record of successful employment outcomes for its students, the Company is well-positioned for future expansion under the Digit’Ed umbrella.

This transaction also reflects Palamon's strategic aim to realize returns on investments at optimal times while ensuring that the companies they back are set up for sustainable growth post-exit. The combination of growing market demand for online education and 24 ORE's innovative offerings makes it an attractive addition to Digit'Ed's portfolio.

Information About the Investor

Palamon Capital Partners is a prominent private equity firm known for its strategic approach to investment in scalable businesses across Europe. With a solid track record of identifying growth opportunities, Palamon has prioritized investments in sectors poised for long-term expansion. Their expertise in managing transformations and building effective management teams has been instrumental in driving the success of their portfolio companies.

Nextalia Private Equity Fund, the owner of Digit’Ed, focuses on investing in high-potential companies in the education sector. Their acquisition of 24 ORE Business School signifies a strategic move to enhance their position within the educational landscape, leveraging 24 ORE's established digital-first reputation to drive innovation and further develop its offerings.

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This deal is viewed positively as a strategic alignment between 24 ORE Business School and Digit’Ed, facilitating further growth in the evolving education market in Italy. The successful track record of 24 ORE, coupled with its management's ability to pivot towards digital solutions amid challenges, makes it a compelling investment for Digit’Ed.

Palamon's exit illustrates its successful investment strategy, demonstrating its capability to generate substantial returns through strategic management and operational improvements, ultimately paving the way for the Company's continued success.

Furthermore, the unprecedented shift towards online learning presents substantial opportunities for growth. The expected integration of 24 ORE with Digit’Ed should enhance both entities' capabilities to offer comprehensive educational solutions across various levels of learning.

Overall, this transaction marks a significant milestone in the evolution of Italy's education sector, exemplifying how strategic investments can forge pathways to innovation and growth in a dynamic market.

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