Compass Education set to enter new international market via acquisition

29 June 2021

Compass Education, the Advent Partners-backed Australian provider of school management software, is working on an acquisition to accelerate market entry into a new international market, said Robert Radcliffe-Smith, Managing Partner at Advent.

Without disclosing in which new market the acquisition is taking place, Radcliffe-Smith said the company is actively assessing other acquisitions that facilitate entry into new markets or customer acquisition in target markets.

The Melbourne-headquartered company now has presence in Ireland, the UK and Canada, he said, noting that Compass will continue to build its presence across these markets via a combination of acquisitions and organic growth.

Mergermarket reported in 2019 that Compass Education would consider education-related technology acquisitions in any of these geographies that could further build out its platform by providing better communication between education stakeholders like teachers, parents and students, as well as businesses that could support academic performance, citing co-founder and CEO John de la Motte.

The company recently announced it acquired Sydney-based provider of school administration software Momentum ESR for an undisclosed amount. The acquisition will help the company build scale in New South Wales, noted Robert Hooke, Partner at Advent.

Advent Partners, which invested AUD 60m (USD 45m) into Compass Education in 2018, owns a substantial minority stake, Radcliffe-Smith said.

The PE firm is very happy with the company’s progress, he continued. Advent was attracted to Compass as, among other things, it is the only fully SaaS-based cloud school information platform in Australia, according to Radcliffe-Smith.

Hooke declined to provide details on Advent’s exit timeline or preferred exit mode. As Mergermarket reported earlier this year, Australia’s education technology companies are getting more interest as M&A and investment targets since the pandemic has accelerated the need for digitization in the education sector.

Likewise Compass has seen its business benefiting from the pandemic, according to Hooke. The company increased its revenue by 65% in the 12 months to January 2021, driven by dramatically boosted demand for edtech during the pandemic, he said. There are favourable tailwinds driving schools to adopt unified school information systems, he said.

Compass, which has more than 150 employees, serves more than 1,800 schools in its markets with the tools needed to reduce time-consuming repetitive tasks. The platform facilitates many aspects of a school’s operations, including student information management, roll marking, parent communication and cashless school canteens.

by Christel Thunell in Sydney

Read More

Advent NewsApril 2024 Download TO OUR INVESTORS, FOUNDERS AND FRIENDS Welcome to Q2 2024! As the year speeds up, we wanted to take the opportunity to reflect on a remarkably busy end to 2023 and to look ahead to the…

7 February 2024Melbourne, Australia - Advent Partners, one of Australia's leading growth buy-out private equity firms, is delighted to announce its significant investment in RMS Cloud (‘RMS’), a leader in cloud-based SaaS Property Management Software (‘PMS’) for the accommodation sector.…

30 January 2024Brisbane, Australia - MySite a leader in SaaS community and stakeholder engagement solutions, is excited to announce a strategic investment by Advent Partners, a leading Australian private equity firm. The investment positions MySite for a new phase of…

8 December 2023 Advent Partners (Advent) is pleased to announce the sale of Frosty Boy Holdings Pty Ltd (Frosty Boy or the Company) to Kent Corporation (Kent) based in Iowa, USA.  This marks a significant milestone in Frosty Boy's growth… A SUCCESS STORY WITH ADVENT PARTNERS For a founder considering partnering with Advent, I would strongly recommend that they take the leap. I found my experience with Advent to be the most rewarding of my career. Advent brought expertise…

Advent NewsDecember 2022 Download TO OUR INVESTORS, FOUNDERS AND FRIENDS We’ve finally turned the corner in 2022 after two years of COVID! It was so rewarding (and such a relief) to get back to normality, work with our colleagues face-to-face… Transcript Some of the key strategic projects executed during our partnership with Advent included refining a franchisee partnership model, which made earning a SILK site more accessible to a larger pool of potential partners, accelerating our network clinic expansion…

Congratulations to Zero Latency VR on its partnership with Games Workshop to develop a first-of-its-kind interactive VR adventure based on the world-renowned Warhammer 40k: Space Marine franchise! The new game will allow up to 8 players to suit up and… Transcript My name is Symon Vegter, I'm a Partner with Advent Partners and I'm also the Co-Lead of Responsible Investing at Advent.  I've been in the Private Equity industry for 16 years now and for over 22 years, I… Transcript What I really liked was that Advent essentially backs the management team to run the business. The pace of change of growth certainly accelerated, and they provided the people and tools to help us during that growth. We…