Private equity backed Swedish company acquires education recruitment business

In a strategic move to bolster its position in the education recruitment sector, Sweden-based Humly has acquired M2 Education, an education staffing firm with offices in Newcastle and Preston. This acquisition marks Humly's fifth in the UK and is anticipated to fortify its stance in the education recruitment domain.

M2 Education, renowned for placing teachers, teaching assistants, and tutors in primary, secondary, and special education needs (SEND) establishments across Newcastle, Cumbria, and Lancashire, will integrate Humly's technology into its operations to enhance service delivery to its existing and prospective clientele. While the day-to-day operations of M2 will continue under its current management team, the founders will remain onboard for a transition period before their eventual exit.

Turnover figures were not revealed in M2 Education Ltd’s latest filed accounts to 31 August 2022. Shareholders funds stood at nearly £1,481.343 with cash reserves of £581,000.

Mark Birnie, reflecting on the acquisition, stated, "We are exceptionally proud of the position we have carved out in the education staffing sector, generating strong relationships with both candidates and schools to deliver high-quality, compliance-focused services and solutions. There are lots of synergies between M2 and Humly and we are confident that its international market experience and technology will help accelerate M2's growth."

Humly, a tech-centric education staffing company backed by private equity, has been advised by a team of prominent consultants throughout the deal. Carl Swansbury, partner and head of corporate finance at RGCF, along with CF manager Adam Tindale and CF executive Ben Kain, provided advisory services to the founders. Legal counsel was extended by Swinburne Maddison, spearheaded by corporate and commercial partner, Craig Malarkey, while tax advice was rendered by MHA Moore and Smalley. BDO undertook financial due diligence on behalf of Humly, with legal counsel provided by White & Black Solicitors.

Alex Shanks, Humly’s head of M&A and integration, commented, "M2 Education is an ideal addition to our UK portfolio of education staffing businesses. Mark, Melissa, and the management team have built a solid, dynamic business, which will benefit further from the introduction of our intuitive and effective technology solutions alongside being part of our network."

Carl Swansbury further noted, "Humly is a highly respected international, PE-backed business in the sector and will bring added value and technological advances to M2 Education. This transaction not only demonstrates RGCF’s ability and knowledge of the education staffing sector but also our expertise in advising on the sale of UK businesses to PE-backed, international acquirers. I look forward to seeing M2 Education continue to go from strength to strength as part of Humly."

The acquisition is poised to pave the way for enhanced technological integration and operational efficiency for M2 Education, while simultaneously expanding Humly’s footprint in the UK education staffing sector.

Also read: Private equity helps recruitment buck declining M&A trend

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