EdTechJan2013Report PDF

January 2013
Education Technology
U S Ed ucatio n Re sea rc h:
Jeffrey M. Silber
BMO Capital Markets Corp.
(212) 885-4063
jeff.silber@bmo.com
Associate: Paul Condra
(212) 885-4176
paul.condra@bmo.com
Highlights Our View

 We believe the education technology sector is primed Est. Market Growth: 4.1% (3%-5.3% by subsector)
for growth. While there is limited information, based on
Attractive Segments: K-12, Postsecondary and
Gartner and IDC estimates, roughly $33.9 billion was Corporate Training
spent on ed-tech in the US in 2012. We forecast 4.1%
Important Trends: Large addressable markets,
CAGR growth through 2017, with spending reaching
shortfalls of current system,
$41.4 billion that year. regulatory pressure for improved
outcomes, disruptive
 However, investments in this sector may be growing technologies, scaling
at an even faster rate. There are hundreds, if not opportunities
thousands of companies in the ed-tech space, though
most of them are small. Given the constant improvements
in technology and the importance of education to the
economy, ed-tech – especially in the early-stage arena –
has attracted many savvy investments; according to the
National Venture Capital Association, VC investment in
education technology companies grew at a CAGR of
about 14% from 2002 through 2011 to over $400 million
 There are many drivers that should fuel continued investments as well as demand for ed-tech products and
services. We estimate that nearly $1.29 trillion was spent on education in the US in 2012, making it the second-
largest industry following healthcare. While the US was once the clear leader in global education, that is no longer
the case in the K-12 sector – the largest of the education markets – with fears that the postsecondary sector may
soon follow down that path. We believe disruptive changes in technology (e.g., mobile, SAAS, online) along with
growing budgetary pressures on schools to find less expensive alternatives, and growing regulatory pressure for
improved student outcomes and better analytics will spur further need for education technology products and
services.
 Ed-tech transactions are valued as “tech” deals, rather than “ed” deals. It is no secret that the publicly traded
education stocks – dominated by the postsecondary schools – are out of favor, with few near-term catalysts to move them
in the right direction, in our view. However, education technology transactions – many of them in the early stage – have
been robust, with valuations more indicative of technology stocks (i.e., single-digit revenue multiples and double-digit
EBITDA multiples), rather than the subpar multiples at which most education stocks trade.
Please refer to pages 85 to 86 for Disclosure Statements, including the Analyst's Certification. For Important Disclosures on
the stocks discussed in this report, please go to http://research-us.bmocm.com/Company_Disclosure_Public.asp.
Education Technology BMO Capital Markets
A member of BMO Financial Group 2 January 2013

Table of Contents
Overview ....................................................................................................................................5
Technology in the K-12 Sector ...................................................................................................7
Technology in the Postsecondary Sector .................................................................................22
Technology in the Corporate Training Sector...........................................................................27
Valuation and Recent Transactions .........................................................................................37
Ed-Tech Company Profiles ......................................................................................................41
Appendix .............................................................................................................................43-83
Exhibit No.
Exhibit 1. US Education Technology Revenues (2010-2017E) ..................................................5
Exhibit 2. Venture Capitalist Investment in Education Technology (2002-2011) ........................6
Exhibit 3. US K-12 Technology Revenues (2010-2016E)...........................................................7
Exhibit 4. Sources of Technology Funding for US K-12 Schools................................................7
Exhibit 5. K12 Software Spending (2010)...................................................................................8
Exhibit 6. US PreK-12 LMS Sales (2011-12 – 2014-15)...........................................................10
Exhibit 7. PreK-12 School Market Share of LMS Vendors .......................................................11
Exhibit 8. Technology Hardware Use and Penetration in K-12 Schools (Fall 2008).................12
Exhibit 9. Technology Hardware Use and Penetration in K-12 Schools (2011-2012) ..............12
Exhibit 10. Online Content Providers to Public K-12 Schools (2008 Survey) ...........................15
Exhibit 11. Percentage of Students in Online Courses by Grade Level (2008 Survey) ............15
Exhibit 12. K-12 Instructional Media and Services Market (2004-2017E).................................17
Exhibit 13. K-12 Textbook Market (2010-2014E) .....................................................................17
Exhibit 14. Global Textbook Market by Type (2009-2014E) .....................................................18
Exhibit 15. Textbook vs. iText Cost Per Student ......................................................................20
Exhibit 16. K-12 Basal Publishing Market (2004-2017E)..........................................................20
Exhibit 17. K-12 Supplemental Publishing Market (2004-2017E).............................................21
Exhibit 18. US Postsecondary Technology Revenues (2010-2016E) ......................................22
Exhibit 19. Postsecondary LMS Market Share (2006 and 2011)..............................................24
Exhibit 20. Information on Selected MOOCs............................................................................25
Exhibit 21. Corporate e-Learning Revenues (2001-2017E)......................................................27
Exhibit 22. Average % of Learning Hours by Delivery Channel (1999-2011) ...........................28
Exhibit 23. Learning Technologies Used (2011).......................................................................28
Exhibit 24. Corporate e-Learning Content Revenue (2001-2017E) ..........................................30
Exhibit 25. Top Training Content Companies (2012) ...............................................................31
Exhibit 26. Corporate e-Learning Services Revenue (2001-2017E).........................................32
Exhibit 27. e-Learning Infrastructure Solutions Revenue (2006-2017E) ..................................33
Exhibit 28. Vendor Hosted (SaaS) and Local LMS Prices (2009) ............................................34
Exhibit 29. Management Systems Revenue (2006-2017E)......................................................34
Exhibit 30. Communication Systems Revenue (2006-2017E)..................................................35
Exhibit 31. Top VILT Technologies Used (2010)......................................................................36
Exhibit 32. Education Technology Recent Transactions .....................................................38-40
Exhibit 33. EdTech Map Overview ...........................................................................................41


Overview
Each year, we produce our Education and Training overview (“The Bible”) as part of our
annual Back to School conference. While we do address the education technology (“ed-tech”)
market as part of that report, we believe it is an exciting sub-sector that deserves its own
focus. Please refer to that larger document to gain a better understanding of the key drivers
underlying the education industry and its major segments – K-12, postsecondary and
corporate training.
The education technology (“ed-tech”) market has been undergoing robust growth for some
time, but we believe this industry has been gaining significant momentum in recent years. We
believe the growing pressure on educators to do more with less, combined with the rapid
development of Web 2.0 technologies and the deep pockets of venture capitalists, private
equity and philanthropies has spurred significant growth in this industry, which is now
entering a critical stage of mass adoption within the education system.
$33.9 billion spent It was difficult to gauge the size of the ed-tech market given various data sources and market
on education segment definitions. However, using data obtained from Gartner and IDC, we believe that
technology in roughly $33.9 billion was spent on education technology in the in 2012. Based on these
2012; forecast to estimates and their forecasts, we project US ed-tech spending will increase at a 4.1% CAGR,
increase 4.1% reaching $41.4 billion in 2017 (see Exhibit 1).
CAGR through
2017 Exhibit 1. US Education Technology Revenues (2010-2017E)
$45 K-12 Postsecondary Corporate
40
35
Total Spending ($ in bil.)
30
25
20
15
10
2010 2011 2012 2013 2014 2015 2016 2017
Source: Gartner and IDC estimates.
VC investing in But this only tells part of the story. We believe the boom in new education technology
education startups has been partially fueled by growth in venture capitalist investing in the space.
technology According to the National Venture Capital Association, VC investment in education
increased at a technology companies grew at a CAGR of about 14% from 2002 through 2011 to over $400
14% CAGR from million (see Exhibit 2).
2002-2011

Exhibit 2. Venture Capitalist Investment in Education Technology

(2002-2011)
$500
450
400
350 14%
300 CAGR
250
200
150
100
50
2002 2011
Source: National Venture Capital Association
While the education industry poses several challenges – with the most significant being the
high degree of regulation and sensitivity to public sentiment, in our view – we believe there
are several reasons technology investors are attracted to this market, including:
 Large addressable market with strong consumer demand characteristics
 Apparent failures of current model, and appealing “social” mission
 An industry “ripe” for disruption (mobile, SAAS, online)
 Growing budgetary pressure on schools to find cheaper alternatives
 Growing regulatory pressure for better student outcomes and analytics
 Scaling opportunities
 Abundant funding opportunities (grants, foundations, student loans, federal)
In this report, we take a closer look at the size, growth and current developments in the
educational technology industry. While we have divided the report between the K-12 and
Postsecondary education sectors, some of the data is only available as an aggregate of the
entire education industry. Additionally, given the nature of technological solutions, we
believe many products in this industry are relevant to both the K-12 and Postsecondary space.

Technology in the K-12 Sector
A 2011 report by Innosight Institute found that schools spent more than $60 billion equipping
students with computers over the past 20 years. More recently, advancements in software,
mobile technologies and cloud-based computing have prompted new companies to enter this
market with innovative, easy-to-use and affordable content and tools, such as online learning
aids, learning management systems, interactive whiteboards, tablets, e-readers and course
management software.
K-12 ed-tech Looking at only the K-12 portion of the Gartner data, roughly $8.8 billion (about 43% of the
growing faster total) will be spent on technology in the US K-12 sector in 2012. Gartner forecasts this
than spending will grow at a roughly a 3.6% CAGR, reaching $10.1 billion in 2016, led by
postsecondary increases in software and services (see Exhibit 3).
ed-tech;
estimated 3.6% Exhibit 3. US K-12 Technology Revenues (2010-2016E)
CAGR through $12 Software Internal Services Hardware IT Services Telecommunications
2016 10
Total Spending ($ in bil.)
2010 2011 2012E 2013E 2014E 2015E 2016E
Source: Gartner estimates.
Most of K-12 ed- A 2012 survey by Simba Information found that the primary source of technology funding for
tech budget is at most schools was at the district level, and is thus highly sensitive to economic fluctuations
district level (see Exhibit 4). We believe this has led to large discrepancies in technology spend across
districts – while some schools are purchasing new iPads for students, others still use computer
hardware purchased in the 1990s.
Exhibit 4. Sources of Technology Funding for US K-12 Schools

District budget 33.5%
School general budget 22.5%
Don't know 15.2%
Federal funding 11.0%
Other 5.5%
District bond 4.4%
State/regional agency grant 4.2%
Private grant 3.7%
Source: Simba Information
We have provided details on the various component of K-12 ed-tech spending below.

K-12 Software Market

Software is Using Gartner’s definition, software is the largest component of US K-12 technology
fastest growing spending, reaching an estimated $2.55 billion in 2012, or about 29% of all spending. It is
component of K- expected to be the fastest-growing component of K-12 technology spending going forward,
12 ed-tech; increasing at an 8.9% CAGR, reaching nearly $3.6 billion in 2016.
estimated 8.9%
CAGR through The Software & Industry Information Association (SIIA) pegs the K-12 software market as
2016
being much larger, estimating that $7.5 billion was generated in K-12 software and digital
content/resources in 2010 (latest available: see Exhibit 5).
Exhibit 5. K12 Software Spending (2010)

$7.5 Billion Industry
Instruction
Content
Support
$3.2b (42%)
$2.6b (35%)
Platform &
Admin.
tools
$1.7b (23%)
Source: SIAA
Learning We believe Learning Management Systems (LMS) are likely one of the largest software
management expenditures for schools, and have been a core area of investment in education technology in
systems (LMS) recent years. Originally designed as an administrative tool to help manage and organize the
classroom, LMS have evolved into virtual eco-systems that link students, teachers, and
parents in an online environment where all aspects of learning can be monitored, analyzed,
and managed.
LMS have many areas of focus, including course and assignment delivery, assessment
tracking and analytics, social and collaborative networking and demographic and socio-
economics student information systems. Modern LMS increasingly utilize cloud-based
technologies and open source development to enable real-time access and easier installation
and configuration of content and user functions. While various LMS do exist as separate
systems, the lines between them are increasingly becoming blurred by hybrid systems that
incorporate several functions as single solutions.
While LMS have been around since the 1990s, adoption quickened following the 2001 No
Child Left Behind (NCLB) legislation, which required schools to report performance data in
ways only supported by electronic data systems. While these systems may have initially been
geared more toward the managerial functions of running a school and tracking student
performance, recent growth has also been driven by the increase in digital curriculum use and
virtual class initiatives. Additionally, the move to common core standards and the economic
stimulus package in 2009 also incentivized investments in LMS. We believe these drivers

along with improving technology and growing acceptance of the benefits of LMS have driven
widespread adoption in recent years. According to a Simba Information survey, the
penetration rate of LMS in K-12 schools ranges from 68% to 88% depending on how LMS is
defined.
There are several established companies in this space, including Blackboard, Plato Learning
and Pearson (PSO), which recently purchased SchoolNet. However, there have been many
startups in recent years offering competing products, including Compass Learning,
Desire2Learn, EdModo, Moodle and Sakai. As service offerings vary widely, the definitions
of different kinds of LMS are constantly changing. However, we have provided the three
following categories of LMS as defined by Simba Information. We note that these companies
also provide LMS products to the postsecondary education space, and believe these
definitions are roughly consistent across both K-12 and higher learning.
1. Traditional LMS. These represent standalone learning management systems and include
leading commercial open-source products such as Blackboard, Desire2Learn, and
Moodle. Traditional LMS include the full suite of products that provide the infrastructure
for online course delivery, collaboration, and management functions. These are open-
systems in that they can work with content and technology provided by outside
companies.
2. LMS “Lite.” These are newer systems that offer alternatives to the traditional model and
allow more flexibility both in terms of price and customization. These systems generally
have fewer features but are more user-friendly and focus on specific functions such as
course supplements, data management, or augmenting a current LMS with a social
networking function. These products are sometimes available free online with costs
incurred at varying service levels. These include Edmodo, Schoology, and Sophia.
3. Enterprise platforms. These are broad infrastructure solutions that integrate an LMS
with other enterprise functions such as student information systems or curriculum
management. They are often marketed by publishers and tied to proprietary products as is
the case with Houghton-Mifflin Harcourt’s Pinpoint.
PreK-12 LMS Given these broad definitions, it is difficult to gauge the size of the LMS market. However, in
market expected its estimate of market size, Simba Information defined an LMS as organization software that
to grow at a 7.3% enables the administration, tracking, and reporting of student information across all types of
CAGR through education activities; the delivery of courses; and the facilitation of collaboration and
2014-2015 communication. As shown in Exhibit 6, Simba estimates the US PreK-12 market for LMS
amounted to roughly $305 million in 2011-2012, and forecasts it to grow to about $377
million in 2014-2015, a CAGR of about 7.3%.

Exhibit 6. US PreK-12 LMS Sales (2011-12 – 2014-15)

$400 LMS Sales % change y/y 8.5%
8.0%
350
7.5%
($ millions)
300 7.0%
6.5%
250
6.0%
200 5.5%
2011-2012 2012-2013 2013-2014 2014-2015
Source: Simba Information and BMO Capital Markets.
Drivers of LMS adoptions in schools include:
 States efforts to comply with data management requirements recommended by the

Department of Education (this was part of the requirement for receiving stimulus aid
following the Great Recession).
 The growing use of online virtual schools (fully online school) and blended learning (a
mix of online and classroom based learning). According to Innosight Institute, the
number of students taking online courses has grown from 45,000 in 2000 to over 4
million in 2010.
 Potential educational benefits of using an LMS.
We believe cost remains a key barrier to LMS adoption. In a 2012 survey by Simba, more
than 43% of schools cited cost as the biggest impediment to LMS implementation. However,
we believe this may drive schools to experiment with lower-cost LMS “Lite” technologies,
which has helped drive innovation in the industry.
Most of the purchase decisions on LMS are still made at the district level, but we expect
cooperation at the state level to increase as states pursue common standards. According to
Simba Information, commercial LMS providers are the most common, accounting for 42.9%
of district systems, this is followed by 11.8% developed within the district and 4.7% made
available by the state.
PreK-12 LMS The commercial LMS industry is very fragmented and competitive with many providers who
market is very operate within different niches. According to a Simba survey, Moodlerooms (owned by
fragmented Blackboard) was the most common LMS provider, followed by Pearson (see Exhibit 7).

Exhibit 7. PreK-12 School Market Share of LMS Vendors

Other 52.6%
Moodle (open source) 18.5%
Pearsons Learning Studio 11.9%
Blackboard (including Angel and Learning and Elluminate) 6.6%
Houghton Mifflin Harcourt Pinpoint 4.1%
Global Scholar Pnnacle Suite 2.9%
STI Classroom 2.5%
Desire2Learn 0.6%
It's Learning 0.4%
Source: Simba Information.
Included in the “Other” category, which makes up more than half of this market, are
companies that provide some LMS capabilities but are not considered full LMS providers.
These include CompassLearning’s Odyssey, Edmodo, Houghton Mifflin’s Data Director
McGraw Hill Education’s ConnectED, Pearson’s (PSO) Successmaker, and Plato Learning
Environment. We believe this high level of fragmentation will continue to drive M&A in the
sector as companies seek to provide the full suite of technology offerings.
K-12 Hardware Market

K-12 hardware Using Gartner’s definition, hardware spending, and computers (e.g., networking equipment,
sector estimated PCs, notebooks, tablets and other electronic devices) represent roughly 15% of total US K-12
2.4% CAGR technology spending, reaching roughly $1.31 billion in 2012. Gartner forecasts roughly 2.4%
through 2016 CAGR growth to $1.43 billion in 2016.
These products are generally provided by the largest global computer companies including
Apple (AAPL), Dell (DELL), Hewlett-Packard (HPQ), Panasonic, Sony, and Samsung.
However, there are many niche companies introducing products to the education market (e.g.,
Amplify Education [part of News Corp.], Brainchild, Educad Learning Solutions, EduMetry,
eInstruction Corp.)
Almost all US A May 2010 (latest available) report by the NCES found that 97% of US public schools have
public schools instructional computers with internet access inside classrooms and that the average number of
have computers computers per classroom was three. Using average class sizes per the OECD (2007-2008
with internet school year), this amounts to roughly 7-8 students per computer (see Exhibit 8).
access

Exhibit 8. Technology Hardware Use and Penetration in K-12

Schools (Fall 2008)
Computing and Technology Hardware
Schools with fixed instructional computers in classroom 97%
School with mobile laptop cart 58%
Schools with available take-home computers 6%
Average number of fixed computers per classroom 3
Average number of students per computer (including mobile laptops) 3
% of schools Students/Teachers
Technology Devices with device per device
Handheld device (i.e. blackberry) for teachers 15% 4
Handheld device (i.e. blackberry) for students 4% 21
LCD and DLP Projectors 97% 32
Videoconference Units 22% 308
Interactive Whiteboards 73% 65
Classroom/student response systems 38% 144
Digital cameras (still and video) 93% 74
MP3 Players/iPods 13% 69
Document cameras (image transferring devices) 52% 59
Distribution of instructional computers % of computers

Laptops on carts 14%
Classrooms 51%
Computer labs 27%
Library/Media centers 6%
other 2%
Wireless Access
No access 22%
Only from mobile laptops to cart 9%
Access in part of school 30%
Access in whole school 39%
Disagree Agree
Tech infrastructure is adequate 23% 77%
Funding for technology is adequate 60% 40%
Source: National Center for Education Statistics and BMO Capital Markets.
Younger students According to the Simba Information survey, students at elementary schools generally had
have greater more access to technology than those at middle and high schools. Among the most commonly
access to used products were computers, interactive whiteboard, and projectors, although tablets and e-
technology than readers have made significant inroads considering the short period of time schools have been
their older using them (see Exhibit 9).
counterparts
Exhibit 9. Technology Hardware Use and Penetration in K-12
Schools (2011-2012)
Elementary Middle/Jr.High High School Don't Know
Interactive whiteboards 73.7% 57.0% 53.9% 1.1%
Projectors 79.5% 63.2% 58.6% 0.9%
Document camera 61.6% 46.7% 44.4% 6.5%
Desktop computers 82.3% 63.2% 57.4% 0.4%
Laptop/netbook computers 67.4% 56.7% 53.9% 1.6%
Tablet computers/iPads 36.3% 25.4% 28.4% 9.3%
Ereaders 12.3% 12.5% 13.9% 19.1%
MP3 players/iPods 19.8% 16.0% 15.8% 18.2%
Smartphones 3.9% 4.4% 9.3% 21.1%
Student ressponse systems/clickers 43.9% 37.4% 35.6% 8.9%
Source: Simba Information and BMO Capital Markets.
However, despite the growing prevalence of in-school computing, we believe several

implementation hurdles remain, including:

 Implementation, support, and infrastructure: This is especially difficult for large wireless
or mobile upgrades with the aim of supporting hundreds or thousands of devices. While
unique technology solutions may resolve some of these issues, tech support demands
generally increase.
 Professional development. New technology requires more training for teachers and
administrators to ensure better ROI. We believe these demands have spurred product
developers to create technology-based training solutions through online workshops and
videos.
 Integration and interoperability. We believe integration across networks and devices

poses considerable integration hurdles and that users are wary of products that lock them
into full solutions. However, this is also fueling demand for non platform-specific tools
and content.
K-12 IT Systems Market

Another portion of K-12 technology spending includes systems that help school districts
manage and analyze back-office operations, as well as administrative and transactional data.
Traditionally, these enterprise-level applications were primarily operated in isolation from
instructional activities and were reserved for larger school districts with more than 25,000
students. Recently – and we believe NCLB had stimulated this change – the market among
medium- to small-sized school districts has grown as schools look to integrate HRFPS and
instructional data. This has reduced the deal size, which was typically in excess of $1 million.
Future growth in the HRFPS segment is expected to be driven by the trend of connecting
entire districts through LMS, as well as the need for data-driven decision making. Still, these
complex business management systems have high switching costs, and therefore, we project
somewhat limited year-over-year growth. Leading providers in this segment include IBM
(IBM), Lawson Software, Oracle (ORCL), Pearson (PSO), and SunGard.
K-12 Online Schools

Online learning generally consists of two formats: 1) fully online virtual schools (100%
online); and 2) blended learning (combined online with in-class learning).
Drivers of K-12 online learning include technological advancements, greater access, and a
robust market of new product development from new and existing players. Additionally, we
believe online learning has benefitted from an overall positive legislative environment and
greater public support.
Various estimates Some estimates of the size of this market include the following:
on the K-12 online
school market,  The National Alliance for Public Charter Schools estimates that of the 4,921 charter
but all show a schools in 2009-2010, about 219 (4.5%) were virtual schools and 134 (2.7%) were hybrid
small but robust virtual schools.
segment
 According to the NCES, in the 2009-2010 school year (latest data available), there were
an estimated 1.82 million “enrollments” in distance education courses in K-12 school
districts, almost all of which were online courses. About 74% of these enrollments were
in high schools.

 In 2011, approximately 40 states operated or authorized online schools that students may
attend full or part time, with 30% of high school and 19% of middle school students
having taken at least one course either blended or fully online. In addition, 30 states had
at least one full-time virtual school.
 The Evergreen Education Group estimates there were approximately 250,000 students
enrolled in full-time online schools in the 2010-2011 school year -- up from 200,000 in
the prior year. This would represent roughly 0.5% of the 49.5 million students in US
public schools in that year.
We provide some detail on differing models based on research provided by Evergreen’s

Keeping Pace with Online Learning below:
 District-level online and blended learning. Online and blended learning programs
created by a single district primarily for students in that district, including fully online
programs, blended learning, summer school, credit recovery, alternative high schools, AP
courses and other electives or individual courses. These programs are funded primarily
by the district out of public funds intermingled between the online program and the rest
of the district. In most cases, there is no difference in funding between online students
and students in the physical setting.
 Full-time multi-district schools. Online schools that typically serve students full-time
from across multiple districts and often an entire state. There are 30 states offering full-
time online education programs to an estimated 250,000 students. These schools often are
charter schools affiliated with national organization, such as Pearson’s (PSO)
Connections Academy, K12 (LRN), or DeVry’s (DV) Advanced Academics, which
provide courses, software, teachers, management, and other logistics. These schools are
funded through state public education funds that follow the student, appropriations, fees
and/or grants. Roughly 75% of enrollment in these schools is through Education
Management Organizations (EMOs) such as those just listed.
 Consortium and educational service agency programs. This model is becoming

increasingly popular as small and mid-size districts seek to provide greater online
offerings to their students. Districts share costs and pool resources and knowledge to
create educational consortiums with the scale needed to efficiently offer online programs.
While some of this has been motivated by a desire to provide better online educational
offerings, districts are also feeling the pressure to prevent students from transferring to
other online schools (and taking their funding with them). These programs are funded
through course fees or member schools, and mostly provide supplemental blended-
learning and/or credit recovery options to students. Some of these groups partner with
other state-level organizations, non-profit organizations, and colleges. While some
consortia develop their own educational platforms and material, others share content-
license, LMS and other technology fees. Examples include Virtual High School Global
Consortium (VHS), founded in 1995 and combines 770 schools from 34 states and 51
international schools; The Wisconsin eSchool Network consortium of 11 school districts;
Franklin Virtual Academy of Pennsylvania, which combines local districts to compete
directly with cyber schools.
 State virtual schools and online learning initiatives. This model is generally created
through legislation, administered by a state education agency and receives funding by
state appropriations or specific state grants (with some exceptions, such as the Florida

Virtual School, where funding follows the student). As of fall 2011, 40 states had state-
led online learning, accounting for 536,272 course enrollments. While this model is
growing strongly in many states (such as Florida), it has come under pressure in others
where states are unable to meet funding requirements or where district consortia are
increasingly providing supplemental courses. Some of the largest state virtual schools
include Florida Virtual School, North Carolina Virtual Public School, and Alabama
ACCESS.
We believe the growth of public online schools represents an enormous opportunity for
vendors of educational technology products. According to the 2008 Sloan survey (latest
available), independent vendors were the third most common supplier of fully online content,
and the fourth most common supplier of blended programs (see Exhibit 10).
Exhibit 10. Online Content Providers to Public K-12 Schools (2008

Survey)
% of Districts Using Provider
Instruction Providers Fully Online Blended
Postsecondary institution 47% 27%
State virtual school in state (i.e., state-centralized K-12 courses) 41% 15%
Independent vendor 35% 18%
Education service agences (e.g., BOCES, COE, IU) 29% 15%
Another local school district or other district in state 21% 19%
District (i.e., delivered centrally from the district) 17% 35%
State virtual school in another state 10% 2%
Cyber (i.e., online) charter school in district 9% 7%
Other schools in district 6% 5%
Districts or schools in other states (excluding virtual schools) 5% 2%
Other 2% 2%
Source: Sloan Consortium and BMO Capital Markets.
K-12 online We believe online learning is more prevalent at the higher grade levels, where demand for
schools more credit recovery, AP classes, and other alternative learning is higher, whereas lower grade
prevalent at levels require more student/teacher interaction and supervision (see Exhibit 11; 2008 survey is
higher grade latest data available).
levels
Exhibit 11. Percentage of Students in Online Courses by Grade
Level (2008 Survey)
Grade Fully Online Blended Total
K-5 21% 1% 14%
6-8 15% 20% 17%
9-12 64% 78% 69%
Other <1% <1% <1%
100% 100% 100%
Source: Sloan Consortium and BMO Capital Markets.

In many instances, the virtual school model is similar to the charter school model, where a
not-for-profit entity receives the charter and hires a private management firm, or an EMO, to
operate the school. According to the National Education Policy Center, there were 93 EMO-
operated virtual schools in 2010-2011, with roughly 85% of these operated by for-profit
EMOs. Of the schools operated by for-profit EMOs, 68 are run by five large-sized
organizations: Pearson’s (PSO) Connections Academy, K12 Inc. (LRN), Leona Group,
Mosaica Education, and White Hat Management.
K-12 online Unique drivers of K-12 online learning include:

schools growth
drivers and  Credit recovery and supplementary courses.
headwinds
 Parental choice or child need for an online or distance environment.
 Higher quality of online offerings and improved access.
 The increasing acceptance of charter schools and raising of enrollment caps.
 The growth of district-led online schools and online consortium schools.
 Philanthropic initiatives and grants such as the Bill and Melinda Gates Foundation and
the Dell Foundation.
Hurdles to growth include the following:
 Fiscal caps. While virtual schools may reduce per-student funding costs, funding models
where money does not follow the student are vulnerable cuts in state and federal spending
programs.
 Student outcomes. As blended course learning becomes more understood, there are no
definitive studies on the outcomes of 100% online education. In fact, the ED’s Annual
Yearly Progress data (AYP) found many fully online for-profit EMO schools performed
below ground-based peers. We believe this is driving more district-led online school
models as parents, teachers, and administrators seek non-profit, local alternatives that
often have a ground-based component.
 Enrollment caps. Many states put limitations on virtual school enrollment, prohibit
cross-district enrollment or require certain teacher certifications. We believe online
schools will continue to be subject to strong enrollment regulation.
 Accreditation. As online school accreditation is relatively new and uncharted territory,

we believe substantial risk remains to both consumers and providers, as consumers may
enroll in un-accredited schools while provider may be subject to evolving accreditation
standards.
We believe the relatively mixed M&A record in this space speaks to the difficulty the private
sector has had in building for-profit online schools in this sector. For example, in January
2007, Apollo Group (APOL) acquired Insight Schools, which served roughly 600 students in
Washington State, for $15.1 million. However, after continuing losses, APOL sold the
business in February 2011 to the Washington Post’s (WPO) Kaplan unit. Then in May 2011,
K12 Inc. (LRN) purchased Kaplan’s K-12 assets including Insight Schools. Also, in October

2007, DeVry (DV) acquired Advanced Academics, which operated virtual high schools in six
states, for $27.5 million. Then, in July 2012, the company announced it was taking a $19
million impairment charge at this unit in FY4Q12 owing to disappointing revenue
performance.
K-12 US K-12 Publishing Market

instructional We would be remiss not including the publishing sector when analyzing the K-12 ed-tech
media and market. Unfortunately, there are a number of different estimates of this market size. Using the
services (e.g., Instructional Media and Services component of private equity firm Veronis Shuler
publishing); Stevenson’s (VSS) annual Communications Industry Forecast (2011 edition) and by removing
estimated 1.6% the K-12 tuition component of its forecast, we calculate that an estimated $8.2 billion will be
CAGR through spent on this market in 2012. Using VSS estimates, we project that this spending will reach
2017 roughly $8.9 billion in 2017, growing at a 1.6% CAGR over that time (see Exhibit 12).
Exhibit 12. K-12 Instructional Media and Services Market (2004-2017E)

Basal Supplemental Testing and assessment
$7 15%
Digital-based materials Total y/y change
6 12%
Revenues (Billions)
Annual % change
9%
5
6%
4 3%
3 0%
-3%
2
-6%
1 -9%
0 -12%
04
05
06
07
08
09
10
11
E
12
13
14
15
16
17
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Note: Shaded area represents recessionary period. Source: Veronis Suhler Stevenson Communications Industry Forecast (August 2012) and
BMO Capital Markets.
K-12 global Outsell has a different definition - and a more aggressive forecast - pegging the K-12 global
textbook market textbook market at $13.2 billion in 2012, and expects it to grow at an 8.5% CAGR through
(different 2014 to $15.6 billion (see Exhibit 13).
definition)
estimated 8.5% Exhibit 13. K-12 Textbook Market (2010-2014E)
CAGR through $18,000 K-12 Annual % change 14%
2014 16,000
12%
14,000
10%
Annual % Change
12,000
Market ($ mil.)
10,000 8%
8,000 6%
6,000
4%
4,000
2%
2,000
0%
2009 2010 2011 2012E 2013E 2014E
Source: Outsell Inc’s ”What’s Next for Textbooks?” (March 2012 and BMO Capital Markets.
Shift to digital Historically, this segment has been dominated by large publishers of traditional textbooks,
textbooks such as Houghton Mifflin Harcourt, McGraw-Hill Education, and Pearson (PSO). However,

the textbook business has been going digital; as shown in Exhibit 14, just under 80% of all
textbooks sold globally in 2012 (including in postsecondary schools) were in the print format,
down from nearly 96% in 2009. We believe this shift will continue, and that it will put
pressure on traditional publishers to increase digital offerings.
Exhibit 14. Global Textbook Market by Type (2009-2014E)

100% 96% Digital Textbook Content Print Textbook Content Whole Course Solutions
93%
90% 87%
79%
80%
69%
70% 65%
60%
50%
40%
30%
16% 16% 17% 18%

20%
12%
8% 9%
10% 4% 5%
2% 2% 3%
0%
2009 2010 2011 2012E 2013E 2014E
Note: Outsell Inc’s ”What’s Next for Textbooks?” (March 2012) and BMO Capital Markets.
Other research points to the same trend:
 According to Simba Research, digital products were 26.7% of the US preK-12 publishing
market in 2009, but increased to 29.5% in 2011.
 According to the Association of American Publishers’ (AAP) BookStats, the K-12 book
publishing segment generated roughly $5.5 billion (about 20%) of the $27.9 billion in US
publishing revenues in 2010 (latest data available).
Drivers of digital We believe some of the drivers of digital content adoption include:
content adoption
 Custom content. Digital content often allows schools to create unique, customizable
educational solutions that meet specific needs of schools and teachers or standards
required by the district or state.
 More content. Digital products allow easier access to a broader range of learning content
across skill levels and enable schools to offer online programs or courses that otherwise
could not be funded.
 Price and convenience. Owing to their customizable features and digital delivery
model, digital products enable small low-cost incremental online purchases at the school
and classroom level as opposed to large and costly district-wide purchases of traditional
print products.
 Mobility. Cloud-based and SaaS products can be used by students, parents, and teachers
at home and at school, and allows collaborative data sharing or lesson planning across
districts and schools.

 Assessment capability. Digital products enable comprehensive student learning

analytics and give teachers the ability to drill down into the performance of individual
students.
 Increased acceptance/demand. Today’s teachers and parents mostly grew up with

some form of electronic learning tools and are more frequent users of online and social
media technology, driving expectations that schools provide digital curriculum.
 District requirements and regulations. Several states are passing laws and funding
initiatives to increase the use of digital content and online courses in schools. In addition,
the assessment arm of the Department of Education’s (ED) Common Core Standards will
be all digital, requiring schools to have this capability.
 Greater access. Increased “wiring” of schools over the years and access to high-speed
internet have enabled more use of digital products. Government subsidy programs, such
as the ED’s E-Rate program (started in 1997) also help reduce costs.
We believe digital curriculum not only changes how students learn, but how schools make
purchasing decision. For example, Apple’s (AAPL) iTextbook initiative (a partnership with
the largest publishers including Houghton Mifflin Harcourt, McGraw Hill Education and
Pearson) enables low-cost iPad textbook purchases, which can be continuously updated.
Companies are also developing self-publishing software (such as Flexbooks) enabling easy
creation of proprietary digital textbooks.
Threat of digital However, we believe digital curriculum poses a longer-term threat to traditional publishing.
textbooks to According to Global Equities Research, the cost benefits of selling electronic books include:
traditional
publishers  No used book market: 35% to 50% of the textbook sales are used books for which
publishers get zero revenue.
 No supply chain markup: In the current model, textbooks go from the publisher to the
distributor to the wholesaler to the retailer and then to the end user (i.e., student). The
supply chain markup is 8%-15% at each step, totaling between 33% and 35%.
 Zero distribution costs, thanks to the magic of the Internet.
 Cheaper production: iBook production costs are estimated to be 80% less than the cost of
producing a printed book.
 Favorable supply/demand curves: At $14.99, publishers might sell 40%-60% more books
than they could at $125.
Demise of print Nevertheless, we believe the demise of print-textbook is still a long ways off. For one thing,
textbook may take digital textbooks are relatively new and it will likely take several years before their impact on
some time student learning is better understood and accepted. Additionally, we believe funding for
digital devices remains an issue. A February 2012 analysis by Lee Wilson who publishes the
Education Business Blog compared the theoretical cost of print textbooks versus Apple’s
(AAPL) digital iTexts and found that digital textbooks were roughly 5x more costly on a per-
student basis compared with traditional print textbooks (see Exhibit 15).

Exhibit 15. Textbook vs. iText Cost Per Student
$80
$71.55
70
60 Training
50 Network
40 Device
30
Management
Content
20 $14.26
10
0
Textbook iText
Source: Education Business Blog and BMO Capital Markets.
K-12 basal Another way of segmenting the K-12 publishing sector is by end-product, i.e., between Basal
publishing: 1.5% (core curriculum) and supplementary products. VSS estimates the K-12 basal publishing
CAGR through segment (which we believe remains mostly print-based) will generate roughly an estimated
2017 $4.9 billion in 2012, and we project that this spending will reach over $5.2 billion in 2017,
growing at a 1.5% CAGR over that time (see Exhibit 16).
Exhibit 16. K-12 Basal Publishing Market (2004-2017E)

$6.0 Basal Revenues ($ bil.) % y/y change 20%
15%
Revenues (Billions)
5.5
10%
% y/y change
5%
5.0
0%
-5%
4.5
-10%
4.0 -15%
2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E
Note: Shaded area represents recessionary period. Source: Veronis Suhler Stevenson Communications
Industry Forecast (September 2012) and BMO Capital Markets.
K-12 Supplemental publishing consists of instructional workbooks, study aids, digital video
supplemental products, e-learning, online and other computer-based systems that augment traditional in-
publishing: 1.2% school learning. VSS estimates that the K-12 supplemental publishing segment will generate
CAGR through roughly an estimated $1.6 billion in 2012, growing 1% from 2011 levels. Using VSS
2017 estimates, we project that this spending will reach roughly $1.7 billion in 2017, growing at a
1.2% CAGR over that time (see Exhibit 17).

Exhibit 17. K-12 Supplemental Publishing Market (2004-2017E)

$2.0 Supplemental Revenues ($ bil.) % y/y change 10%
1.8 5%
Revenues (Billions)
% y/y change
1.6 0%
1.4 -5%
1.2 -10%
1.0 -15%
2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E
Note: Shaded area represents recessionary period. Source: Veronis Suhler Stevenson Communications
Industry Forecast (August 2011) and BMO Capital Markets.
While the supplemental publishing market is still dominated by the big three publishers, we
believe competition from digital providers such as Plato Learning, Renaissance Learning, and
Scholastic (SCHL) is increasing. Smaller companies with established footholds include
Achieve3000, Archipelago Learning (acquired by Plato Learning in March 2012), Autoskill,
Cambium Learning (ABCD), Lexia Learning, Scientific Learning (SCIL), School Specialty
(SCHS), Tabula Digital, and Think Through Math. We also believe free or low-cost online
content providers such as Khan Academy are also gaining share in this market.

Technology in the Postsecondary Sector
Postsecondary According to Gartner, an estimated $11.7 billion will be spent in the postsecondary
ed-tech; technology market in 2012. Gartner forecasts a revenue increase of 2.7% CAGR, reaching
estimated 2.7% $13.2 billion in 2016 (see Exhibit 18).
CAGR through
2016 Exhibit 18. US Postsecondary Technology Revenues (2010-2016E)
$14 Software Internal Services Hardware IT Services Telecommunications
Total Spending ($ in bil.) 12
10
2010 2011 2012E 2013E 2014E 2015E 2016E
Source: Gartner estimates.
Software and IT According to Gartner, similar to the K-12 segment, much of the growth over the next few
services to drive years will be driven by software purchases (8.1% CAGR) and IT Services (5.8% CAGR),
much of the offsetting expected declines in telecommunications (down 2% CAGR) and internal services
growth (down 6.8% CAGR).
Eduventures segments the postsecondary technology market into three groups (unfortunately
size estimates by market segment are a bit outdated):
 The infrastructure computing market comprises companies that provide technologies that
support the connection of computer systems, voice, video, data storage, data security, and
data analysis.
 The administrative computing market comprises companies that provide technology that
facilitates the delivery, processing, and analysis of data for institutional administrative
functions.
 The academic computing market comprises companies that provide technologies that
support the learning objectives of an institution. While this is the smallest of the three
types of content markets, it is also the fastest growing.
Postsecondary The two larger technology markets – academic and administrative computing – are served by
academic and traditional hardware and software providers, such as Apple (AAPL), Cisco (CSCO), Dell
administrative (DELL), Hewlett-Packard (HPQ), IBM (IBM), Oracle (ORCL), and SunGard (in January
computing 2012 private equity firm Heller & Friedman combined SunGard’s higher education unit with
its Datatel unit, which is now called Ellucian). In addition, they are supported by larger
consulting and professional service firms such as Accenture (ACN) and IBM (IBM). In
addition to the course management systems providers (to be discussed below), other
technology companies that focus exclusively on the education sector include Campus

Management, EmbanetCompass (acquired by Pearson in October 2012), iParadigms, Jenzabar

and Synergis Education.
Postsecondary Academic Computing Market

For the purposes of this report, we have chosen to drill down a bit further into the academic
computing market, a market somewhat unique to the education sector and expected to be the
fastest growing of the three postsecondary technology markets.
Postsecondary As with the K-12 sector, we believe LMS development is one of the fastest areas of growth in
LMS this segment. These systems provide Web-based platforms and front-end tools (i.e.,
collaborative) to augment traditional instruction, course design services and consulting, digital
course materials (i.e., online bulk-packs, Web-based library), content and research engines,
and ASP hosting. Additionally, we believe the LMS provider-infrastructure is expanding to
incorporate enhanced social media tools and mobile applications, which are gaining in use
across campuses.
We believe this newer and emerging LMS and other online course platform tools are making
significant inroads into traditional non-profit universities in recent years, and note that
EmbanetCompass has established partnerships with many institutions included Arizona State
University and California State University Online.
We believe education LMS will remain fertile territory for M&A and venture capital for
several years as the postsecondary education market is relatively under-penetrated by open-
source Web 2.0 products such as Moodle (an acronym for “Martin's Object-Oriented
Dynamic Learning Environment”) and Sakai (built by four institutions - The University of
Michigan, Indiana University, MIT, and Stanford University).
Blackboard still Whereas Blackboard has held the dominate position in the postsecondary LMS market for
dominant though many years, we believe its market share is eroding as newer competitors enter the market. As
losing share to shown in Exhibit 19, Blackboard has lost significant share in recent years to newer players
others including Desire2Learn and open source systems such as Moodle and Sakai. We note
Blackboard has taken recent steps to shore up its position through the March 2012 acquisition
of Moodlerooms and NetSpot – two leading partners with Moodle.

Exhibit 19. Postsecondary LMS Market Share (2006 and 2011)
100%
13%
90% 20% 3% Other
7%
80%
2% 10%
Sakai
70%
4%
60% 19% Desire2Learn
50%
Moodle
40%
71%
30% Blackboard
51%
20%
10%
0%
2006 2011
Source: Campus Computer Survey 2011 and BMO Capital Markets.
Postsecondary While it was difficult to estimate the size of the LMS market, we believe it represents the bulk
LMS market of the academic computing market and should grow at the high-single digit rate projected for
should grow at all academic computing services.
high single-digit
rate We believe the core drivers of postsecondary LMS market include:
 The ability to augment traditional education with online learning environments.
 Greater acceptance among professors who see online as a teaching aid, and not a teaching
replacement.
 Ease of course material delivery, online communication, grade distribution and scaling
ability to more students.
 Greater analytical capability.
Still, we believe the open-source market remains a difficult one to substantially penetrate and
note that even Google ultimately pulled the plug on its LMS “Wave” platform in the summer
of 2010 owing to slow user adoption (the product was launched in spring 2009). As such, we
believe there are considerable hurdles to successful LMS development, including both
technological, adoption, and patent litigation risk.
MOOCs and Postsecondary Online Enablers

One area of postsecondary education technology getting a lot of buzz recently is the growth of
MOOCs (Massive Open Online Courses). A MOOC is simply an online course delivery
platform (a type of LMS) that enables anybody, anywhere to take a course online and usually
for free. While online courses are nothing new, several factors differentiate MOOCs from
“traditional” online courses including:

 MOOCs are mostly free or very low cost. Anybody can sign up for a MOOC and in most
cases progress through the course at his or her own speed. For-profit schools and other
traditional schools generally charge tuition and have completion deadlines.
 MOOCs allow students to take courses created by leading professors from top schools.
For example, leading MOOCs enable anybody to take courses designed by Stanford and
MIT professors, among others.
 MOOCs utilize crowd-sourcing social technology. MOOC courses may be taken by

hundreds of thousands of students at a time and feel less like structured online courses,
and more like online experiments in social learning, where students can grade each other
and provide answers to each other. As such, the courses themselves are in a constant state
of adapting to user trends.
 MOOCs usually do not provide course credit. While some schools are experimenting
with awarding credit for MOOCs, they generally do not allow students to receive credit
for their work.
Larger and well- A summary of some of the largest and most well known MOOCs to emerge in recent years
known MOOCs can be found in Exhibit 20.
Exhibit 20. Information on Selected MOOCs

Course
Unique Course Courses completion
Company users enrollments offered rate Comments Sample courses
Free courses from 33 University partners including Think Again: How to Reason and Argue:
Coursera 2,090,000 7,000,000 210 9.0% Stanford, the University of Washington and Duke Introduction to Finance
Free courses from MIT, Harvard, Berkeley, the Circuits and Electronics: Foundation of
edX 525,000 462,000 21 4.6% University of Texas, Wellesley and Georgetown Computer Graphics
HTML5 Game Development: Artificial
Udacity 460,000 975,000 19 5%-14% Free courses, with a focus on computer science Intelligence for Robotics
Recruits industry exports to teach and design courses, An Entrepreneur's Checklist, Advanced Excel
Udemy 500,000 800,000 6,000 18.0% which are then published and sold to users for a fee Training
Note: Data as of mid-December 2012. Source: Company websites, Wall St. Journal and BMO Capital Markets.
While MOOCs user-ship has soared into the millions, monetization models are still emerging.
Some companies that are developing pricing models include Udemy, where professors design
their own courses and set the fees themselves; and UniversityNow, which also offers low-cost
courses with some credit opportunities. Other funding models include selling student data to
recruiters (as recently announced by Coursera) and/or charging students to take proctored
exams which may then result in transferable credits.
Traditional Additionally, we have seen more and more traditional schools moving deeper into online
schools moving course delivery, including:
into online
learning  University of Maryland University College (UMUC); roughly 125,000 online students.
 Liberty University, based in Lynchburg, Virginia; 61,000 online students
 University of Massachusetts (UMass Online); roughly 50,000 students
 Arizona’s Rio Salado Community College; 40,000 online students
 Excelsior College; 33,000 students

 Western Governors University; 30,000 students
 Southern New Hampshire University; 11,000 students
 Pennsylvania State University's World Campus; roughly 10,000 students
 Baker College Online; 5,700 fully online students, 53,000 students taking online courses
 California State University plans to begin offering classes in Cal State Online in January
2013.
Postsecondary In response to this demand, a number of companies have emerged in recent years that
online enablers specialize in helping universities transform proprietary curriculum into an online format that
can be marketed and delivered to students. Many of the companies in this space offer a variety
of services beyond just putting curricula online, including IT support and recruiting/marketing
students. Most models work on a revenue-sharing basis, enabling the normally risk-averse
not-for-profit postsecondary community to participate.
The Parthenon Group estimates this market has grown from $105 million in 2003 to $360
million in 2011 – a whopping 17% CAGR. Some key players in this space include:
 Academic Partnerships
 Altius
 Bisk Education
 Deltak (acquired for $220 million by John Wiley & Sons in October 2012)
 EmbanetCompass (acquired by Pearson for $650 million in October 2012)
 2U (formerly 2Tor)
We expect the gradual shift of more colleges moving to online courses and the rise of MOOC
offerings will be a key driver of postsecondary education technology investing for several
years to come.

Technology in the Corporate Training

Sector
Modern e- While early investments in e-learning resulted in rather poor ROI and led to a pull-back in the
learning sector, we believe modern e-learning services have a much stronger value proposition than
providers have did their predecessors. Today’s e-learning providers utilize SaaS-based technologies to lower
stronger value the cost of implementation, improve scaling abilities and provide services that are constantly
proposition updated and accessible anytime anywhere. These technologies also enable access to much
more content and allow users to customize learning modules or develop proprietary learning
tools for specific business purposes. Additionally, we believe e-learning is easier to integrate
with modern HR management platforms, allowing easier performance tracking and data cap-
ture throughout the employee lifecycle.
Corporate training According to IDC, the US corporate e-learning market was expected to generate roughly
e-learning market: $13.5 billion in 2012 revenues, growing at roughly a 13% CAGR from $3.5 billion in 2001,
projected 5.3% although annual growth has slowed each year since peaking at 27% in 2006, recently being in
CAGR through the mid-single digit range. Based on IDC estimates, we forecast growth should continue to
2017 decelerate slightly to roughly a 5.3% CAGR, with revenues growing to $17.4 billion by 2017
(see Exhibit 21).
Exhibit 21. Corporate e-Learning Revenues (2001-2017E)

Corporate e-Learning
$18 30%
y/y % change
15 25%
Spending ($ bln.)
y/y % change
12 20%
9 15%
6 10%
3 5%
0 0%
11
01
02
03
04
05
06
07
08
09
10
E
12
13
14
15
16
17
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Note: Shaded area represents recessionary period. Source: BMO Capital Markets and IDC.
Long-term trend According to ASTD’s 2012 State of the Industry Report, instructor-led classroom based train-
of more ing has been losing ground to technology-based formats, which represented 37% of learning
technology-based hours in 2011, up from 11% in 2001 (see Exhibit 22). While there is some volatility in this
learning hours comparison, we believe the general trend should continue.

Exhibit 22. Average % of Learning Hours by Delivery Channel

(1999-2011)
Instructor-led classroom Technology-based
80%
70%
60%
% of learning hours
50%
40%
30%
20%
10%
0%
2001 2002 2003 2004 2006 2007 2008 2009 2010 2011
Note: Survey data not available for 2005. Source: ASTD’s 2009 State of the Industry Report and BMO
Capital Markets.
In its 2011 annual report, Training Magazine surveyed firms as to which learning technolo-
gies they used. The results of the survey can be found in Exhibit 23. We note the widespread
use of learning management systems (LMS) as these are typically the technological platform
through which eLearning is administered.
Exhibit 23. Learning Technologies Used (2011)
Use Do Not Use Not Sure
Learning Management System 69% 27% 4%
Learning Content Management System (LCMS) 26% 63% 11%
Virtual Classroom/Webcasting/Video Broadcasting 76% 22% 2%
Application Simulation Tool 46% 48% 6%
Rapid E-Learning Tool (PowerPoint) 50% 43% 7%
Online Performance Support/Knowledge Management System 23% 64% 13%
Podcasting 21% 74% 5%
0% 20% 40% 60% 80% 100%
Source: Trainingmag.com and BMO Capital Markets.
Some emerging areas of online learning include the following:
 Virtual Instructor-Led Training (VILT). VILT is generally defined as live or synchronous

training in which instructors deliver courses through web, video, and/or teleconferencing
to remote attendees using technologies such as Cisco’s (CSCO) WebEx and Microsoft
(MSTF) Live Meeting. According to 2012 Novations study, 38% of firms expected to in-

crease VILT usage in 2012 over 2011. VILT courses are commonly blended with self-
study e-learning, instructor-led training, or other print materials, and it is recognized as a
tremendous cost-saver owing to its ability to decrease travel costs and time and increase
user-access.
 Mobility. While most used for informal content, we believe this channel may be especially
popular to organizations whose employees are frequently on the road, and in developing
countries where mobile communication devices are the preferred communication method
owing to lack of infrastructure.
 Social networking. While there are a number of external social networking sites (e.g.,
Facebook [FB], LinkedIn [LNKD], Twitter) that have learning-related networks, a num-
ber of corporations are starting to facilitate internal idea generation and sharing through
their own internal social networking sites.
 Gaming. Gaming is increasingly seen as an effective way to model complex organiza-

tional and market systems in a way that imparts strategic knowledge to employees. Ac-
cording to CLO magazine, simulation-based learning experiences (think air-traffic con-
trollers) can help trainees master new subjects up to 40%-70% faster, and can reduce the
time needed for new employees to reach a level of competent performance by 80%.
 “Self-published content.” According to Bersin, about 70% of all corporate learning takes
place through on-the-job experiences. While blogs and wikis first gained acceptance out-
side the corporate environment, they have become more mainstream in many corpora-
tions, with some elearning services companies offering products to help companies au-
thor their own learning content.
According to IDC, the e-learning market can be segmented into three categories: content, infra-
structure, and services. While we note there is much overlap across these service lines, we have
outlined them below.
Corporate e-Learning Content

Corporate e-learning content companies create, package, and deliver their own content librar-
ies to clients. Typically, the content is delivered in the form of a “course” that covers a variety
of subjects, ranging from information technology to business skills to project management.
This content can be “off the shelf” or customized for/by the end user. The e-learning content
segment is the largest of the three e-learning segments
Content market Corporate e-learning was initially mainly delivered via CD-ROM or videotape, but in the late
has become 1990s, the internet emerged as the primary medium for delivering online training. At that
commoditized time, custom content providers (i.e., meeting specialized needs, such as teaching customers
how to use the nuances of their clients’ products) competed fiercely with off-the-shelf provid-
ers, with the former (e.g., DigitalThink, acquired by Convergys in March 2004) often attract-
e-Learning
ing greater investment attention and capital. When the downturn in corporate spending began
content market
in the early 2000s, custom projects were viewed as more costly and lost share to off-the-shelf
could grow at a content. As efforts to integrate these products with existing networks also proved costly, ven-
7.8% CAGR to
dors changed their product offerings to require little or no customization, essentially com-
$11.4 billion in
moditizing content and driving significant price competition and corporate discounts. We be-
2017
lieve today’s content market remains highly commoditized, but note that modern HR

management software providers sell tools to help companies create and license customized
content.
From 2001 through 2012 (estimated), the e-learning content market increased at a 12.8%
CAGR to $7.8 billion from $2.1 billion, with much of that growth coming from 2006 through
2008, where annual growth rates were in the mid- to high-20% range. Using IDC data, we
forecast that growth will slow a bit from recent levels, but nevertheless be robust, with the
corporate e-learning content market increasing at roughly a 7.8% CAGR to $11.4 billion in
2017 (see Exhibit 24).
Exhibit 24. Corporate e-Learning Content Revenue (2001-2017E)

$12 IT skills Non-IT (business) skills y/y % change 30%
25%
Revenues ($ in bil.)
9 20%
y/y % change
15%
6
10%
3 5%
0%
0 -5%
1
E
E
E
1
0
16
17
12
13
14
15
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
IT training In the late 1990s, investors initially favored IT e-learning content providers over business
demand slowed in skills companies (e.g., the SmartForce versus SkillSoft debate), owing to hyper-growth in IT
early 2000s infrastructure build, the perceived supply drought of skilled workers, and the assumption that
IT training would best migrate to the e-learning environment. However, the downturn in the
early 2000s disrupted this industry owing to reduced demand for IT training; budgetary cuts
in IT departments; off-shoring of IT workers; and costs associated with systems rollouts (of-
ten in the mid- to high-six-figure range). At the same time, we believe business skills learning
demand improved, especially as compliance demands escalated.
eLearning more However, as technology use has grown since then, we believe IT skills training has resumed,
common modality with e-learning becoming the dominant modality choice for IT skills courses. According to a
for IT skills 2012 IDC survey, 40% of firms selected e-learning as the primary modality for IT skills train-
ing compared with only 26% for business skills training. We believe several factors determine
the quality of e-learning providers.
 A large content library. Large content libraries configurable to specific business pur-
poses and specific to various stages of the employee life-cycle.
 Assessment capabilities. Easy performance tracking and analytical capabilities.
 Easy to use interface. An intuitive interface that can be personalized and configured to
various employee levels and business processes.
 Low-ticket items. Can help cash flow (e.g., when SkillSoft was public, its average an-
nual contract was in the low-$100,000 range). By contrast, we believe some of the cus-

tomized content companies, whose offerings were at one time priced in the seven figures,
have seen sales deferred more often.
 SaaS delivery. Cloud-based models are generally lower cost and easier to implement,
update and configure, while allowing for more scaling opportunities and self-paced learn-
ing courses accessible anytime anywhere.
 Strong third-party resellers. In tough times, resellers may provide a solid supplemental
revenue stream and may be particularly helpful in overseas expansion (where products
are typically localized to the target country’s language), where it may not be practical to
maintain a direct sales force. However, in certain cases, we have seen some weakness in
third-party sales as companies concentrate on selling their own products before reselling
those of other providers.
 Conformance to standards. Although there is still more than one “standard” to conform
to (e.g., SCORM), we believe most companies do not wish to be locked into using prod-
ucts that lack the capacity to be interoperable with others.
The e-learning content segment is very fragmented, including a wide variety of companies
from consulting firms to “pure-play” publishers. Exhibit 25 lists Trainingindustry.com’s top
20 training content development companies.
Exhibit 25. Top Training Content Companies (2012)

Company Ticker Headquarters
Accenture CAN New York, NY
Allen Communication Learning Services Private Salt Lake City, UT
Allen Interactions Private Mendota Heights, MN
American Management Association International Private New York, NY
Aptara Private Falls Church, VA
Cegos Private France
Cognitive Arts Private Evanston, IL
Cognizant Technology Solutions CTSH Teaneck, NJ
DuPont Sustainable Solutions Private Virginia Beach, VA
Forum Private Boston, MA
GP Strategies GPX Elkridge, MD
IBM IBM Armonk, NY
Infopro Private Plainsboro, NJ
Intrepid Learning Private Seattle, WA
Pearson Learning Solutions PSO Boston, MA
Raytheon Professional Services RTN Garland, TX
Skillsoft Private Nashua, NH
Tata Interactive Systems Private India
Vangent Private Chicago, IL
Xerox XRX Irving, TX
Note: Listed in alphabetical order. Source: TrainingIndustry.com.
e-Learning Services
This segment refers to the services that assist companies in developing, designing, integrating,
and supporting their training goals and managing the outcomes. This is the second-largest
component in e-learning after content. The e-learning services providers range from global
consulting and technology firms such as Accenture (ACN) and IBM (IBM), to specialized

learning development software companies such as Cornerstone OnDemand (CSOD), Saba

(SABA) and smaller firms such as Bersin & Associates.
The solutions within this segment tend to fall in two categories: business services and techni-
cal services.
 Business services – help firms determine their education needs, how best to accomplish
them and how to develop content suitable to specific learning goals.
 Technical services – helps firms determine what kind of software to purchase to meet
learning goals, how to integrate content from multiple providers, how to ensure function-
ality and whether to outsource these
e-learning According to IDC estimates, the corporate e-learning services segment grew at a 17.4% CAGR
services sector: to $4.2 billion in 2010 from $985 million in 2001. However, much of this growth came in 2003
projected (0.4)% through 2007 when this market was still in its infancy, and revenues actually shrunk roughly
CAGR through 2.5% in 2011 and 1.6% in 2012 (estimated) owing to a decline in technical services. IDC pro-
2017 jects that the rate of decline should get “less worse” in coming years. Based on IDC forecasts,
we project e-learning services revenues will decline roughly (0.4)% annually to about $3.9 bil-
lion in 2017 (see Exhibit 26).
Exhibit 26. Corporate e-Learning Services Revenue (2001-2017E)

$5 e-Learning Services y/y % change 35%
Revenues($in bil.)
30%
4
y/y % change
25%
3 20%
15%
2 10%
5%
1
0%
0 -5%
E
E
10
11
01
02
03
04
05
06
07
08
09
12
13
14
15
16
17
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
e-Learning Infrastructure Solutions

Building an e-learning system from scratch typically requires an e-learning infrastructure and
service that turns information into lesson plans, prepares learning modules, delivers it to the
user, reports on user performance, and evaluates the success of the course. We have excluded
hardware, routers, and other network infrastructure equipment involved in delivering the
modules to the user. This is the smallest of the three components within e-learning, following
content and services.
War for content While e-learning content remains highly commoditized, we believe the infrastructure market
now a war for has evolved considerably as SaaS-based or cloud delivery models take hold. This technology
services allows simple low-cost installation, real-time updates, easy access to existing online content,
mobility and enhanced analytical capabilities. As such, we believe the war for content has
given way to the war for services as companies compete to offer the best learning delivery
platforms that contain multiple features and are easy to integrate with existing HR manage-
ment tools. However, we believe several firms in this space often act as both service and solu-
tion providers.

e-learning According to IDC, the e-learning infrastructure solutions market grew at roughly a 13.1%
infrastructure: CAGR to an estimated $1.64 billion in 2012 from $910 million in 2006. Based on their forecasts
projected 5.1% which shows growth slowing a bit going forward, we estimate spending in this category should
CAGR through increase roughly 5.1% annually (CAGR), reaching roughly $2.1 billion by 2017 (see Exhibit
2017 27).
Exhibit 27. e-Learning Infrastructure Solutions Revenue (2006-

2017E)
$2.5 Management systems Authoring systems 50%
Communication systems Other
y/y % change
2.0 40%
y/y % change
1.5 30%
1.0 20%
0.5 10%
0.0 0%
2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E
The e-learning infrastructure segment can be broken into four sub-segments:

 Management systems,
 Communication systems,
 Authoring systems,
 Other e-learning infrastructure.
LMS integrates e- Management systems (e.g., LMS). This category includes learning management systems
learning content (LMS), which refers to the software that integrates and assembles content from various e-
learning publishers, administers, tracks, and reports on lessons (online or classroom based),
and provides tracking and assessment. Additionally, the LMS provides data about training ac-
tivities and enables companies to correlate training outcomes with performance.
A 2009 study by Bersin (latest available) found that more than 80% of large enterprises have
some LMS in place, while only 36% of small businesses are using an LMS. We expect this
percentage has remained relatively stable since then. We attribute the under-penetration in
small businesses to lower training budgets and fewer employees to train, and expect these
firms may prefer free open source LMS software, such as Moodle and Sakai. However, given
the wide range of learning content in use at large corporations and the larger budget alloca-
tions toward learning development, we believe opportunities remain at this level as well.
Available pricing data shows costs for these systems are widely varied, but are generally
priced for volume and contract length. Exhibit 28 contains average price data compiled by
Brandon Hall research in 2009 (latest available) for both locally installed and vendor-hosted
(SaaS) LMS systems.

Exhibit 28. Vendor Hosted (SaaS) and Local LMS Prices (2009)
SaaS 1-year 3-year w/ maintenance
Size/Learners Avg. Price Per Learner Avg. Price Per Lrn/Per yr
500 $31,136 $62.27 $68,977 $45.98
10,000 129,286 12.93 314,444 10.48
25,000 232,898 9.32 568,201 7.58
100,000 570,625 5.71 1,288,053 4.29
Local 1-year 3-year w/ maintenance
Size/Learners Avg. Price Per Learner Avg. Price Per Lrn/Per yr
500 $31,221 $62.44 $48,230 $32.15
10,000 155,599 15.56 260,568 8.69
25,000 286,768 11.47 486,076 6.48
100,000 738,192 7.38 1,204,941 4.02
Source: Brandon Hall Research and BMO Capital Markets.
Management IDC estimates the e-learning management systems market (the bulk being LMS) will generate
systems projected $903 million in revenues in 2012, after increasing at a 9.6% CAGR from $520 million in 2006.
to increase at a Based on IDC forecasts, we project management systems revenues will grow roughly 5.1% an-
5.1% CAGR nually to roughly $1.16 billion in 2017 (see Exhibit 29).
through 2017
Exhibit 29. Management Systems Revenue (2006-2017E)
$1.2 Management systems y/y % change 25%
20%
y/y % change
0.8
15%
10%
0.4
5%
0.0 0%
2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E
Most LMS While most companies have incorporated some form of LMS, we believe they remain largely
systems are underutilized. According to Online Learning magazine, “despite the million-dollar price tags
currently associated with purchasing and customizing an LMS, less than 20% of any company's em-
underutilized ployees will actually use the system.” We believe this has fueled demand for LMS that are
more feature-light, require less training, and are easily adaptable to the specific needs of its
user.
Fragmented The LMS market is extremely fragmented, and given the prevalence of free online LMS sys-
Industry – top 6 tems, we have little faith in industry forecasts. In December 2010 (latest data available), Bersin
providers have & Associates estimated there were roughly 125 providers in the market not counting internal
50% market share corporate-developed systems – we believe the real number is much higher than this, and note
that www.trimeritus.com lists almost 400 different providers. In 2009 (latest data available) Ber-
sin estimated the top six providers constitute roughly 50% of the market. There is little data re-
garding the size of various companies in the space, though we note that one of the larger players,
Saba (SABA), generated nearly $117 million in revenues in FY2011 (ended May 31), while
Cornerstone OnDemand (CSOD) generated roughly $73 million in 2011 revenues.
According to www.trimeritus.com, the largest corporate LMS providers are:

 SumTotal (including GeoLearning)

 Saba (SABA)
 Meridian
 Outstart (owned by Kenexa)
 Plateau (owned by Success Factors, which is owned by SAP)
 Learn.com (owned by Taleo, which is owned by Oracle)

While the largest education sector LMSs are:
 Blackboard
 Desire2Learn
 Moodle
 Instructure Canvas
Communication systems (i.e., live or virtual classrooms including VILT). These are appli-
cations enabling audio and video online social collaboration. These products can be a cost-
effective alternative for companies wishing to reach a broader audience and reduce travel
costs while providing a learning platform that can be integrated with an existing LMS. Ac-
cording to IDC estimates, the communications systems sub-segment generated an estimated
$349 million in revenues in 2012 and, based on those estimates and IDC forecast, we forecast
growth of 5.1% annually to $448 million by 2017 (see Exhibit 30).
Communication Exhibit 30. Communication Systems Revenue (2006-2017E)

systems market Communication systems
$0.5 20%
projected 5.1% y/y % change 18%
CAGR through 0.4 16%
y/y % change
14%
2017 0.3 12%
10%
0.2 8%
6%
0.1 4%
2%
0.0 0%
2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E
Most collaboration products provide similar functionality, including application and file shar-
ing, private- and public-chat features, Q&A sessions, whiteboarding, audio, and video. While
this technology has become wide-spread with increasingly less differentiation, we believe
compatibility with existing platforms remains a point of stress for corporations seeking seam-
less enterprise-wide integration.
Recent years have seen a number of larger companies enter the e-learning collaborative sector
via acquisition, including Microsoft’s (MSFT) purchase of Placeware (April 2003; now re-
named as Live Meeting) and its more recent purchase of Skype (May 2011), Saba’s (SABA)
purchase of Centra Live (October 2005), Cisco Systems’ (CSCO) purchase of WebEx (May
2007), AT&T’s (T) purchase of Interwise (November 2007). Although these providers may
modestly differ in the makeup of their products (which typically sell for $5,000-$30,000), we

believe that they all fall under the same umbrella. A survey of top VILT technologies (re-
leased in May 2010 – latest available) found that Cisco’s WebEX was the most widely used –
we expect these results are roughly reflective of the entire web-conferencing industry (see
Exhibit 31).
Most used VILT Exhibit 31. Top VILT Technologies Used (2010)
technologies
Webex (Cisco) 52%
Live Meeting (Microsoft) 41%
GoToWebinar (Citrix) 27%
Connect (Adobe) 23%
Internally developed product 11%
Centra (Saba) 7%
Sametime (IBM Lotus) 5%
iLinc 4%
0% 10% 20% 30% 40% 50% 60%
Source: General Physics Corporation and Training Industry Inc.
Authoring systems. Authoring systems refer to software to help create e-learning content
Authoring
systems market and range from simple tools (e.g., no need to write programming code) to the complex. Ac-
projected 5.1%
cording to IDC estimates, the authoring systems sub-segment may be the fastest growing within
CAGR through
the e-learning infrastructure segment. This segment generated roughly $262 million in revenues
2017 in 2012 and based on IDC estimates, we forecast it will grow roughly 5.1% annually to $336
million by 2017. A number of companies provide e-learning authoring tools, including Adobe’s
Captivate, Articulate’s Presenter, Assima, Oracle’s (formerly Global Knowledge’s) OnDe-
mand, Mzinga’s (formerly KnowledgePlanet) FireFly and Trivantis’ Lectora.
”Other” e-learning infrastructure. This is a catchall of important “add-on” tools, such as the
following:
 Learning content management (LCMS), which enables companies to create and deliver
customized and personalized learning modules. This was formerly a segment of LMS but
has since been broken out. The content development functions associated with LCMS are
more prevalent in the “services” segment of the business (see below).
 Training analytics applications, which analyze and evaluate corporate-training per-
formance. It is a component of the overall workforce performance-management (WPM)
software space.
 Competency management solutions (CMS), which can identify skill gaps in personnel
and intervene through training and simulations. This is similar to the above in that it is a
sub-segment of the workforce performance management.

Valuation and Recent Transactions
While most of the transactions in the ed-tech space are of early stage companies, there have
been a number of recent larger deals involving publicly-held companies. They include:
 October 2012: Pearson (PSO) acquired EmbanetCompass for $650 million.
 October 2012: John Wiley & Sons (JW-B) acquired DeltakEDU for $220 million.
 March 2012: Plato Learning acquired Archipelago Learning for $291 million, a 23%
premium to the stock’s prior closing price and EV/TTM EBITDA multiple of 14.3x.
 August 2011: Renaissance Learning announced plans to be taken private by private

equity firm Permira for $440 million. The price was a 26% premium over the stock’s
prior close and implied an EV/TTM EBITDA multiple of roughly 10.9x EV/TTM
EBITDA.
 August 2011: Apollo Group (APOL) announced the acquisition of Carnegie Learning, a
developer of learning tools for K-12 students, for $96.5 million.
 July 2011: Blackboard was taken private by Providence Equity Partners for $1.64 billion,
a 21% premium to the stock’s close prior to the announcement and a roughly 11.6x
EV/TTM EBITDA multiple.
 November 2010: News Corporation (NWSA) acquired Wireless Generation, a K-12

provider of digital curriculum and student assessment and performance software, for
$360 million.
Recent However, most of the ed-tech transactions in recent years have been of much smaller
transactions have companies. Given many of these companies have limited earnings, most ed-tech transactions
gone out at higher are based on EBITDA multiples or revenue multiples. We have provided a list of recent ed-
than historical tech transactions in Exhibit 31. As shown, these deals have been valued much higher than the
valuations typical multiples seen for publicly-held education companies (e.g., Apollo Group [APOL]),
given these companies are deemed to have greater growth prospects and are valued more as
“tech” names than “ed” names. In addition, we note that many of the transactions that
occurred in 2012 went out at higher multiples than seen in some time and were more
expensive than the mean 3x revenues and 16.2x EBITDA of the ed-tech transactions we have
compiled since 2000.

Exhibit 32. Education Technology Recent Transactions

Annc. Transaction Transaction Value / LTM
Date Target Acquiror Value Revenue EBITDA
Dec-12 Educational Computer Systems, Inc. Heartland Campus Solutions NA NA NA
Dec-12 Edvisors Network, Inc. College Loan Corporation NA NA NA
Nov-12 McGraw-Hill Education, Inc. Apollo Global Management, LLC (NYSE:APO) 2,747.0 1.2x 7.1x
Nov-12 Funutation Tekademy LLC Sibling Group Holdings, Inc. (OTCPK:SIBE) 0.2 NA NA
Nov-12 Acceptional, Inc. Bell Curves LLC NA NA NA
Nov-12 LectureTools Echo360 NA NA NA
Nov-12 Sapling Learning Macmillan New Ventures NA NA NA
Nov-12 Efficient Learning Systems John Wiley & Sons 24.0 3.4x NA
Nov-12 Epsilen, LLC ConnectEdu, Inc. NA NA NA
Oct-12 Varitronics, LLC Private Investor NA NA NA
Oct-12 AIM Education, Inc., Learn360 Facts on File, Inc. NA NA NA
Oct-12 Pan Am Education LLC Pivotal Group, Inc. NA NA NA
Oct-12 EmbanetCompass Pearson 650.0 NA NA
Oct-12 BTG Test Prep, LLC Hobsons Inc. NA NA NA
Oct-12 Avow Systems, Inc. Parchment Inc. NA NA NA
Oct-12 Cology, Inc. First Marblehead Education Loan Services LLC 4.7 NA NA
Oct-12 Deltak Edu John Wiley & Sons Inc 220.0 4.1x NA
Sep-12 Challenge Island LLC Creative Learning Corporation (OTCBB:CLCN) NA NA NA
Sep-12 Learning Tree International Inc. (NasdaqGM:LTRE) Collins Family Foundation; The Adventures in Learning Foundation; D.C.M.A. 47.2 0.2x 6.2x
Sep-12 SimpleTuition ValoreBooks (College Marketplace) NA NA NA
Sep-12 College Marketplace Inc. SimpleTuition, Inc. NA NA NA
Aug-12 Enspark, LLC Thrive Learning, LLC; Enspark Interative, LLC NA NA NA
Aug-12 Quinsam Capital Corp., Online Learning Business Private Investor NA NA NA
Aug-12 VaraLogix, Inc. BMC Software Inc. (NasdaqGS:BMC) NA NA NA
Aug-12 Campus Labs, LLC Higher One Holdings, Inc. (NYSE:ONE) 41.1 5.0x NA
Aug-12 Key Curriculum Press McGraw-Hill Education NA NA NA
Jul-12 Qtech Systems, Inc. delSECUR Corp. (OTCPK:DLSC) NA NA NA
Jul-12 LunchByte Systems, Inc. Heartland Payment Systems, Inc. (NYSE:HPY) 26.0 NA NA
Jul-12 Psychological Software Solutions, Inc. Pearson plc (LSE:PSON) NA NA NA
Jun-12 EduClick eInstruction NA NA NA
Jun-12 OnlineEducation.com LLC QuinStreet, Inc. (NasdaqGS:QNST) NA NA NA
Jun-12 Centrix Information Solutions, LLC Varsity Monitor, LLC NA NA NA
May-12 I Drive Safely, L.L.C. Compass Partners Asset Management LLC 73.1 NA NA
May-12 GlobalEnglish Corporation Pearson plc (LSE:PSON) 90.0 2.1x NA
May-12 Prepmaster Review, Inc. Get Prepped LLC NA NA NA
May-12 Educational Benchmarking, Inc. Macmillan New Ventures NA NA NA
May-12 Certiport Pearson 140.0 NA NA
May-12 Intel-Assess, Inc. Wireless Generation, Inc. NA NA NA
Apr-12 GoGo Lingo Rosetta Stone NA NA NA
Apr-12 Bilingo Club, Inc. Rosetta Stone, Inc. (NYSE:RST) NA NA NA
Apr-12 Sophia Learning Capella University, Inc. NA NA NA
Apr-12 Atomic Learning Boathouse Capital and Renovus Capital Partners 19.0 NA NA
Apr-12 Children's Progress, Inc. Northwest Evaluation Association NA NA NA
Mar-12 Texterity, Inc. Godengo, Inc. NA NA NA
Mar-12 Princeton Review Inc., Higher Education Readiness Division Charlesbank Capital Partners 33.0 0.3x 2.1x
Mar-12 Moodlerooms and NetSpot Blackboard NA NA NA
Mar-12 GL Education Group Investcorp NA NA NA
Mar-12 Nolij Corporation Perceptive Software, Inc. 31.9 NA NA
Mar-12 Archipelago Learning PLATO Learning 324.3 NA NA
Feb-12 Inscape Holdings John Wiley & Sons 85.0 4.3x NA
Feb-12 PrepMe DMG (Naviance) NA NA NA
Feb-12 OutStart Kenexa Corp 83.9 3.5x 13.5x
Feb-12 TeachStreet Inc. AmazonLocal LLC NA NA NA
Jan-12 LikeLive, Inc Educational Testing Service, Inc. NA NA NA
Jan-12 Convio Blackbaud NA NA NA
Jan-12 Advanced Informatics Ascend Learning NA NA NA
Source: BMO Capital Markets

Exhibit 32. Education Technology Recent Transactions (cont.)

Dec-11 Intelliworks Hobsons 13.0 2.6x NA
Dec-11 Affinity Circles, Inc. Mingle LLC NA NA NA
Nov-11 ChinaCast Education Corporation Private Investor NA NA NA
Nov-11 Educational Options PLATO Learning NA NA NA
Oct-11 Inquisitive Minds, Inc. HTC America Inc. 12.9 NA NA
Oct-11 Learning House Weld North NA NA NA
Oct-11 The Learning House, Inc. Weld North LLC NA NA NA
Oct-11 Element K LLC SkillSoft plc 110.0 1.3x NM
Oct-11 Windsor Management Group Tyler Technologies 23.5 2.0x NA
Oct-11 School-Link Technologies, Inc. Heartland Payment Systems, Inc. (NYSE:HPY) 15.6 NA NA
Oct-11 Blackboard Engage Blackboard Inc. NA NA NA
Oct-11 Edline Holdings Blackboard 14.9 NA NA
Sep-11 rSmart (Minority Stake) ASAHI Net 3.6 NA NA
Sep-11 Giant Campus, Inc. E2020, Inc. NA NA NA
Sep-11 Class.com Cambium Learning 4.5 1.0x NA
Sep-11 Connections Education Pearson 400.0 2.1x NA
Sep-11 EdPay, Inc. VIP Tone, Inc. NA NA NA
Sep-11 Rapid Intake Inc Callidus Software Inc. (NasdaqGM:CALD) 2.4 NA NA
Sep-11 EducationDynamics, LLC, Enrollment and Retention Division ConnectEdu, Inc. NA NA NA
Aug-11 Renaissance Learning Permira Advisers 485.1 3.5x 12.0x
Aug-11 Student of Fortune Inc. Chegg, Inc. NA NA NA
Aug-11 SunGard Higher Education Ellucian, Inc. 1,775.0 NA NA
Aug-11 VectorLearning LLR Partners 24.0 NA NA
Jul-11 New Futuro LLC AP Capital Partners, L.L.C. NA NA NA
Jul-11 PrepMe Ascend Learning NA NA NA
Jul-11 PrepMe, LLC, Adaptive Learning Platform & Virtual Classroom Ascend Learning, LLC NA NA NA
Jul-11 Excelligence Learning Sterling Investment Partners NA NA NA
Jul-11 Education2020 Weld North NA NA NA
Jul-11 E2020, Inc. Weld North LLC NA NA NA
Jul-11 Blackboard Inc. Providence Equity Partners LLC 1,851.8 3.7x 22.3x
Jun-11 ProSoft Technologies, Inc. Harris Computer Systems, Inc. NA NA NA
Jun-11 Alloy Interactive, Inc. Archipelago Learning, Inc. 2.8 NA NA
Jun-11 LanSchool Technologies, LLC Stoneware, Inc. NA NA NA
Jun-11 Structuralia Kaplan NA NA NA
Jun-11 TH(i)NQ Ed Edline NA NA NA
Jun-11 Litmos Limited Callidus Software Inc. (NasdaqGM:CALD) 3.2 NA NA
May-11 Kaplan Virtual Education K12, Inc. (NYSE:LRN) 12.6 NA NA
May-11 Sophia Pathways Sophia Learning, LLC NA NA NA
Apr-11 Plateau Systems SuccessFactors 290.0 NA NA
Apr-11 SchoolNet Pearson 230.0 NA NA
Apr-11 TH(i)NQ Ed Blackboard Engage NA NA NA
Apr-11 Captual Technologies Desire2Learn NA NA NA
Apr-11 Yuanbo Education (80% stake) Noah Education Holdings 15.7 3.7x NA
Apr-11 Education Services Group Holdings Benford Capital Partners NA NA NA
Mar-11 Outside The Classroom EverFi NA NA NA
Mar-11 ePals New University 50.0 NA NA
Mar-11 Headsprout Inc DYMO / Mimio NA NA NA
Mar-11 Second Language Testing Berlitz Corporation NA NA NA
Mar-11 Bookette Software Company CTB/McGraw-Hill NA NA NA
Feb-11 Insight Schools Kaplan Virtual Education 9.3 0.3x NA
Feb-11 Smarthinking, Inc. Pearson Education Services Pvt. Ltd. NA NA NA
Feb-11 WordWorld, LLC Standard General Management LLC 4.8 1.4x NA
Jan-11 TutorVista Global (76% stake) Pearson 127.0 NA NA
Jan-11 Presidium Blackboard 53.0 NA NA
Jan-11 Computerized Assessments and Learning, LLC Educational Testing Service, Inc. NA NA NA
Jan-11 Edumedia Software Solutions Corporation Axiologix Education Corporation 1.5 NA NA


Dec-10 GeoLearning SumTotal Systems NA NA NA
Dec-10 GlobalScholar Scantron Corporation 166.6 NA NA
Dec-10 Cramster Chegg Inc NA NA NA
Dec-10 Renzulli Learning CompassLearning NA NA NA
Nov-10 Wireless Generation News Corp 430.0 NA NA
Nov-10 Kinetic Books Company, Inc. Perfection Learning Corporation NA NA NA
Nov-10 American Education Corporation K-12 39.3 1.9x 9.9x
Nov-10 The American Education Corporation K12, Inc. (NYSE:LRN) 35.2 2.0x 10.0x
Oct-10 Datawise Measured Progress NA NA NA
Oct-10 Credu Samsung SDS Co 45.0 NA NA
Oct-10 Compass Knowledge Group EmbanetCompass, LLC NA NA NA
Oct-10 Educational Tools, Inc. Triumph Learning, LLC NA NA NA
Oct-10 X2 Development Corporation Follett Software Company, Inc. NA NA NA
Oct-10 Tegrity McGraw-Hill Education 30.0 NA NA
Sep-10 Nimble Assessment Systems Measured Progress NA NA NA
Sep-10 Journey Education Digital River NA NA NA
Sep-10 Hershey Systems, Inc. Hyland Software, Inc. NA NA NA
Aug-10 Turning Technologies Talisman Capital & Brockway Moran NA NA NA
Aug-10 CourseRank LLC Chegg, Inc. NA NA NA
Aug-10 Portage Interactive, LLC Coughlan Companies, Inc. NA NA NA
Jul-10 Sistema Educacional Brasileiro (Learning Systems Division) Pearson 497.4 1.9x 14.6x
Jul-10 Spectrum K12 School Solutions Scantron Corporation NA NA NA
Jul-10 eLearn Now Learning Management System Execuserve Corp. NA NA NA
Jul-10 SynapticMash, LLC Promethean World Plc (LSE:PRW) 13.0 18.6x NA
Jul-10 Wimba Blackboard 58.6 NA NA
Jun-10 Educationcity Archipelago Learning 87.0 10.1x 14.0x
May-10 KC Distance Learning K-12 63.1 1.7x 25.4x
May-10 Redcomet.Org Inc. Jupiter Education Services, LLC NA NA NA
Apr-10 DreamBox Learning, Inc. Charter Fund, Inc., Endowment Arm NA NA NA
Mar-10 Plato Learning Thoma Bravo 109.1 1.7x 7.0x
Mar-10 Edmentum Thoma Bravo, LLC 142.2 1.8x 35.6x
Mar-10 Saf-T-Net, Inc. Blackboard Inc. 38.0 3.9x NA
Feb-10 SkillSoft Berkshire Partners, Advent International & Bain Capital 1,206.2 3.8x 9.8x
Feb-10 Edmodo, Inc. The Fusion Project NA NA NA
Feb-10 CompassLearning Marlin Equity Partners, LLC 54.7 NA NA
Jan-10 viaLearning viaLanguage, Inc. NA NA NA

Nov-09 ExamSoft Worldwide Gemini, Phoenix Strategy, Teakwood Capital NA NA NA
Nov-09 SchoolWorld Software Inc. Blackboard Engage NA NA NA
Nov-09 Datatel Hellman & Friedman & JMI 570.0 NA NA
Oct-09 LearnCentral Elluminate, Inc. NA NA NA
Sep-09 Efficient College Applications, LLC ConnectEdu, Inc. NA NA NA
Aug-09 School Specialty Publishing, Inc. Carson-Dellosa Publishing, LLC NA NA NA
Jul-09 Terriblyclever Design Blackboard Inc. 4.0 NA NA
Jun-09 Voyager Learning Company Cambium Learning Group, Inc. (NasdaqGM:ABCD) NA NA NA
May-09 Examville.com, LLC Rediff.com India Limited (NasdaqGM:REDF) NA NA NA
May-09 Netmedia Education Its Learning NA NA NA
May-09 ANGEL Learning, Inc. Blackboard Inc. 95.0 NA NA
May-09 Techniques.org Regis Learning Solutions NA NA NA
Apr-09 Intellipro, Inc. Pearson plc (LSE:PSON) NA NA NA
Apr-09 National Transcript Center, Inc. Edustructures LLC NA NA NA
Mar-09 PulseMark Tyler Technologies NA NA NA
Mar-09 Edgenuity, Inc. Teachscape, Inc. NA NA NA
Mar-09 Generation21 Learning Systems Inmedius NA NA NA
Mar-09 Performance Pathways, Inc. Capita Secure Information Solutions Holdings Limited NA NA NA
Feb-09 Orchard Learning Educational Options, Inc. NA NA NA
Dec-08 Campusware SchoolNet NA NA NA
Dec-08 Princeton Review Inc., K-12 Division CORE Education & Consulting Solutions Inc. 9.5 0.3x NA
Dec-08 Fronter Pearson 23.8 NA NA
Nov-08 Connected Learning PEQ Consulting 1.6 NA NA
Sep-08 K12 Technologies BasicFear, LLC NA NA NA
Sep-08 Urban Planet Media & Entertainment Corp. United Max International, LLC NA NA NA
Sep-08 Hunter Systems Software Technology NA NA NA
Sep-08 School Information Systems, Inc. Tyler Technologies, Inc. (NYSE:TYL) 11.0 2.2x NA
Aug-08 Harris Connect The Wicks Group of Companies NA NA NA
Aug-08 Ex Libris Leeds Equity NA NA NA
Jul-08 Eedo Knowledgeware Corporation OutStart, Inc. NA NA NA
Jul-08 myFootpath LLC, Prep HeadQuarters ConnectEdu, Inc. NA NA NA
Jun-08 Provost Systems, Inc. EdisonLearning, Inc. NA NA NA
Jun-08 Top Colleges LLC PulsePoint, Inc. NA NA NA
Jun-08 Flypaper Studio, Inc., e-Learning Services Business The GMarie Group, Inc. NA NA NA
Jun-08 CollegeConfidential.com, Inc. Hobsons Inc. NA NA NA
May-08 The Learning Internet, Inc. Educomp Solutions Limited (BSE:532696) 24.5 NA NA
Apr-08 EduCard, LLC Higher One Holdings, Inc. (NYSE:ONE) NA NA NA
Mar-08 Schoolhouse Software, Inc. Harris Computer Systems, Inc. NA NA NA
Feb-08 Assessment Technologies Institute, LLC Providence Equity Partners LLC NA NA NA
Feb-08 The CBORD Group, Inc. Roper Industries Inc. (NYSE:ROP) 344.0 NA NA
Feb-08 Xythos Software, Inc. Blackboard Inc. 31.0 NA NA
Jan-08 Excelsior Software GlobalScholar NA NA NA
Jan-08 Olympia Computing Company, Inc. Tyler Technologies, Inc. (NYSE:TYL) NA NA NA
Jan-08 Campus Management Leeds Equity NA NA NA

Ed-Tech Company Profiles
While there are hundreds, if not thousands of companies that would be considered “Ed-Tech”
providers, we have used the EdTech Map compiled by NewSchools Venture Fund which we
believe is one of the best we have seen in summarizing the sector.
The company divides the landscape into four major segments:
 Curricula
 Data
 Talent Management
 Instructional Systems
A graphical picture of these segments and their sub-segments can be found in Exhibit 33.
Exhibit 33. EdTech Map Overview
Courses
Digital
Data Data
Warehousing
Textbooks
Curricula
Tutoring Reporting
Games Systems
SIS
Test Prep Intervention/
Core
Specialized/ Online
Core Instruction
Assessment
Systems
Communications Collaboration
HR
Systems Learning
Management
Systems
Observa tion
Social
Instructional
Talent Learning Systems
Management
PD
Systems
Teacher
Tools
Click on any sub-category to explore a section of the map.

MAIN
Source: NewSchools Venture Fund

An overview of some of the companies that compete in each of these sectors can be found in
the Appendices at the end of this report. While they are mostly privately-held, there are some
that are owned by publicly-held companies.

A member of BMO
Appendix. Selected EdTech Company Profiles

Company Ownership Sector Description
2U Bessemer Venture Partners, City Light Capital, Highland Education Technology 2U Inc. partners with preeminent institutions of higher education to deliver rigorous, selective degree
Capital Partners, Novak Biddle Venture Partners, programs online to students globally. 2U is the highest funded education startup in the nation, having
Redpoint Ventures, SVB Capital, The Hillman Company, raised $65 million in venture capital. The company recently scaled up to over 350 employees and has
West River Capital plans to announce two new university partnerships in 2012.
360Ed N/A Games 360Ed provides a learning management system and engaging, interactive, media-rich, game-based full-
course and unit content for use in online education.
A+ (American Education K12, Inc. (NYSE:LRN) Courses A+ provides e-learning courseware. Includes core curriculum, assessments, and curriculum management
Corporation) tools.
Financial Group
AAL Solutions (The Pearson plc (LSE:PSON) Student Information Provide secure, comprehensive and centralized software solutions that improve the way our clients
Administrative Assistants Systems collect, store and retrieve student information, backed by the highest level of on-site technical consulting
Ltd.) and client support available. Software and Service offerings are designed to fully support the No Child Left
Behind Act and data-driven decision-making, enabling states and provinces, districts and schools to
spend more time educating and less time on administration.
Academic Partnerships Insight Venture Partners Online School Operators Academic Partnerships (AP) assists public universities in converting their traditional into an online format,
recruits highly–qualified students into these programs, and supports enrolled students throughout their
learning processes.
Accelerated Reader & Renaissance Learning (Permira Funds) Assessment Systems AR & AM software helps teacher individualize assignments for each student based on their strengths and
Accelerated Math weaknesses.
Achieve3000, Inc. GHO Ventures, LLC, Insight Venture Partners, NJTC Core / Supplemental Achieve3000, Inc. provides Web-based individualized learning solutions for grade K-12 students. It offers
Venture Fund, NJTC Venture Fund, L.P., Palisade Curriculum KidBiz3000, a Web-based, individualized reading and writing instruction solution for grades 2-5; and
Partnership II, L.P., Palisade Capital Management LLC, TeenBiz3000, a Web-based, individualized reading and writing instruction solution for grades 6-12. The
Investment Arm company also provides Email3000, an email system for grades 2-12; and Spark3000, a Web-based,
individualized reading and writing instruction solution for adults. Achieve3000, Inc. was founded in 2000
and is based in Lakewood, New Jersey.
Achievement Monitor Clipper Partners, LLC, Thomas H. Lee Partners, Core / Supplemental Achievement Technologies, Inc., an educational software publisher, provides K-adult learning solutions to
Technologies, Inc. L.P., Weston Presidio Curriculum educators and administrators. It offers educational, remediation, skill building, and professional services to
K-12 school market, and school to work and adult basic skills market. The company provides various
Internet products, including SkillsTutor, which offers research-based instruction and tutoring in basic skills
43
for grades K–adult; Employability Skills Online for job seeking skills, career decision making, and work
maturity and effectiveness skills; and SkillsTutor Math Fact Fluency, which helps students to memorize
basic facts in addition, subtraction, multiplication, and division. It also provides CD-ROM products, such
as SkillsBank, a skills enrichment solution for grade 6-adult; CornerStone, a management system that
helps teachers diagnose skills, create individual learning plans, and generate progress reports, as well as
includes research-based content, interactive lessons, reviews, tutorials, and practice tests; and K-2
Learning MileStones for improving reading and math skills with a fun and interactive e-workbook program.
Activ Progress Promethean World (PRW.L) Assessment Systems ActivProgress is an instructional improvement system that links formative assessment to instructional
recommendations. Allows teacher to collaboratively develop a lesson, analyze student mastery, and
publish individualized results to the student and parent.
Acuity The McGraw-Hill Companies, Inc. (NYSE:MHP) Assessment Systems Acuity supports interim and formative assessment programs by integrating assessments, instructional
resources, reporting, and customization opportunities.
AdaptedMind N/A Intervention Core AdaptedMind offers customized, online math practice to students by focusing on areas of improvement.
Adaptive Curriculum Sebit Inc. Intervention Core Adaptive Curriculum offers a catalog of interactive, web-based activity objects to help build students
conceptual understanding in math and science.
Admissions Lab LLC Cutstone Ventures Online Learning Admissions Lab LLC provides higher education on-demand programs for colleges and universities in the
United States. The company offers Enrollment Manager, a Web-based higher education admissions
management service. Its solutions include Virtual Enrollment Coordinator, a program that provides
enrollment operations managers at users’ disposal; Enrollment Manager Tools, which allow users to
capture, manage, and report student interactions on multiple channels in the admissions process;
Enrollment Manager Campaigns, which help users guide prospective students through small decisions, as
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well as grow their inquiry pool, increase applications, and enhance yield; and Enrollment Manager
Analytics, which help users measure and evaluate student pipeline health, anticipate key enrollment
January 2013
Advanced Academics DeVry, Inc. (NYSE:DV) Online Instruction Advanced Academics provides customizable, online courses through a web-based platform.
Aeries N/A SIS Aeries Student Information System is a comprehensive solution that incorporates multiple technologies to
meet the diverse and ever-changing needs of schools, districts, and education agencies.
Source: CapitalIQ and BMO Capital Markets
A member of BMO
Appendix. Selected EdTech Company Profiles (cont.)

Agile Mind N/A Intervention Core Agile Mind combines interactive resources and tools for students with instructional and assessment
resources and professional development for teachers. Programs are designed to increase student
engagement, academically prepare students for college and ultimately enhance equity and high
Agilix Labs Ash Capital, Intel Capital Formative assessment and individualized learning solutions
Airy Labs Foundation Capital, Google Ventures, Harbor Pacific Games Airy Labs is developing social learning games for mobile, tablet, browser, and MMO (massively multi-
Capital LLC player) online games designed in the spirit of learning through play and learning by doing.
ALEKS Intervention Core ALEKS is a research-based online math program that uses adaptive assessments to identify what a
Financial Group
student knows and then delivers targeted instruction. Periodic assessments ensure that students retain
knowledge.
Alexander Street Press N/A Educational Publishing Alexander Street Press, LLC operates as an electronic publisher. It offers an online collection of
humanities, social sciences, performing arts, and music subjects. The company’s products also cover
anthropology, black history and literature, counseling and therapy, education, theatre and film, religion,
social and cultural history, sociology, and women's history and literature. It offers its online collections to
libraries and educational institutions in the United States and internationally. The company was founded in
2000 and is based in Alexandria, Virginia.
A-List Education N/A Test Prep A-List Education aims to help students achieve their academic goals by providing data-driven tutoring and
standardized test preparation and tools to help students with the college application process.
Alt12 Apps, LLC Felicis Ventures LLC, InterWest Partners Education Technology Alt12 Apps, a publisher of social health apps, launched (in April 2012) Kidfolio, a social network and digital
scrapbook for parents. Alt12 Apps also closed its seed round of funding of $1.26M, led by Felicis
Ventures, with participation from InterWest Partners and other individual angels, including HealthTap
founder Ron Gutman.Kidfolio is now available for iPhone and will be launching soon on Android and the
Web.
Altius Education Charles River, Maveron, Noah Fund, Spark Capital Provides online associate degree programs. Its programs provide access to mentoring and support, as
well as transferability to four-year colleges and universities
Ambow Education Co. AMBO (NYSE) LMS Ambow Education Co., Ltd. provides e-learning technologies and education services in China. It offers a
Ltd. learning engine that personalizes the way in which a student absorbs information; and a learning tracking
system that records the student's progress and achievements. The company also provides software and
44
technology solutions, which include i³-builder application architecture for the deployment of Internet-based
cross-platform applications; e-learning platform that provides online education and training solutions; and
Learning Management System, a school administration management system for education providers to
support online teaching and learning environment for distance learning. In addition, it offers School-Online
Platform for schools to create online schools for interactive instruction, electronic whiteboard, file sharing,
and teacher/student interaction; and an online training platform for companies to conduct online training
American Education Corp. K12, Inc. (NYSE:LRN) Core / Supplemental The American Education Corporation (AEC) engages in the development and marketing of educational
Curriculum software for elementary, middle, and secondary schools; adult literacy centers; and vocational, junior, and
community colleges primarily in the United States and the United Kingdom. It develops instructional
content, computer adaptive assessment testing software, and software management technology designed
to manage the delivery of and record the results of student progress in schools and other institutions. The
company’s products primarily include the A+nyWhere Learning System, which provides a research-based,
integrated curriculum offering of software for grade levels 1-12 for reading, mathematics, language arts,
science, writing, history, government, economics, and geography. AEC also markets ‘A+ University’, a
product training and staff development product line to instruct school administrators, curriculum
specialists, and teachers in the use of the company's products.
American Public APEI (NasdaqGS) Online Post-Secondary American Public Education, Inc. is a provider of online post-secondary education focused primarily on
Education School Operators serving the military and public service communities. The company’s American Public University System
(APUS) comprises two universities, American Military University (AMU) and American Public University
(APU). APUS is regionally accredited and serves approximately 33,000 part-time students who live and
work in all 50 states and approximately 100 countries. APUS offers 73 degree programs and 48 certificate
programs in fields ranging from homeland security, military studies, intelligence, and criminal justice to
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technology, business administration, public health, and liberal arts.
Angel Blackboard (Providence Equity Partners) LMS Angel is a learning management system that integrates content, assessments and gradebook.
Incorporated into Blackboard but available separately through October 2014.
January 2013
Apangea Learning New Markets Venture Partners, Saturn Partners Online math supplemental tutoring solution for middle and high school students
Apex Learning Commons Capital Management LLC, EdisonLearning, Courses Apex Learning provides online courseware for use by students in original credit courses, credit recovery,
Inc., MK Capital, Warburg Pincus LLC remediation and exam preparation.
A member of BMO

Apollo Group APOL (NasdaqGS) Online Post-Secondary Apollo Group, Inc., through its subsidiaries, provides various educational programs and services at high
School Operators school, college, and graduate levels. Its subsidiaries include The University of Phoenix, Inc. (University of
Phoenix), Institute for Professional Development (IPD), The College for Financial Planning Institutes
Corporation (CFP), Western International University, Inc. (Western International University), Insight
Schools, Inc. (Insight Schools), Apollo Global, Inc. (Apollo Global), and Meritus University (Meritus).
University of Phoenix offers associate’s, bachelor’s, master’s, and doctoral degree programs in arts and
sciences, business and management, criminal justice, education, human services, health care,
technology, and communication at campuses and learning centers in 39 states and the District of
Columbia, Puerto Rico, Canada, Mexico, and the Netherlands, as well as through online educational
Financial Group
Applied Business SunGard SCT Inc. (Merged Entity) HR, Finance & In January 2002, SCT (Nasdaq: SCTC) acquired Applied Business Technologies, Inc. Applied Business
Technologies, Inc. Procurement Technologies, Inc. is a computer consulting business that provides integrated administrative solutions for
educational institutions. The firm’s PowerCAMPUS™, a state-of-the art client/server system, assists in the
admissions, registration, student records, business, and advancement offices. Applied Business
Technologies, Inc. was established in 1976 and is based in Newtown Square, Pennsylvania.
Archipelago Edmentum (fka PLATO Learning, Inc.) Educational Publishing Archipelago Learning, Inc., together with its subsidiaries, operates as a subscription-based online
education company in the United States and Canada. The company provides standards-based instruction,
practice, assessments, and productivity tools to educators and students through Web-based platforms. Its
principal product line, Study Island, helps students in Kindergarten through 12th grade, or K-12, master
grade level academic standards. The Study Island product line combines rigorous content that is
customized to specific standards in reading, math, science, and social studies with interactive features
and games that engage students, and reinforce and reward learning achievement. Archipelago Learning
also offers Northstar Learning product line that provides online postsecondary programs. Its customers
include public and private schools, teachers, school principals, curriculum directors, superintendents, chief
technology officers, and other administrators.
Assess 2 Know Houghton Mifflin Assessment Systems Provides educators with a tool to assess student progress toward instructional objectives, allowing for
targeted intervention and remediation
Assessment Technologies Providence Equity Partners Training Assessment Technologies Institute, L.L.C. provides various assessment and remediation tools for the
nursing students to prepare for the NCLEX. The company offers academic skills online practice
assessment and study material; alternate item questions; and review modules and DVD’s. It also provides
educational products and services in the areas of medical/surgical, maternal newborn/women's health,
45
gerontology, mental health, community health, and patient safety. Assessment Technologies Institute,
L.L.C. was incorporated in 2001 and is based in Stilwell, Kansas.
Atomic Learning Boathouse Capital, Renovus Capital Partners Education Technology Atomic Learning, Inc. provides online software instruction and professional development solutions on
subscription basis for schools, colleges, and universities in the United States and internationally. It offers
skills training, skills teacher assessment, technology integration resources, curriculum supplements,
student technology literacy assessment, technology, support, and assistive technology training resources.
ATutor N/A Course Management ATutor is an Open Source Web-based Learning Content Management System (LCMS). Administrators
System can install or update ATutor in minutes, develop custom themes to give ATutor a new look, and easily
extend its functionality with feature modules. Educators can quickly assemble, package, and redistribute
Web-based instructional content, easily import prepackaged content, and conduct their courses online.
AutoSkill International Inc. Educators Publishing Service, Inc. Supplementary Content AutoSkill International Inc. designs, develops, and delivers software-based reading and math intervention
solutions to educational institutions in North America and Europe. The company’s products include
Academy of READING software program, an intervention software solution for pupils to develop their
reading skills; and Academy of MATH, a software program that provides instructional approach to maths
education. Its products also include Advantage School, a professional development program that offers
instructional support, staff development services, and motivational strategies for schools; and Advantage
District, which provides a suite of support and staff development services to districts. In addition, the
company offers implementation and deployment planning, professional development, management and
reporting, hosting, and data integration services. It serves district administrators, principals, teachers, and
K-12 schools and students in Canada, the United States, and the United Kingdom. The company was
Avant Assessment N/A Assessment Avant designs and delivers personalized systems of education that engage and motivate each student,
regardless of circumstance, to become a global citizen. Avant Assessment is known for innovative
assessment solutions that empower informed decisions for improved teaching and learning. Specialties
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include assessment/testing in language, K-12, higher-Ed, online.
Aventa Learning KC Distance Learning, Inc. (K12, Inc. (NYSE:LRN)) Courses Aventa Learning, Inc. provides online learning content and services for K-12 institutions. It offers online
January 2013
high school courses and curriculum, exam reviews, advanced placement courses, classroom resources,
and educational technology for schools. The company specializes in the distribution of technology based
K-12 online courses, independent study courses, and credit recovery and test preparation supplements for
students. Its learning services include custom content development and training.
A member of BMO

BenchPrep, Inc. Lightbank LLC, New Enterprise Associates, Revolution BenchPrep, Inc. develops an education application for test preparation experience by providing test
Ventures preparation content on the Web, iPhone, Android, and iPad.
beRecruited Madison Parker Capital Scholarship Search beRecruited.com, LLC provides online college recruiting services and athletic scholarships in the United
States. It offers a platform that allows student athletes to connect and interact with college coaches; and
gives students the tools to research and build profiles of verified athletic and academic information, as
well as provides coaches with a searchable database of potential recruits. The company also operates as
a advertising channel for outside companies to market and promote their products/services. beRecruited
serves athletes and coaches from various sports, including baseball, basketball, cross country, diving,
Financial Group
field hockey, football, golf, ice hockey, lacrosse, rowing, soccer, softball, swimming, tennis, track and field,
volleyball, water polo, and wrestling.
BetterLesson General Catalyst, Highland Capital Partners, New Teacher Tools BetterLesson helps educators connect, create, organize, and share effective curricula and practices from
Markets Venture Partners, NewSchools Venture Fund high performing teachers.
Big Universe N/A Intervention Core Big Universe aims to create and deliver an engaging online reading and writing community for students.
Their platform includes an online book library, and writing and publishing tools.
Bigchalk.com ProQuest, LLC (Merged Entity) Core / Supplemental As of December 30, 2002, Bigchalk.com was acquired by ProQuest, LLC. Bigchalk.com is an educational
Curriculum network that makes use of the internet to promote learning. Its objective is to be the principal education
Testing & assessment destination for teachers, students, and parents. Bigchalk.com provides a broad spectrum of educational
internet services to its users. It offers a National Community Website, a Local Community Website,
Research and Reference Services, Test Preparation and Evaluation and also Professional Development.
The National Community Website serves as the starting point for users, it allows reference, research,
content and curriculum services to be customized and personalized for the specific need of each
bigchalk.com member. It also brings together the technology resources most critical to K–12 education.
Its Local Community Web Site enable educators and parents to create and participate in school Web sites
which act as an online gathering place for local school communities to share information.
Blackboard Providence Equity Partners LMS Blackboard Inc. provides enterprise technology and solutions for the educational industry. It offers
Blackboard Learn, an education technology platform that supports staff and programs to achieve
academic goals; Blackboard Collaborate that provides a learning platform for collaborative, interactive,
46
and mobile learning experiences; Blackboard Connect that provides notification service to cities,
campuses, and schools; and Blackboard Transact, which enables students to make purchases on and off
campus by using their ID cards. The company also provides Blackboard Analytics, a platform that
transforms enterprise data into actionable information; Blackboard Mobile that enables learners,
educators, and communities to access various aspects of educational experience on their mobile devices;
and Blackboard Engage that offers learning community management systems. In addition, it offers
platform consulting, managed hosting, student services, training services, online program management,
BloomBoard (FKA LearnCapital Venture Partners Education Technology BloomBoard designs and develops web based professional development tools for educators. It offers
FormativeLearning) observation and evaluation tools for districts; individualized learning plans; and an open marketplace of
workshops and resources focusing on professional development. BloomBoard was formerly known as
FormativeLearning, Inc. The company was founded in 2010 and is based in Palo Alto, California.
Rafter, Inc. Adams Capital Management, Inc., Comerica Bank, Asset Rafter, Inc., an education technology company, provides cloud-based course materials management
Management Arm, Focus Ventures, Lighthouse Capital solutions in the United States. It offers Rafter Course Materials Network, a cloud-based campus platform
Partners, Norwest Venture Partners, Storm Ventures Inc. for students to obtain course materials; educators to research, compare, and adopt them; and college
administrators to manage their educational materials. The company’s Rafter Course Materials Network
suite includes Rafter Network, a cloud-based software service that enables students, educators,
administrators, and campus store managers to improve the affordability, accessibility, and effectiveness of
course materials; Rafter Discover, a network for educators to find, evaluate, compare, and choose course
content; and Rafter Supply IQ, a cloud-based source of real time textbook pricing and inventory data. In
addition, its Rafter Course Materials Network suite includes Rafter Supply Network, a network that
enables schools to acquire, rent, sell, deliver, and liquidate textbooks and digital content.
BMO Capital Markets

Boss Software N/A Educational Software Boss Software offers unique software solutions to higher education institutions. Products include:
BOSSCARS - Campus Automobile Registration System, BOSSCOPS - Centralized Offense Processing
January 2013
System, BOSS Housing, and BOSS Orientation. Boss Consulting Services, Inc. is a woman-owned
business and is certified as a Disadvantaged Business Enterprise by the US Department of
Transportation's Regulation 49 CFR Part 26.
A member of BMO

Boundless Learning Inc. Founder Collective, Venrock, Kepha Partners, Founder Education Technology Boundless Learning provides an online learning platform for university students. Boundless Learning, a
Collective, Nextview Ventures Boston, Massachusetts based education startup, has raised an USD 8m Series A round of funding led by
Venrock with follow on investments from Kepha Partners, Founder Collective and Nextview Ventures, the
company announced on its corporate blog.
BrainNook N/A Intervention Core BrainNook is an online game that helps kids develop math and English skills through a competitive,
educational, online game experience.
Brain Pop N/A Intervention Core BrainPOP creates animated, curriculum-based content that engages students, supports educators, and
bolsters achievement.
Financial Group
Brainfuse Trustforte Tutoring & Test Prep Brainfuse provides online tutoring and writing services. It offers online writing lab and reference,
Services assignment help, and skills building services, as well as an online learning platform for libraries, schools,
and colleges and universities.
BrainHoney Agilix Labs, Inc. (Ash Capital, Intel Capital) LMS BrainHoney is a cloud hosting learning infrastructure designed around state standards.
Brainly Point Nine Capital Poland-based social learning network

Bredex Corp. The McGraw-Hill Companies, Inc. (NYSE:MHP) Assessment Bredex Corp. develops Web-based education evaluation systems focusing on the K-6 market. The
company’s product offers services such as assessment, improvement, and reporting of student
performance based on mathematics skills. The company is based in Nashville, Tennessee.
Bridgepoint University BPI (NYSE) Online School Operators Bridgepoint Education, Inc. provides postsecondary education services. It offers associate’s, bachelor's,
master's, and doctoral programs primarily in the disciplines of business, education, psychology, social
sciences, and health sciences. The company offers its programs at campuses located in Clinton, Iowa,
and Colorado Springs, Colorado, as well as through online. As of December 31, 2009, it provided 1,150
courses and 60 degree programs with 125 specializations and concentrations. The company was founded
in 1918 and is headquartered in San Diego, California.
Brightstorm KTB Ventures Intervention Core Brighstorm provides free homework help, online video lessons, and affordable test prep for students.
Brittancia Digital Learning Encyclopedia Britannica Intervention Core Brittanica Digital Learning offers online books and their SmartMath program offers adaptive, online math
practice for students.
BuzzMath Scolab Inc. Intervention Core BuzzMath is a web-based math program that provides students with online math practice and feedback.
47
Calvert Partners Non-Profit Online Instruction Calvert Partners provides a distance learning program to schools and school districts with the aim of
providing additional options to families.
Cambium Learning ABCD (NasdaqGM) Intervention Core Cambium Learning Group, Inc. provides research-based education solutions for students in the United
Group, Inc. Veronis Suhler Stevenson States. Its Voyager segment provides various reading programs, including a reading intervention system;
a literacy program for students; an intervention program to accelerate reading for struggling readers in
middle and high school; a research-based and data-driven reading curriculum; a reading curriculum for
grades K-3; an interactive Web-based program; a summer reading intervention program; a targeted
reading intervention solution in Spanish; and a multilingual early childhood program. The company’s
Sopris segment offers products focusing on specific skill deficits. Its programs include Step Up to Writing
that addresses students who score at or below the basic skill level in writing; Rewards, a reading
intervention program; DIBELS/IDEL, a literary screening and progress monitoring tool; LETRS, a
professional development program for educators; The Six Minute Solution for grades K-12 students to
enhance reading fluency; and Algebra Ready, which teaches students fundamental mathematics.
Campus Labs Higher One Holdings, Inc. (NYSE:ONE) Identifies at-risk students and provides administrators with insights that may help them in vetting early
alert systems
Campus Management Leeds Equity Partners Campus Management Corporation provides enterprise software products and services to colleges,
Corporation universities, non-profits, healthcare organizations, foundations, and businesses in the United States and
internationally. It offers CampusVue Student, a student information system for integrating departments
and workflows; Talisma CRM, a constituent relationship management solution for higher education;
CampusVue e-Learning Solutions, a Moodle-based e-learning solution for online and blended academic
delivery; and finance, human resources, and payroll management solutions for fund and net asset
accounting, and employee self-service. The company also provides self-service Web portals for students,
BMO Capital Markets

faculty, administrators, advisors, and employers; CampusVue Performance Analytics, a solution to view
operations and performance of multi-campus, distance, and continuing education; and Talisma
Fundraising, a fundraising solution for alumni associations and foundations. In addition, it offers
January 2013
consulting, implementation, integration, training, and support services for its solutions.
A member of BMO

Campus Technology 1105 Media, Inc. Education Technology Campus Technology, a publishing company, provides publications that focus on the use of technology in
the areas of higher education. It publishes a monthly print magazine that contains feature articles, case
studies, product reviews, and profiles of technology use at individual, departmental, and institutional
levels; CampusTechnology.com, an online resource that provides daily news, features, case studies,
expert opinion pieces, and columns and interactive community resources; and weekly, biweekly, and
monthly electronic newsletters.
CampusCruiser N/A Education Technology CampusCruiser’s award winning products are higher education’s only source for an affordable and
scalable “in the cloud” (SaaS) solution suite.
Financial Group
www.campuscruiser.com
CampusEAI Consortium N/A Education Technology CampusEAI Consortium creates myCampus, a Cloud-based SaaS Student Portal, Faculty & Staff Portal,
Alumni Portal, Prospective Student Portal, Parent Portal, Single Sign-On, Web Content Management,
Alerts, ePortfolio, Learning Management and Mobile platform. www.campuseai.org/about
Campusware SchoolNet, Inc. (Pearson plc (LSE:PSON)) Instructional Management Campusware provides Web pages for teachers and Internet progress reports to parents/guardians. It
offers GradeSpeed.NET, a Web-based gradebook software solution for school campuses and districts
that interface with school management software, as well as allows teachers to provide grade information
to parents and administrators; on-site and off-site training services; and Curriculum Management, a
curriculum tool for teachers in Illinois, Tennessee, Oklahoma, New Jersey, Arkansas, and Virginia.
Campusware was founded in 1989 and is based in San Antonio, Texas.
Capella Education Co. CPLA (NasdaqGS) Online Post-Secondary Capella Education Company, through its wholly owned subsidiary, Capella University, provides online post-
School Operators secondary education services in the United States. It offers various doctoral, bachelor’s, and master’s
degree programs in the health and human services, business management and technology, and
education disciplines primarily to working adults. The company also provides various learner support
services, which include academic services, such as new learner orientation, technical support, academic
advising, research services for doctoral degree candidates, writing services, and other online tutoring;
library services with access to collection of online journals, eBooks, and interlibrary loan services; and
career counseling services that comprise individualized phone, e-mail and face-to-face communications,
online newsletters and online seminars.
Capita Children's Services Capita Group plc (LSE:CPI) LMS Capita Children's Services provides management information systems to education and social care in the
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Student Information United Kingdom. It offers a range of software and services to schools, local authorities, and further and
Systems higher education institutions to meet information management and administrative needs. The company’s
products include SIMS, an online learning environment for delivering fun and exciting new ways of
learning anytime and anywhere; One, an integrated information and case management system that helps
local authorities to meet the objectives of every child matters; and UNIT-e, a management information
system that is designed for the further and higher education sectors. It also provides professional support
to cover the areas of planning, management, support of management information systems, full one/SIMS
implementation management, professional support partnership, training and consultancy, technical
services and helpdesk support, project management, reporting creation, Web services, and data
Capital Education N/A Online School Operators Capital Education is a full-service provider of online learning programs. For colleges and universities
seeking to broaden their reach and build or expand their online presence, Capital Education offers a
financially attractive, minimal risk solution for launching, expanding, and/or operating a high-quality online
Captain U N/A CaptainU, LLC owns and operates a web portal that gives information about college sports recruiting
process to high school athletes and their parents. Its features include finding colleges, communicating
directly with the college coaches, and organizing recruiting information into one place.
Carnegie Learning Apollo Group Inc. (NasdaqGS:APOL) Intervention Core Carnegie Learning offers research-bsaed, adaptive math curriculum for students thorugh a combination of
collaborative, interactive, student-centered textbook lessons and online tutoring
CarrotSticks N/A Games Carrotsticks is an online multiplayer game that improves Mathematics skills.
CaseNEX N/A PD Systems CaseNEX offers online PD courses for individuals and districts. Courses are taught using case-studies
and online collaboration.
CAST Non-Profit Specialized Core CAST, founded as the Center for Applied Special Technology, aims to expand learning opportunities for
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all individuals. By applying Universal Design for Learning principles, they are researching and developing
solutions to serve all students.
Cattura Video N/A Education Technology Cattura offers an advanced lecture capture solution with a core focus on open integration with open
January 2013
source and open video platforms, automated media enrichment to enhance playback of your captured
media, and learner engagement tools to promote note taking and student collaboration.
A member of BMO

Cengage Learning Apax Partners LLP, Apollo Global Management, LLC Educational Publishing Cengage Learning, Inc. provides learning solutions for universities, instructors, students, libraries,
(NYSE:APO), OMERS Private Equity, Partners Group government agencies, corporations, and professionals in the United States and internationally. It offers
Private Equity, SL Capital Partners LLP print and digital instructional and reference materials for academic, professional, and library markets. The
company also provides CourseReader, a customized, digital collection of content assets for the
classroom. In addition, it involves in e-research and educational publishing for libraries, schools, and
businesses, as well as offers courses for learners, instructor and trainer development, supplementary
information, certification and test preparation, and online training services. The company’s learning
solutions include books, videos, CD-ROMs, DVDs, online courses, and eproducts and software. Further, it
provides materials for English language teaching and learning; CourseMate, an integrated Web-based
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solution that includes an interactive eTextbook, multimedia resources, flashcards, and quizzes.
Chalk Board, Inc. Atlas Associates, Menlo Ventures Mobile Learning Chalk Board, Inc. develops learning and discovery software solutions. Its products include PowerPad, a
touch-sensitive tablet that runs on home computers; and Leonardo's Library, which provides exploration in
the areas of visual arts, music, mathematics, science, language arts, and social studies. The company
was founded in 1983 and is based in Atlanta, Georgia.
Chancery Pearson plc (LSE:PSON) SIS Chancery SMS is a web-based student information system designed to meet the unique needs of large,
urban K-12 districts
Chegg, Inc Ace Limited, Active Starts, DAG Ventures, LLC, Online Learning Chegg, Inc., a classified directory for students, offers rentals of higher-education textbooks online. The
FLOODGATE, Foundation Capital, Gabriel Venture company operates a Website that provides access to college textbooks, as well as enables to rent and
Partners, Insight Venture Partners, Kleiner, Perkins, sell books. Chegg was formerly known as cheggpost.com. The company was founded in 2003 and is
Caufield & Byers, Lucas Venture Group, Pinnacle based in Santa Clara, California with a warehouse in Louisville, Kentucky.
Ventures, Primera Capital
Children's Progress Northwest Evaluation Association (non-profit) Assessment Systems Children's Progress offers computer-based formative assessments, reporting, and instructional
recommendations.
Civitas Learning, Inc. Austin Ventures, First Round Capital, FLOODGATE Civitas Learning, Inc., a software maker, provides predictive analytics solutions to the higher education
market.
CK-12 Flexbook CK-12 Foundation (Non-Profit) Digital Texts CK-12 Foundation aims to create and deliver high quality instructional materials that serves as core texts
by offering free, customizable, web-based, open content termed "Flexbooks" that can be customized for
individualized needs.
Claco (formerly Class N/A Teacher Tools Claco helps educators organize and prioritize their curricula and communicate with students.
49
Connect)
ClassDojo General Catalyst Partners, Kapor Capital, Learn Capital Teacher Tools ClassDojo enables teachers to manage behavior and increase engagement in the classroom by easily
Venture Partners, Lerer Ventures, Morado Venture awarding and recording points, achievements and rewards for behavior and performance in class in real-
Partners, NewSchools Venture Fund, Investment Arm, time.
SoftTech VC, SV Angel
Class Parrot N/A Teacher Tools ClassParrot allows teacher to communicate with students through text message from a password
protected website. For example, sending homework reminders, remind students of exams.
Class.com Cambium Learning Group, Inc. (NasdaqGM:ABCD) Intervention Core Class.com offers online courses through a learning management system that help teachers individualize
instruction and provide students with additional practice thorugh media-rich courses.
ClassConnect N/A Platform for teachers to build, organize, store and share their lessons/curriculum with one another
ClassesUSA Experian Information Solutions Online School Operators ClassesUSA.com, Inc. operates as an online higher-education portal. The company provides content on
various topics, including online certificate programs, traditional college and university degrees, career
school degrees and programs, education financing, and test preparation, as well as online associate,
bachelor's, master's, and post-graduate degrees. It also publishes Learn, a biannual magazine related to
higher-education tools for adults. In addition, the company offers online programs in the areas of
business, criminal justice and legal, education, healthcare and nursing, information technology, science
and engineering, and Web and graphic design; and campus programs in the areas of business, computer
science and information technology, culinary arts, fashion art and design, healthcare, and nursing.
ClassLink, Inc. Ascend Venture Group, LLC SIS ClassLink, Inc. designs and develops application server and solutions for K-12 school districts. The
company offers student administration and curriculum management, classroom management, and
software and hardware utilization report generation tools. Additionally, it provides an information portal.
The company markets its products under LaunchPad, OnTrack, Inquiry, and ClassSync brand names. Its
clientele include Clyde Consolidated Independent School District, Hudson Falls School District, Wall
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Township School District, Clyde Consolidated Independent School District, and Queensbury School
District. ClassLink, Inc. was formerly known as ClassLink Technologies, LLC. The company was founded
January 2013
in 1998 and is based in Clifton, New Jersey.

A member of BMO

Classroom Connect Houghton Mifflin Harcourt Publishing Company Professional Development Classroom Connect, Inc. provides professional development programs and online instructional materials
Services for K-12 education. It offers Connected Tech, a K-8 Web-based instructional program that teaches
students technology skills within the context of the core curriculum; Connected University, an online
professional development resource, provides educators with courses, learning resources, just-in-time
support, and a nationwide community of peers, to integrate technology and improve student learning in
schools; Connected Newsletter, a practical resource that helps teachers to incorporate technology and the
Internet into their teaching; and Connected Workshops, a single-or multi-day staff development
experiences. The company also provides Classroom Connect offers a customized conference option to
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meet specific professional development needs; and eSchool Online provides multiple media online
professional development and K-12 curriculum courseware to urban school districts.
Classwell Learning Group, BV Group Ventures, LLC Core / Supplemental Classwell Learning Group, Inc. develops interactive educational products. The company provides pre-K to
Inc. Curriculum twelve grade online teaching and learning tools and resources to teachers, grade schools and scholastic
centers. Classwell Learning was founded in 2000 and is based in Boston, Massachusetts.
Codecademy Collaborative Fund, CrunchFund, Founder Collective, Develops an online application that teaches users; how to write a program. The company offers its online
Index Ventures, Kleiner, Perkins, Caufield & Byers, service through its online platform Codecademy. Ryzac, Inc. was incorporated in 2011 and is based in
O'Reilly AlphaTech Ventures, LLC, SV Angel, The New York, New York.
Social+Capital Partnership, Thrive Capital, Union Square
Ventures
Cognitive Concepts, Inc. Houghton Mifflin Harcourt Publishing Company Tutoring Cognitive Concepts, Inc. provides multisensory reading intervention solutions to support at-risk readers.
Its solutions include pre-k to 3rd grade programs, interactive software, guided instruction, student
resources, teacher’s guides, correlations and assessments, customized professional development,
reporting and delivery, and school-to-home connections. The company’s solutions are used to align
strategies in various areas of reading, including phonemic awareness, phonics, vocabulary, fluency, and
comprehension. It serves students, teachers, and schools. The company was founded in 1996 and is
based in Evanston, Illinois. Cognitive Concepts, Inc. operates as a subsidiary of Houghton Mifflin Harcourt
Collaborative Learning HCP & Company Teacher Tools Collaborative Learning Inc. provides productivity software solutions to enable schools for planning,
monitoring, and analyzing instruction and curriculum. The company offers Curriculum Improvement
Studio, an integrated suite of programs that integrates daily and weekly instruction planning into the
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curriculum alignment, improvement, and assessment process. Its solution includes various Web-based
program modules, such as StandardsScore, a system for analyzing student mastery of the enacted
curriculum; Instruction Planner, a system for planning, monitoring, and analyzing instruction; and
Curriculum Mapper, a system for planning, monitoring, and analyzing curriculum. The company also
provides online and onsite professional development services. It serves empower administrators,
Collegebound Network N/A The CollegeBound Network, Inc. operates as an information resource on universities, community
colleges, and career and technical schools. It provides online and offline education services. Its services
include Internet marketing, search marketing, e-marketing, mainstream media, and telemarketing. The
company operates collegesurfing.com, a portal which provides information on institutions;
collegebound.net, a college and university search engine; myglobaleducation.com, a resource for
information about colleges and universities; myeducation.com, an education portal that connects students
with colleges, universities, and career schools; and spabeautyschools.com, a resource for advertising,
marketing, and recruitment solutions which caters to spa, beauty, and wellness schools. It also provides
recruitment lead generation solutions for educational institutions and campuses using websites, robust
content, a dedicated Student Services division, social media platforms, and daily blogs.
CollegeNET W Capital Partners Education Technology CollegeNET, Inc. develops Web-based on-demand technologies and services for colleges, universities,
and nonprofit institutions. It offers technology solutions in the areas of Web admissions, contact
relationship management, and online recommendations; social networking; class and event scheduling,
space analysis, and benchmarking; contribution and relationship management; faculty and course
evaluation; commencement processing; and tuition processing. The company also offers solutions in
event and academic scheduling, decision support, admissions, prospect management, and alumni
development.
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Colloquy Kaplan/WPO Online School Operators Helps university move and expand services online.
Colorado Virtual Academy K12, Inc. (NYSE:LRN) Online K-12 School The Colorado Virtual Academy uses the K¹² curriculum to offer Colorado students in grades K-12 an
January 2013
Operators exceptional learning experience. With individualized learning approaches, the Colorado Virtual Academy
and K¹² provide the tools kids need to succeed—in school and beyond.
A member of BMO

Compass Knowledge N/A School Infrastructure Compass Knowledge Holdings, Inc., through its subsidiaries, Compass Knowledge Group, Inc., Intelicus,
L.C., Juris Alliance.com, Inc., and Compass Direct, LLC., provides educational products to working
professionals, as well as a suite of education solutions and services to universities, colleges, and
corporations. The company offers a fully-integrated suite of learning solutions that combines marketing,
program development, market research, student recruitment, proprietary course content, and accounting
and administrative services. It also provides its clients and customers with fully hosted e-technology
platforms. Services to its clients may include conducting market research; assisting with curriculum
development; developing and executing marketing strategies; marketing and recruiting of students;
establishing operational and administrative infrastructures; training of faculty; developing and
implementing financial, accounting, and academic quality management systems.
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CompassLearning Marlin Equity Partners Courses CompassLearning, Inc. develops research-based curriculum and assessment software solutions for
students. Its solutions include primary and secondary curriculum, assessments, data management,
individual and group reporting, parent involvement, and credit and grade recovery. The company provides
Odyssey, a K-12 education software to engage, educate, and inspire students. It also offers support and
maintenance services, as well as provides professional development services. CompassLearning, Inc.
was formerly known as JLC Learning Corporation and changed its name to CompassLearning, Inc. in May
2000. The company was founded in 1969 and is headquartered in Austin, Texas. CompassLearning, Inc.
is a former subsidiary of RD School & Educational Services.
ConceptuaMATH N/A Intervention Core Conceptua Math, LLC offers mathematics software to help teachers and students to understand fractions.
It offers Conceptua Fractions, an online curriculum that includes units and lessons, formative assessment,
and progress monitoring solutions; and free fractions tools for teachers. The company also provides
implementation services that include technical assistance, curriculum integration, and teacher training;
support for workshops and institutes; and interactive support for essential strategies. Conceptua Math,
LLC was formerly known as Conceptua Calculations, LLC. The company was founded in 2009 and is
based in Petaluma, California.
ConnectEDU Allen & Co, Investment Arm, J. Burke Capital Partners Professional Development ConnectEdu, Inc., a technology company, provides Web-based solutions to navigate education and
Services employment transitions. It offers Connect!, a Web-based solution that provides users with information and
guidance in curriculum, college, and career planning, as well as online tools and resources to navigate
their high school, college, and career life cycles; and Prep HeadQuarters, a set of Internet-based tools to
enhance high school guidance, and make college and career preparation. The company serves students,
parents, guidance counselors, admission officers, transfer advisors, enrollment managers, and
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employers. It has strategic partnerships with National Collegiate Athletic Association; aal Solutions;
Council of North Central Two Year Colleges; Marcia Brenner Associates; Maine State GEAR UP;
Weidenhammer; Skyward; Computer Management Technologies; SchoolsOPEN, L.L.C.; School
Information Systems, Inc.; and Software Technology, Inc. ConnectEdu, Inc. was founded in 2002 and is
based in Boston, Massachusetts with an additional office in Austin, Texas.
Connections Academy Pearson plc (LSE:PSON) Online Instruction Connections Academy offers a virtual education program for students by providing their online courses
and learning management system to schools and school districts to extend their course offerings and by
operating virtual schools.
ConnectYard Jumpstart Social Media ConnectYard, Inc. provides a social media communications platform for higher education. The company
offers ConnectYard, a solution that integrates social networking sites and mobile technologies to connect
students and instructors, and provide academic support for graduation. Its platform also provides an
environment for students to interact, collaborate, and stay up-to-date on University events and services;
and is used by various departments for institutional messaging, notifications, and emergency alerts. The
company markets its solutions through sales representatives. ConnectYard, Inc. was formerly known as
Optimal QA, Inc. The company was founded in 2007 and is based in Wayne, New Jersey.
Cornerstone OnDemand CSOD (NasdaqGS) HR Systems Cornerstone OnDemand, Inc. provides learning and talent management solution delivered as software-as-
a-service. The company offers three integrated cloud-based solutions for learning management,
performance management, and extended enterprise. Its Cornerstone Learning Cloud helps clients deliver
and manage enterprise training and development programs, as well as links employee development to
other parts of the talent management lifecycle, including performance management and succession
planning. The company’s Cornerstone Performance Cloud allows clients to direct and measure
performance at the individual, departmental, and organizational level through competency management,
organizational goal setting, performance appraisal, compensation management, and development
planning. Its Cornerstone Extended Enterprise Cloud helps clients extend learning and talent
management to their customers, vendors, and distributors.
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Course Hero Amidzad Partners, Great Oaks Venture Capital LLC, Course Hero, Inc. operates an online learning platform offering study documents for courses and majors
Maveron LLC, SV Angel at schools. It offers a suite of study resources to supplement college courses and help students learn; and
hosts an online database of study materials with student-uploaded documents with lecture notes, study
January 2013
guides, textbook help, practice problems and exams, and video lectures from universities in the United
States and internationally.
Coursekit N/A Allow teachers and educators to create mini social networks around individual courses and lectures

A member of BMO

Courseload, Inc Collina Ventures LLC, Elevate Ventures, Indiana Education Technology Courseload, Inc. develops and delivers a Web-based universal-access software solution that allows
University System, Investment arm college students to read and electronically mark up various kinds of college course materials. It also
provides access to catalogs of various textbook publishers. The company’s technology comprises digital
tools that enable search, highlighting, annotating, and creating links to online content.
www.courseload.com
Coursera Kleiner, Perkins, Caufield & Byers, New Enterprise Education Technology Coursera Inc. operates an education platform that offers classes from top universities and professors
Associates online for free. In April 2012, it announced the company has secured $16 million in venture capital and
partnerships with five major universities. (NYT)
Cramster Chegg Tutoring Cramster is an online study community that provides homework help and textbook help through a variety
of platforms, including message boards, a study guide database, practice exams, study groups, and
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interactive step-by-step textbook solutions.

Curriculum Associates N/A Intervention Core Curriculum Associates publishes research-based, materials that provide flexible, focused, and targeted
instruction. Their i-ready program provides students with online practice in English/Language Arts and
Curriki Non-profit Teacher Tools Curriki is an online environment dedicated to the development and free distribution of world class
educational materials for grades K-12.
D2SC Public Consulting Group Assessment Systems D2SC is a comprehensive software platform that integrates the curriculum, instruction, assessment, and
reporting needs of schools and districts.
DataDirector Houghton-Mifflin Reporting Systems DataDirector is a web-based data and assessment management system that allows users to view,
dissagregate and analyze student assessment data.
DataWise Measured Progress Assessment Systems DataWise is a student assessment and data management solution that helps educators track and
improve student learning.
Defined Learning N/A Teacher Tools Defined Learning helps teachers connect content to the real world for students.
Desire2Learn New Enterprise Associates, OMERS Ventures LMS Desire2Learn, Inc. offers Web-based platform for the delivery of online teaching and learning. It offers
Desire2Learn Learning Environment, a Web-based suite of teaching and learning tools for course
development, delivery, and management; Desire2Learn ePortfolio, a platform for collecting, organizing,
reflecting, and presenting learning artifacts; and Desire2Learn Learning Repository, which is integrated
standards-based learning repository enabling the storing, tagging, searching, and reusing of learning
objects. The company’s products also include Desire2Learn LiveRoom, a chat, whiteboard/canvas, and
presentation technology designed to provide a real-time learning environment for participants;
Desire2Learn Essentials that offers smaller eLearning programs and institutions the ability to implement
enterprise-scale learning management system; Desire2Learn 2GO, a mobile learning application; and
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Desire2Learn Competencies Solution, a suite of competency tracking and reporting tools. In addition, it
offers delivery services, hosting services, content services, training services, and support services.
Desmos Inc Google Ventures, Elm Street Ventures, Kapor Capital, Education Technology Developer of browser-based and interactive software whiteboard technology. The company has created
Learn Capital Venture Partners an online community that allows teachers to build and share content that works across most hardware
platforms. The company just released a free, browser based calculator that graphs equations as users
write them, is color coded, and allows people to share any graph with a link.
Destination Math/Reading Houghton Mifflin Intervention Core The Destination Math and Reading supplemental programs feature interactive software, online
(Houghton Mifflin) courseware, and administrative tools for teachers to individualize instruction
Destiny Solutions N/A Continuing Education Since 2001, Destiny Solutions has been crafting innovative continuing education software systems
that unite educators and learners to manage the entire lifelong learning cyclem, exclusively to meet the
divergent needs of non-traditional higher education. Our flagship product, Destiny One™, is the only
business solution that offers integrated constituent, enrollment and administrative management on a
single software platform. Crafted with the lifelong learner in mind, Destiny One is the most complete, agile
and trusted business solution. It transforms traditional administrative systems so educators can grow
revenue, enhance student experience and success, and improve operational efficiency.
DimensionU Ascend Venture Group, LLC, Intel Capital , Pearson plc Games DimensionU (formerly known as Tabula Digita) provides multi-player video games for learning
(LSE:PSON) mathematics, literacy, and science skills, and single player games for learning algebra and pre-algebra.
Multi-players games are immersive (students control avatars and complete missions).
Discovery Education Discovery Communications (DISCA) Specialized Core Discovery Education, Inc. provides digital video-based learning resources to schools and homes. The
company also provides Discovery Education streaming Plus, which integrates into any curriculum with
videos segmented into content-specific clipsIn addition, it offers assessment solutions, such as
Kindergarten through High School assessment solutions; Progress Zone, which allows educators to
create, share, and administer custom diagnostic probes using a bank of various assessment items; RTI,
an assessment solution that satisfies AYP and proficiency requirements; and Vanderbilt Assessment for
Leadership in Education, a researched-based evaluation tool that measures the effectiveness of school
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leaders
DreamBox Learning Charter Fund, Inc., Endowment Arm, GSV, Inc. Intervention Core DreamBox Learning offers core instruction in math through their adaptive learning platform, game-like
learning experiences for students and continuous embedded assessments.
January 2013
Duolingo, Inc. Grade-A Investments, New Enterprise Associates, Union Duolingo, Inc. offers a language learning website where students learn a foreign language while
Square Ventures simultaneously translating text.
A member of BMO

e2020 (Education 2020) Weld North Courses e2020 provides core and elective instruction for use in traditional classrooms, blended schools, and online
programs. Their web-based model, teacher-led video delivery, and instructional approach can be core
instruction, help students recover and accrue credits. They have implementations in 39 states and serve
more than 335,000 students.
e2Campus Omnilert Education Technology e2Campus is a service by Omnilert, LLC. Omnilert develops and markets the leading unified mass
notification systems for sending time-sensitive information to large groups of people. With e2Campus, a
single person can communicate important information to thousands of people anywhere, anytime, on any
e-academy InNOVAcorp, Tholons Capital Educational Software e-academy, Inc. provides hosted electronic software delivery solutions and software license compliance in
Canada and internationally. It offers License Management System, a Web-based solution for software
distribution; eLMS Direct that provides institutions with an online WebStore that manages the licensing
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and distribution aspects of academic licensing programs from start-to-finish; eLMS Fusion WebStore that
enables users to distribute software electronically through secure download; and eLMS for MSDNAA
WebStore, which provides a hosted, automated solution for administrative and management aspects
associated with the MSDNAA program from software delivery to user verification to policy enforcement.
www.e-academy.com
eBackpack N/A Education Technology Offers a digital locker that is full featured, easy to use, and E-Rate eligible. eBackpack is an assignment,
storage, and collaboration service.
EBSCO Publishing EBSCO Industries Curriculum and Learning EBSCO Publishing, Inc. offers online databases. The company’s suites provide information on online
magazines and journals, medical researches, nursing resources, point-of-care synthesized evidences,
patient education materials, and social work contents. It markets its product under the EBSCOhost brand
name. The company caters to colleges, universities, government institutions, corporations, K-12 schools,
and public libraries. EBSCO Publishing, Inc. was founded in 1984 and is headquartered in Ipswich,
Massachusetts. The company operates as a subsidiary of EBSCO Industries, Inc.
eChalk Chazen Capital Partners, LLC, Eastward Capital Communications eChalk provides school and district websites, social networking, learning management, and a
Partners, LLC, Edison Venture Fund comprehensive suite of tools.
Echo360, Inc. Anthem Capital Management, LLC; SCP Partners; Court Online Learning Echo360, Inc. provides a platform that automatically captures class lectures and converts them into
Square Ventures, LLC; Beringea Equity; Grab Networks, podcasts, video, and media. Its EchoSystem provides scaling capture through integration, publishing,
Inc. ; SoftBank Capital; Court Square Ventures II, L.P. room control systems, scheduling, and security. The company serves law schools, four year institutions,
business schools, health sciences, international customers, and two year institutions. Echo360, Inc. was
formerly known as Apreso AnyStream. The company was incorporated in 2007 and is based in Dulles,
Virginia. Echo360, Inc. operates as a subsidiary of AnyStream, Inc.
eCollege Pearson plc (LSE:PSON) LMS One of the largest LMS's, Pearson eCollege serves over 9 million students in K-college.
ED MAP, Inc. Adena Ventures, OCA Venture Partners, LLC, SJF HR, Finance & ED MAP, Inc. provides software and support services for online learning, corporate training, and
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Ventures Procurement multicampus colleges. It offers OpenVue, a software suite that manages data to connect and support data
flow to and from administrators, advisors, faculty, students, and publishers. The company’s OpenVue
suite comprises online bookstore, textbook adoption, digital content, academic edition software, financial
aid, and reports and data modules. The company serves students and customers, faculty, executives and
academic officers, administrative staff and advisors, information technology, financial officers, proprietary
and career colleges, k-12 programs, online higher education programs, multi-campus systems, traditional
campuses, professional associations and continuing education, and corporate training clients. ED MAP,
Inc. was founded in 2002 and is headquartered in Nelsonville, Ohio.
EDC Non-profit PD Systems EDC develops, implements, and evaluates professional development programs for teachers and
administrators. The main PD arm of EDC is EdTech Leaders Online which offers graduate level online
professional development, virtual school training programs and a catalog of online workshops.
Edformation, Inc. Pearson plc (LSE:PSON) Online Learning Edformation, Inc. develops standard assessment probes, formative assessment materials, and online
monitoring and reporting software for K-12 and special educational settings. The company’s AIMSweb, a
Web-based achievement monitoring software engine provides performance data and reporting
improvement solutions to parents, teachers, and administrators. Its products include AIMSweb Systems
that offer curriculum-based measurement (CBM) testing materials, as well as Web-based software, data
management, and reporting solutions for schools and universities; and AIMSweb Palm, which allows
users to administer and score CBM assessments on handheld/PDA devices. The company’s products
also include AIMSweb Test of Early Literacy that offers letter naming, letter sound, phoneme
segmentation, and nonsense word fluency measures; AIMSweb Test of Early Numeracy, which provides
oral counting, missing number, number identification, and quantity discrimination solutions; Spanish
reading CBM standard oral reading fluency assessment passages.
Edgenuity, Inc. Teachscape, Inc. Data Analytics Edgenuity, Inc. offers a set of Web-based applications and data analytic tools to K-12 districts for
instructional improvement. The company offers Edgenuity Achievement Suite, an on-demand instructional
improvement system, which integrates curriculum, instruction, and assessment to identify the gaps
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between the teaching process and student learning. The company also provides strategic,
implementation, professional development, and support services. Edgenuity, Inc. was founded in 2003
and is based in Sunnyvale, California. As of March 9, 2009, Edgenuity, Inc. operates as a subsidiary of
January 2013
Teachscape, Inc.
EdisonLearning Liberty Partners Online Instruction EdisonLearning is an education services provider offering both online courses and blended learning
programs in addition to school management services.
A member of BMO

Editure Weld North Holdings LLC PD Systems Editure Limited, an education and training company, along with its subsidiaries, provides teaching and
learning solutions to the K-12 sector. The company designs technology frameworks and integrates
software, as well as develops and delivers professional development programs for teachers. It offers
SINA Network, an Internet management software service; Mysuite, an interoperable software that
enhances and simplifies the implementation, management and school-wide adoption of ICT services;
LearningPoint, which is structured and customized to reflect the needs of a school; and Teaching
Comprehension, a multimedia CD-ROM course, as well as anti-virus and anti-spam, and infrastructure
and managed solutions. The company also provides programs, content, videos, and tools to assist
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schools in providing a framework for teacher professional development.

Edline, LLC / Blackboard Blackboard (Providence Equity Partners) LMS Blackboard Engage was formerly known as Edline, LLC. Blackboard Engage designs and delivers Web-
Engage based communication solutions for K-12 schools, districts, and classrooms in the United States. It offers
Learning Community Management System that combines the features of a Content Management System,
including Web design, editing, permissions, templates, content publishing, and site navigation; and a
Learning Management System, including gradebook, quizzes, homework hand-in, wikis, and discussions.
The company provides district, school, and classroom Website solutions to set up, deploy, and maintain
district, school, and classroom Websites; learning management and classroom solutions for online tests,
quizzes, and forms; notification solutions for email, text, and voice notification for routine announcements
or emergencies; and on-demand facilities and operations management solutions. Its services also include
custom design, integration, Web hosting, and support; and online, regional, and personal on-site training.
EDmin N/A Assessment Systems EdMin is suite of instructional and assessment applications integrated with a data warehouse. They
provide assessments aligned to state and benchmark standards, reporting systems to track student
interventions and teacher PD, teacher-to-teacher collaboration portals, and teacher-to-home portals.
EdModo Benchmark Capital, Greylock Partners, Learn Capital Social Learning Edmodo, Inc. operates a social network for education. Its social network enables teachers and students to
Venture Partners, New Enterprise Associates, Revolution connect, share content, and access homework, grades, and school notices. The company’s network
Ventures, Tenaya Capital, Union Square Ventures, enables teacher-to-teacher resource sharing, global professional development, and networking
Version One ventures opportunities. The company was founded in 2008 and is based in San Mateo, California.
EdNovo Non-profit Teacher Tools Ednovo provides teachers and students with a collaborative way to find and share web resources
including accessing online resources in an organized playlist.
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Edscape Corporation Simon & Schuster, Inc. Professional Development Edscape Corporation creates online instructions for K-12 educators. The company also provides ED Buzz,
a forum that allows teachers to form an online educational community, as well as participate in
discussions on various education issues, politics, and technology. It enables teachers to incorporate
technology in the classroom. The company is based in Sunnyvale, California. Edscape Corporation
operates as a subsidiary of Simon & Schuster, Inc.
EdSpectrum EdSurge inc. Web-based applications to help school districts gather data, deliver accountability reports, and compile
multiple types of data to use in the classroom
EdSurge inc. Allen & Co., NewSchools Venture Fund, NewSchools EdSurge inc. owns and operates a community which provides news and information on innovation in
Venture Fund, Investment Arm, The Washington Post education technology.
Company
Edthena N/A Online observation and feedback through recorded videos and specialized collaboration tools
Educate Citigroup Private Equity LP, Hancock Capital Tutoring & Test Prep Educate, Inc., a pre-K-12 education services company, provides tutoring and other supplemental services
Management, LLC, Sterling Partners Services to students and their families in schools, at learning centers, and over the Internet in North America. It
offers remedial and enrichment instructions; early reading, math, and study skills programs; and
educational services to public and non-public schools.
Education Elements, Inc. Harmony Venture Partners, Imagine K12, NewSchools Education Elements, Inc. develops blended learning solutions that help schools to design the right
Venture Fund, Investment Arm, Rethink Autism, Inc., blended learning solutions for them, and work side by side with leaders and teachers to embed online
Rethink Education content and data into daily instruction.
Education Gateways LP EDmin.com, Inc. Instructional Management Education Gateways LP LLLP provides k-12 solutions that improve student performance, while providing
LLLP a user friendly, secure, and personalized environment. Its suite of products is integrated and delivered to
the education community via the Internet. The company’s EdGate INFORM is a Web-based management
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system, which provides an access allowing teachers and administrators to plan instructions to meet
individual student learning needs, as well as supports critical course management, communications,
professional development, planning, and outreach functions. It also offers online reading assessment and
January 2013
improvement platforms; correlation services; online correlated assessments, lessons, and resources;
online Community Education Gateway, a customized portal; Web-based communication tools; and online
and offline research and collaboration. The company offers products and services to schools, educators,
students, and parents across the United States.
A member of BMO

Educational Resources Smarterville Productions LLC K-12 Service Providers Educational Resources, Inc. provides academic software, hardware, and supplemental learning materials.
It offers curriculum and non-curriculum software for elementary, middle and secondary districts and
schools. The company offers software for arts/creativity, early learning, ESL/languages, general learning
activities, language arts, keyboarding, math, productivity, science social studies, and special needs
departments. It also provides hardware, such as audio/sound, digital cameras/camcorders, furniture,
headphones, interactive whiteboards/presentation tools, printers/supplies, scan converters,
TVS/VCRS/DVD players, computer hardware, supplies and data storage, document cameras, handhelds,
input devices, portable keyboards, projectors, and storage and media equipment.
Educational Testing N/A Curriculum and Learning Educational Testing Service, Inc., a nonprofit institution, provides assessments, research, and related
Services services for advance learning worldwide. Its products include Admitted Class Evaluation Service, which
Financial Group
help colleges evaluate admissions and student placement procedures; and Algebra End-of-Course
Assessment, an online assessment, which is designed for use at the end of the first-year algebra course
and enable teachers to assess student understanding of first-year algebra concepts. The company’s
products also include Advanced Placement Program, a college board-sponsored program, which gives
high school students an opportunity to take college-level courses and exams, as well as earning college
credits and advanced placement into college courses.
Edupoint Educational Enterprise Partners Venture Capital; Sprout Group SIS Edupoint Educational Systems, LLC develops and supports K-12 student administrative software systems
Systems, LLC products. It offers GENESIS, a Web-based student information system; GENESEA, a special education
administration system; and Revelation Technology, a Web-based application development tools for
enterprise data-centric applications. The company also provides project management, implementation,
support, and customer resource center online services. Edupoint Educational Systems, LLC was founded
in 1997 and is based in Laguna Hills, California with an additional location in Mesa, Arizona.
EduSoft The Riverside Publishing Company Assessment Systems Edusoft, Inc. offers a Web-based student assessment platform. The company helps school districts,
teachers, and parents to track student performance in three kinds of tests: state exams, district
benchmarks, and classroom tests. Its products include State Analysis, which takes state-wide exam data
and integrates it with student information system for roster and demographic data; district benchmarks,
which automatically grades district-wide exams using paper answer sheets and scanners; Teacher
Toolkit, which enables the teacher to track student performance per standard; and Curriculum
Management, which connects curriculum, assessment, and instruction through curriculum plans.
Edustructures LLC Pearson plc (LSE:PSON) Instructional Management Edustructures LLC provides schools interoperability framework (SIF) solutions for the education market. It
provides a range of instructional, administrative, and communications tools allowing interoperability
between disparate applications. The company also offers zone integration servers, schools interoperability
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framework agents, solutions for state agencies, and agent development kits. In addition, it provides
services for states and districts, schools interoperability framework training, agent development, and
professional services. Edustructures LLC was founded in 2002 and is headquartered in Sandy, Utah. It
operates as a subsidiary of Pearson plc.
EduTec Resources, Inc. Clayton Capital Partners, Investment Arm Commerce Management EduTec Resources, Inc. provides educational technology solutions and offers voice, video, and data
integration, network design, installation and support, cabling and wireless solutions, electrical upgrades,
technology coordinator services, curriculum design, software, and hardware training. The company’s
services include technology planning, professional development, network design, network installation,
network support, educational research, hardware sales, courseware sales, and training. EduTec
Resources, Inc. was founded in 1996 and is based in St. Louis, Missouri.
EduTest Edmentum (fka PLATO Learning, Inc.) Assessment Systems Edutest is a provider of commercial systems of online testing and assessment for the students in
kindergarten through twelfth grade.
Eduvant N/A Reporting Systems Eduvant provides web-based tools to help school leaders, administrators organize and integrate data they
are already collecting to inform decisions. Featuring analytics and underlying intelligence that displays in
customized dashboards.
EdVISION Corporation Scantron Corporation Testing & assessment EdVISION Corporation provides curriculum development and assessment tools for the education
community in the United States. It offers Assessment Connection, an assessment tool that enables users
to generate tests, answer keys, and home study guides; and StateStandards.com, which enables
educators to find specific learning objectives at each grade level. The company also provides
Home2School.com that enables parents to continue their child’s education at home with tutorials and
reading lists selected by reading level and area of interest. In addition, EdVISION Corporation offers
Curriculum Designer, a database of learning standards and objectives; and PERFORMANCE Series and
Skills Connection that are assessment products. The company offers its products to administrators,
teachers, and parents of students from kindergarten through high school. EdVISION Corporation was
founded in 1990 as Tudor Publishing Company and later changed its name to EdVISION Corporation in
2000. The company is based in San Diego, California.
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Effective Educational Pearson plc (LSE:PSON) Tutoring As per the transaction announced on April 17, 2006, Effective Educational Technologies Inc. was acquired
Technologies Inc. by Pearson Education Inc. Effective Educational Technologies, Inc. develops MyCyberTutor, an
interactive Web-based tutorial program. MyCyberTutor contains multiple parts for students, and utilities for
January 2013
teacher to browse and search the library, prepare assignments, view grades for class, and edit or create
problems. It is available from EET for researchers and/or authors, and as MasteringPhysics for users in
calculus-based introductory physics, as well as MasteringGeneralChemistry. Effective Educational
Technologies was founded in 2001 and is based in Cambridge, Massachusetts.
A member of BMO

eGenio Education N/A LMS eGenio Education Solutions LLC offers online education solutions. Leadership: egenio.com/leadership/
Solutions LLC
eInstruction GE Equity, HarbourVest Partners, LLC, Leeds Equity Assessment Systems eInstruction Corporation designs and develops student response systems. The company offers
Partners CPSPulse, a classroom performance system; Interwrite PRS, a platform that focuses on classroom
interaction and assessment; Interwrite DualBoard, a dual pen-input interactive whiteboard; and
ExamView, a testing and assessment solution. It partners with ANGEL Learning, Blackboard, Inc.,
Cengage Learning, and John Wiley & Sons, Inc. eInstruction Corporation was founded in 1980 and is
headquartered in Denton, Texas with additional offices in Cincinnati, Ohio; Columbia, Maryland;
Scottsdale, Arizona; Toronto, Canada; and Aulnay-sous-Bois, France.
Financial Group
ELEARNINGFORCE N/A Education Technology ELEARNINGFORCE is a software supplier with expertise in products specifically designed for the delivery
of e-learning. Has an office in NYC
Element K NIIT Ltd. (BSE:500304) Training Element K, LLC provides training content and custom learning solutions. It offers e-learning courses,
printed books for the classroom, titles in e-reference library, and a learning platform. The company also
provides learning, performance consulting, content development, technology, and managed learning
services. It provides solutions for information technology, financial services, discrete manufacturing,
process manufacturing, hospitality, and education industries, as well as for membership organizations and
training centers.
Eleven Learning N/A Publishes open-source, community-powered textbooks and eTextbooks
Ellucian, Inc. Hellman & Friedman LLC, JMI Equity Educational Software Datatel, Inc. provides administrative and academic software systems, and professional services to
colleges and universities. Its products include Colleague, an enterprise resource planning system;
ActiveAdmissions, an e-recruitment solution; ActiveAlumni, for engaging, building, and growing
personalized relationships; and ActiveCampus Portal, an enterprise work environment and collaboration
system. It offers services, such as training and education, enterprise resource planning, strategic planning
and project management, Web site design, and professional executive services.
Elluminate Blackboard (Providence Equity Partners) Collaboration Elluminate delivers an integrated suite of web, audio, video, and social networking solutions to support
virtual learning and collaboration. Elluminate tehcnologies are now integrated into and form the core of
Blackboard Collaborate.
EmbanetCompass, LLC Pearson plc (LSE:PSON) (Pending) Online Learning Embanet-Compass Knowledge Group provides solutions for colleges and universities to develop and
support online degree programs in North America. It offers education solutions, such as student
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recruitment, course development/instructional design, course migration, marketing, and student retention
solutions, as well as online faculty training, technical support, and help desk support services. The
company also provides services in the areas of prescreening admissions applications, and elucidating
financial aid options; and identifying, targeting, and reaching qualified prospective students, as well as
offers managed hosting solutions. It serves public and private institutions, including research institutions.
The company was formerly known as Embanet Corporation and changed its name to Embanet-Compass
Knowledge Group on October 25, 2010.
EMPOWER Student ComSpec Educational Software EMPOWER is a fully integrated student information system powered by an Oracle database. Modules
Information System provide flexibility based on institutional needs and include: Recruiting & Admissions, Records &
Registration, Financial Aid, Billing & Receivables, Degree Audit, Alumni & Donor Development, Higher
Education Payroll, Residence Halls, Campus Security and Web Self-Service. Part of ComSpec
International, Inc. is a professional software company specializing in the development and implementation
of applications for higher education and custom data base systems for a range of clients.
English Central Atlas Venture L.P., Bantam Group Inc., Investment Arm, EnglishCentral, Inc. provides online services for users to learn English language. The company offers
Google Ventures, NTT Investment Partners Inc., SKT various learning goals to learn business, travel, social, and media English; videos by goal, topic, or
Ventures difficulty level for users to watch; and study vocabulary videos or topics, as well as word-based playlists for
various usage examples. It also provides solutions for users to record videos in their own voice, compare
their speech to native speakers, and get pronunciation feedback, as well as to correct their pronunciation
challenges with help videos, practice sessions, and progress tracking. It offers its services to improve
English skills of users by turning Web videos into language learning experiences.
English Language Pearson plc (LSE:PSON) Core / Supplemental English Language Learning & Instruction System, Inc. engages in the development, marketing, and
Learning & Instruction Curriculum support of English language training software. It offers ELLIS, a series of approximately 20 interactive,
System, Inc. multimedia software programs that combine text, graphics and video, digitized sound, voice recording,
and translation from English for a virtual learning experience for English students of various levels. Its
BMO Capital Markets

product line consists of ELLIS Academic Suite, which includes Intro, Middle Mastery, Senior Mastery,
Placement, Master Pronunciation, and Instructor Utilities; ELLIS Kids Suite consisting of Essentials, Level
One, and Level Two; ELLIS Business Suite, including Airports and Transportation, Hotels, Restaurants
January 2013
and Hospitality, Office and Social Skills, Business Meetings, Contracts and Negotiations; ELLIS for
Special Purposes, such as British ELLIS, Canadian ELLIS, Corporate ELLIS versions, and ELLIS Native
Language Support; and ELLIS Home Kits. English Language Learning & Instruction System, Inc. was
A member of BMO

Engrade NewSchools Venture Fund, Investment Arm, Rethink Teacher Tools The company provides messaging to message students and parents; Homework Calendar to post
Autism, Inc., Rethink Education, Seavest Capital Partners assignments, events, reminders, and lessons online; and Discussions to engage students in online
discussions. The company also provides Wikis to build online class wikis with students and colleagues;
Flashcards to make studying a breeze with online flashcards for students; Attendance to track daily
attendance; Admin Reports to see student grades and attendance; and online quizzes. It serves teachers
and schools in the United States and internationally.
Enome, Inc. NewSchools Venture Fund, Investment Arm, Rethink Enome, Inc. owns and operates a collaboration platform that helps teams of educators, students, and
Education parents collaborate around personal learning plans.
Financial Group
Enrollment Rx N/A Enrollment Rx, LLC is an innovator of cloud-based higher-education Constituent Relationship
Management (CRM) and Student Information Systems (SIS) solutions. Built entirely on the
Salesforce.com platform, Enrollment Rx combines its expertise in cloud computing with a strong higher-
education background to deliver world-class solutions that offer transformative functionality, infrastructure
and scalability.
ePals Corporation SLN (TSXV) Social Learning ePals, Inc. offers K-12 schools, teachers, students and parents a safe and secure global online
communications and collaboration platform for building educational communities, and providing quality
digital content.
EPGY Online High School Non-Profit Online Instruction The Education Program for Gifted Youth Online High School (EPGY OHS) at Stanford University is an
at Stanford independent school that serves students in grades 7-12 through full-time, part-time and single course
enrollments . EPGY OHS offers both seminar style and directed study courses.
Epigeum Imperial Innovations Group (AIM:IVO) Epigeum Ltd provides online training courses for staffs and students in academic institutions, universities,
research institutions, professional bodies, and teaching hospitals in the United Kingdom, the United
States, Europe, Asia, and Australasia. It offers courses for post graduate and professional researchers,
students’ higher education, lectures and teaching faculties, and leaders and managers in higher
education. The company also provides distribution and re-selling services for universities, companies, and
individuals who have already built courses and want others to use it too.
Epsilen ConnectEdu, Inc. Epsilen, LLC offers eLearning solutions for higher education institutions. It offers Epsilen Environment, an
eLearning platform that allows educators and students to access digital content and integrate it into their
online lessons; Epsilen Enterprise ePortfolio, an institute wide portal with integrated ePortfolios,
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collaboration, learning outcome assessment, and networking solutions. The company also provides
hosting, integration, training, and support services. Epsilen was formerly known as BehNeem, LLC and
changed its name to Epsilen, LLC in May 2009. The company is based in Indianapolis Indiana. Epsilen,
LLC operates as a subsidiary of The New York Times Company.
eScholar Education Growth Partners LLC Data Warehousing Escholar provides data management tools to help educators use data. Their comprehensive data
warehousing and student/staff identification systems integrate, cleanse and manage education related
eSIS Pearson plc (LSE:PSON) SIS eSIS is an enterprise-wide, web-based, education data management solution, providing administrators
and teachers access to real-time information to effectively assess and support student achievement.
eSpark, Inc. 500 Startups, Learn Capital Venture Partners, MK eSpark, Inc. designs, develops, creates, and evolves a Web and iPad-based mobile educational software
Capital, New World Ventures, NewSchools Venture Fund, platform for elementary school students.
Investment Arm
ETS Assessment Training Educational Testing Service, Inc. Assessment ETS Assessment Training Institute provides solutions for teachers to improve student achievement by
Institute integrating student-involved classroom assessment into day-to-day instruction in the United States and
internationally. The company focuses on building students' confidence as learners, as well as supporting
teachers for developing day-to-day classroom assessment. It offers training materials, such as books and
DVDs. The company also provides events and training services, such as professional development in
classroom assessment for student learning, seven strategies of assessment for learning, classroom
assessment for student learning workshop, sound grading conference, and summer conference services.
In addition, it offers video conferencing and on-site professional development services. The company was
founded in 1992 and is based in Portland, Oregon. As of March 8, 2006, ETS Assessment Training
Institute is a subsidiary of Educational Testing Service, Inc.
ETS Pulliam LLC Educational Testing Service, Inc. ETS Pulliam LLC provides educational student data management software, and professional development
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and consulting services to schools and school districts in the United States. The company offers an
instructional data management system that helps teachers in making curriculum decisions and
improvements based on student data culled from standardized tests and interim assessments. It also
January 2013
provides principal and assistant principal training programs, no-child left behind compliant programs to
create educational opportunities for children, and special educational services to meet the challenges of
instructional programs, as well as training programs for administrators, general and special education
teachers paraprofessionals and parents
A member of BMO

ETUDES N/A LMS Etudes leads open source software development of teaching, learning and collaboration tools and offers
centralized hosting, support, site and account management, training and professional development
opportunities to its members. It serves over 90,000 students and supports instruction at 25 instututions.
Everfi Allen & Co., Bezos Expeditions, New Enterprise Specialized Core EverFi offers a web-based education technology platform that teaches, assesses, and certifies students in
Associates, Rethink Education, Tomorrow Ventures critical skills including Financial Literacy, Digital Literacy and Student Loan Management, Digital Literacy.
EverTrue Bantam Group Inc., Investment Arm, Boston Seed Solutions for universities & organizations to better engage alumni through the web, mobile, and social
Capital LLC, New World Ventures, Red Swan Ventures, media including iPhone, Android, etc
LLC, TechStars, LLC
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Excelsior Software, Inc. GlobalScholar, Inc. Assessment Excelsior Software, Inc. provides assessment management solutions. The company offers Pinnacle Suite,
a web-based gradebook that supports school improvement with a solution that implements standards-
based learning by aligning curriculum and assessments with instructional practices for digital-age
educators and learners; and Pinnacle student information system, which provides centralized enrollment,
attendance, health, transportation, and discipline information. It also provides Pinnacle Analytics, a tool
that allows schools and districts to customize and distribute parsed data at various levels; Curriculum, a
roadmap for developing and deepening student understanding; assessment management, a component
that lets students, parents, and educators at various levels see immediate data regarding student
achievement; and supplemental services. In addition, the company offers professional services, such as
on-demand professional development, grants and funding, training, and customer support services. It
serves school district leaders, site administrators, teachers, and parents and students in the US.
ExLibris Golden Gate Capital Core / Supplemental Ex Libris, Ltd. provides library automation solutions for academic, research, and national libraries. It offers
Curriculum DigiTool solution, a digital asset management solution for libraries that focus on managing, maintaining,
and sharing collections, as well as for libraries serving as institutional repositories; and Primo, a solution
for the discovery and delivery of local and remote resources, such as books, journal articles, and digital
objects. The company also provides digital preservation systems; and SFX, which provides users with
context-sensitive links to article full-text and other library-defined resources.
Explore Learning ProQuest, LLC Intervention Core ExploreLearning.com offers the world's largest library of interactive online simulations (Gizmo's) for math
and science education in grades 3-12
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EyePower N/A EyePower Games Private Limited designs and develops teaching and learning tools.
FASST Math Scholastic (SCHL) Intervention Core FASTT Math is a research-based, web-based mathematics intervention program to develop students
mathematical fluency and automaticity.
Fast Forword Reading Scientific Learning (SCIL) Intervention Core The Fast ForWord program is a reading intervention program designed to increase reading proficiency in
Program students, especially thoes that are struggling and reading below grade level.
Fingerprint N/A Mobile learning and games for kids and their parents: iPhone and iPad apps
Flat World Knowledge Bertelsmann Digital Media Investments, Bessemer Flat World Knowledge, Inc. publishes open college textbooks for higher education market. It offers
Venture Partners, High Peaks Venture Partners, Random textbooks in the categories of business and economics, humanities, social sciences, professional and
House, Inc., Tribeca Venture Partners, Valhalla Partners applied sciences, mathematics, and sciences. The company enables users to order online and through
email, as well as access textbooks online; and provides options to purchase print and digital formats,
including e-books, audio books, PDF downloads, and interactive study aids. Flat World Knowledge
provides digital access to textbook and study aids to enrolled students for a license fee. It serves authors,
Florida Virtual School Non-Profit Online Instruction Florida Virtual School (FLVS) provides virtual education solutions to students in Florida and nationally by
providing a high quality technology-based education. As the country's first state-wide internet based public
high school, FLVS offers customized courses and platform to states, districts and schools.
Follett Corporation N/A Curriculum and Learning Follett Corporation provides educational tools and services. The company offers sweatshirts, CDs, and
decaf soy lattes; staples, such as text books and supplies; books, videos, and research materials for
librarians; books, ebooks, and audiovisual materials to K-12 schools; TextLink, an inventory management
system; and a library automation solution. It provides Follett Virtual Bookstores, which allows K-12
BMO Capital Markets

educational institutions with bookstore programs for managing and distributing school course materials.
The company offers its products and services to students ranging from adults taking classes on college
campuses and in cyberspace to grade school children surfing the Internet in their school library. Follett
January 2013
Corporation was formerly known as Wilcox & Follett Company and changed its name in 1957. The
company was founded in 1873 and is based in River Grove, Illinois.
FoxyP2 Inc. Flybridge Capital Partners, Insight Venture Partners, FoxyP2 Inc. operates an online language school in Latin America. It offers Open English, an online
Kaszek Ventures, Pasadena Angels, Redpoint eVentures English language course that combines live instruction with native English speaking teachers and multi-
media learning content. It initially serves Spanish-speaking students around the globe.
A member of BMO

FSCreations, Inc. eInstruction Corporation Testing & assessment FSCreations, Inc. provides content, testing, and assessment solutions for educators, publishers,
corporations, parents, and students. It offers software, multimedia, and print products and services,
including examview assessment suite that creates and administers tests, worksheets, and study guides;
examview learning series, a collection of questions; content conversion services, which convert existing
questions and content into formatted banks; quiz shows that presents questions and tests in a fun and
interactive game show format; and audio response systems for encouraging participation and learning.
The company was founded in 1991 and is based in Cincinnati, Ohio. As of September 18, 2006,
FSCreations, Inc. operates as a subsidiary of eInstruction Corporation.
Financial Group
Fusion Academy American Education Group Fusion Academy operates as an accredited school for students in grades 6-12. It offers courses in
sciences, including anatomy and physiology, astronomy and marine biology, chemistry, physics, and
earth, life, and physical sciences; mathematics, including algebra 1 and 2, calculus, geometry, basic
mathematics, consumer and business mathematics, pre-algebra, statistics, and pre-calculus; and history
and social studies, including economics, government, cultural geography and history, and the United
States and world history. The company also provides courses in visual and performing arts, including jazz
improvisation, music theory, acting, art history, bass guitar, drama, drums, film studies, guitar, jazz
appreciation, music appreciation, photography, screenwriting, studio art, and vocal fundamentals; English,
such as creative writing and poetry; languages, including French, Japanese, and Spanish; and other
Gaggle N/A Collaboration Gaggle has been providing safe online learning tools to the K-12 market since 1998. Gaggle’s collection of
tools has grown to include Digital Lockers, Filtered Shared Documents, Social Walls, Message Boards,
Chat Rooms, Blogs, Profile Pages, Homework Drop Boxes, and Calendars.
Galileo ATI (Assessment Technology Incorporated) Assessment Systems Galileo K-12 is a fully integrated, standards-based instructional improvement system providing
comprehensive assessment and instructional tools. There is also a Pre-K version.
Gamespark TechKnowHow Inc. Games Gamespark offers self-paced online courses teaching computer game design through video-based
lessons, game-building practice tools, and interactive quizzes.
Genius SIS N/A SIS Genius SIS is a web-based student information system designed to make a school operation easier,
faster and more reliable. It manages your admission process, controls enrollments, provides information
to students and guardians.
Georgia Cyber Academy K12, Inc. (NYSE:LRN) Online K-12 School The Georgia Cyber Academy uses the K¹² curriculum to offer Georgia students in grades K-10 an
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Operators exceptional learning experience. With individualized learning approaches, the Georgia Cyber Academy
and K¹² provide the tools kids need to succeed—in school and beyond. The Georgia Cyber Academy is
the fastest-growing schools in Georgia.
Giant Campus Weld North Courses Giant Campus provides facilitated, project based online curriculum for technology, digital arts, business,
and engineering for secondary schools.
Ginger Software, Inc. Darya Venture, Harbor Pacific Capital LLC, Horizons Ginger Software, Inc. provides a solution for automatic spelling and grammar checks.
Ventures Limited, Vaizra Ventures, 0
GlobalScholar Scantron Corporation Tutoring GlobalScholar, Inc. develops products that integrate and align the resources of education, people,
technology, and content. It offers GlobalScholar.com, a platform that enables educators to create,
manage, and align content, assessments, curriculum, standards, and supplemental learning to drive
educational performance; and online tutoring Website where parents and students can connect with
trusted educators who provide one-to-one tutoring, instant homework help, and self-paced learning. The
company also offers CollegeFinder and SchoolFinder, a search Web site, which are being developed to
help students and parents learn about, compare, and make informed decisions about schools to attend.
Goalbook NewSchools Venture Fund, Investment Arm, Rethink Teacher Tools Goalbook allows teachers to keep track of students individual subject goals in one online location.
Education
GoalQuest, Inc. EducationDynamics, LLC GoalQuest, Inc. provides Web-based communications tools to improve recruitment, and enrollment and
retention of education institutions. The company offers UBlog that allows users to create and publish a
personal e-journal to share experiences, thoughts, and opinions; UPeers, which connects students with
common academic and career interests—relationships; UScene, a guide to restaurants, attractions, and
events of on and off campus; UPortfolio, which assesses student development and skill-competency; a
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UFlash, a library of pre-written magazine-style content that covers health, relationships, money, travel,
trends, and politics; and UFindIt, which provides information of tutoring, supplemental instruction, library
January 2013
services, and clubs and activities. It also offers Student Wellness Suite that provides a suite of online
student health and wellness services. In addition, the company offers Web site design and development,
branding, and project-based consulting services.
A member of BMO

GoingOn Adurion KG, Armada Investment Group AG, Beechtree Social Media GoingOn is an innovative academic social networking platform that enables students, faculty, and
Capital, Granite Ventures administrators to more effectively connect, collaborate, and learn. GoingOn offers the first fully integrated
solution for higher education that allows institutions to build an internal academic network where students
and faculty can more easily share resources, create online communities and curate their academic
connections - while keeping it all separate from their personal social networks.
Google EDU GOOG (NasdaqGS) Collaboration Google provides free apps for qualifying educational institutions.
GradesFirst N/A Retention GradesFirst is a 100% web based solution Retention Management System that enables Student Services
and Athletic Department staff to easily monitor and dramatically improve retention and academic success
Financial Group
of students. The system allows for monitoring of students' advising and tutorial appointments,
assignments, progress reports, class attendance, monitored study hall time, and much more.
Grand Canyon University LOPE (NasdaqGS) Grand Canyon Education, Inc. provides postsecondary education services in the United States and
Canada. It focuses on offering graduate and undergraduate degree programs in education, healthcare,
business, and liberal arts disciplines. The company provides its courses through traditional ground
campus in Phoenix, Arizona; online; and onsite at the facilities of employers. As of December 31, 2011, it
had 43,917 students enrolled in its courses.
Grockit Atlas Venture, Benchmark Capital, GSV Capital, Integral Test Prep Grockit is an online test preparation platform that delivers tutoring through collaborative and social
Capital Partners, New Schools Ventures learning including peer-to-peer interaction and gaming.
Guaranteach Sophia Learning Intervention Core Guaranteach (now known as Sophia Pathways) provides access to online math videos. An algorithm
makes recoomendations around videos to view based on individual learning preferences.
Headsprout DYMO/Mimio ITT Intervention Core Headsprout helps children master key academic skills through a supplemental, animated, online reading
program.
HeyMath N/A Intervention Core HeyMath is a web-based, interactive math program designed to supplement the core curriculum.
Higher One ONE (NYSE) Education Technology Higher One Holdings, Inc. provides technology and payment services to the higher education industry in
the United States. The company provides a suite of disbursement and payment solutions for higher
education institutions and their students.
Higher Technology N/A Education Technology Higher Technology Solutions, Inc. provides information technology consulting solutions to educational
Solutions institutions. It offers campus training, student administration, project planning, process reengineering, and
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system design services. The company's clientele include California State University, University of
Missouri, and Case Western Reserve University. Higher Technology Solutions, Inc. is based in Bartlett,
Hippocampus (NROC) Monterey Institute for Technology and Education (Non- Courses HippoCampus develops and shares multimedia course content through an open source platform as a way
Profit) to improve access to quality general education materials for all students.
H-ITT N/A Assessment Systems H-ITT, Hyper-Interactive Teaching Technology, is a provides high-performance, interactive electronic
audience response systems. The company designs and manufactures both Infrared and Radio Frequency
hardware, and creates software applications that serve the educational and commercial markets. H-ITT
services elementary, middle and high schools; colleges and universities; and corporate teaching
environments worldwide.
HOSTS Learning N/A Professional Development HOSTS Learning, Inc. provides classroom and mentoring & intervention solutions that support the
Services teaching process and supplemental mentoring programs for students. The company’s technology allows
to align curricula, and connects teacher resources to state and local objectives while customizing learning
plans for all students. Each student is assessed to determine instructional level and learning objectives.
Using this information and an electronic database, an individualized plan is developed that addresses the
instructional and developmental level, learning style, and learning objectives for a specific student or
group. The HOSTS Learning System includes HOSTS Structured Mentoring, HOSTS LearnerLink, and
HOSTS Professional Development.
HotChalk Mohr Davidow Ventures; NBC News Bureaus, Inc. LMS HotChalk is a learning environment for K-12 teachers, students and parents that includes a learning
management system, a library of teacher-contributed lesson plans, premium digital content, and
professional development for teachers in a Web-based environment.
BMO Capital Markets

January 2013
A member of BMO

Houghton-Mifflin Houghton Mifflin Riverdeep Group Educational Publishing Houghton Mifflin Company publishes textbooks, instructional technology, assessments, and other
educational materials for teachers and students worldwide. The company operates four divisions: School,
College, Trade and Reference, and International. The School division publishes workbooks, teacher
guides, audio-visual guides, and computer software; science, reading, language arts, mathematics, and
social studies textbooks; an integrated pre-K curriculum; programs for reading and math intervention,
professional development tools, and learning technologies; materials for summer school, afterschool,
intervention programs, and quality test preparation; and print and technology materials for language arts,
mathematics, social studies, world languages, and science for grades 6-12. The College division offers
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print and electronic materials; interactive learning, online course management, and faculty development
tools for students and instructors; and clinical, state, formative, educational, and group assessment
I Need a Pencil CK12 Foundation Test Prep I Need a Pencil offers comprehensive SAT preparation.
ICAN LEARN Education N/A Intervention Core I CAN Learn offers a full online math curriculum.
Systems
iClicker Macmillan Assessment Systems Audience Response system that is used by over 500,000 students at more than 450 institutions, as well
as many companies in North America.
Ignite! Learning, Inc. Murphree Venture Partners; Saints Capital Core / Supplemental Ignite! Learning, Inc. develops research-based classroom curriculum. The company offers solutions with a
Curriculum focus on promoting students’ critical thinking, supporting local classroom instruction, building teacher
capacity and content literacy, and integrating existing school technology. It offers math, science, and
social studies curricula for educators. The company’s solutions include digital content solutions, such as
various educational multimedia solutions, including music video, animation, and interactive pieces to teach
math, science, and social studies curricula through various delivery platforms for middle schools; and
elementary school solutions, including applications that consist of models and introductions for elementary
school students to prepare for middle school. It also provides middle school digital content solutions,
which include curriculum for middle schools and instructional support staff.
Illuminate Education N/A Reporting Systems Provides a comprehensive data system that integrates student information system, data and assessment
suites, and speciali education features.
Imagine Learning Sorenson Capital Intervention Core Imagine Learning offers language and literacy focused educational software that engages students to
build academic vocabulary and build skills.
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Infinite Campus SIS Infinite Campus, Inc. provides Web based student information systems for districts, regional consortia,
state departments of education, and federal government. It provides integrated tools, such as streamlining
student administration, stakeholder collaborations, and individualized instructions; school services, such
as fee management, food services, locker management, and document management; communications,
such as email and phone messengers, emergency messengers, form letter wizards, mobile interfaces,
parent/student portals, parent/student/staff surveys, and user notices; and reporting and analysis services,
such as ad hoc reporting, integrated state reporting, SQL reporting services, standard reports, data
analysis and visualization, and data warehousing services. The company also offers student tracking, data
collection, data management, and electronic transcript services. Infinite Campus, Inc. was founded in
1993 and is based in Blaine, Minnesota.
Infobase Publishing Veronis Suhler Stevenson Educational Publishing Infobase Publishing Company provides supplemental educational materials to the school and library
Company markets. It offers books, e-books, online databases, e-learning modules, videos, and digital products. The
company provides information on history, science, literature, careers, health, and social issues for
students, librarians, and educators. Infobase Publishing Company was founded in 1941 and is based in
Inigral Bill & Melinda Gates Foundation Asset Trust, Retro Student Acquisition & Inigral, Inc., a higher education social media company, designs and develops Facebook application for
Venture Partners, The Founders Fund, Western Retention higher education. Its product includes Schools on Facebook, an application for colleges and universities,
Technology Investment which helps students discover and engage with their school, and helps schools achieve results through
the Facebook platform. The company’s social Web for education is using social media to help colleges
with recruiting, retention, and alumni relations.
Inkling, Inc Pearson, McGraw Hill, Felicis Ventures LLC, Kapor Educational Software Inkling, Inc. offers software as a service prediction market platform for corporations, start-ups, academic,
Capital, Sequoia Capital, Sherpalo Ventures, Y non-profit, and government institutions. The company’s prediction market platform enables organizations
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Combinator and individuals to collect information from their employees, peers, and customers to enhance forecasting
processes, predict corporate metrics, identify future innovations, and forge new communication and
collaboration channels. It also offers business and technical support services, including custom software
January 2013
development consulting, starter workshops, and technical support. The company was founded in 2005
and is based in Chicago, Illinois.
A member of BMO

Innovatia Inc. N/A Training Innovatia, Inc. creates and delivers knowledge management solutions. The company focuses on offering
solutions, such as documentation, eLearning, technical support, and professional services. Its products
and services include installation manuals, software configuration guides, user guides, technical reference
guides, release notes, and online help; and documentation services, such as research, writing, editing,
and proofreading for various publications. The company also engages in the production of manuals,
handbooks, and user guides. In addition, it offers a range of live online classrooms, self-paced online
learning, facilitated online learning, and physical classroom training. It serves original equipment
manufacturers (OEM) and network service providers (NSP) in the telecommunications and information
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technology (IT) industries

Innovation Teaching N/A Teacher Tools Innovation Teaching is a suite of tools to help teachers track and meet their students needs. Includes a
school management system and a leveled library.
Inside Higher Ed Advantage Capital Partners, Enhanced Capital Partners, Social Media Inside Higher Ed, Inc. operates as an online source for news, forums, opinions, and jobs of higher
The Grosvenor Funds education. It offers feature stories, daily commentary, areas to comment on article, and career columns,
as well as a suite of tools for higher education professionals to get jobs, identify colleges, and hire
employees. The company was founded in 2004 and is based in Washington, District of Columbia.
Insight Schools K12, Inc. (NYSE:LRN) Online Instruction Insight Schools operates a network of online high schools that provide an individualized experience for
students using an independent study course format.
InstaEDU, Inc. The Social+Capital Partnership InstaEDU, Inc. offers online on-demand video tutoring services to high school and college students.
Instructure EPIC Ventures, Gideon Hixon Fund, OpenView Venture LMS Instructure, Inc. provides Canvas, an open-source learning management system that communicates with
Partners, TomorrowVentures, University Venture Fund students, teachers, and administrators using methods and tools. It offers Canvas CV for institutions with
IT staff, data center, staff to support users, and capability to update and maintain environment, including
optional 3rd party integrated systems; Canvas Onsite for institutions with IT staff and data center
resources that require mission-critical support, optional professional services, and mobile capabilities; and
Canvas Cloud for institutions with minimal IT staff that requires reliability and peak time scalability, and
mobile capabilities. The company was founded in 2008 and is based in Salt Lake City, Utah.
IntelliTools Cambium Learning Group, Inc. (NasdaqGM:ABCD) Educational Publishing IntelliTools, Inc. provides learning solutions for preK-8 classrooms, produces software, and adaptive
hardware products for the education industry. The company’s education software toolset for K-8
curriculum support, designed for general education and special needs students, and diverse classroom
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needs. It also produces additional activities-based reading, writing, and math programs. The company
was founded as Unicorn Engineering in 1979 and was renamed as IntelliTools, Inc. in 1991.
Interwrite Learning eInstruction Corporation Instructional Management As of January 7, 2008, Interwrite Learning was acquired by eInstruction Corp. Interwrite Learning provides
interactive learning solutions for primary, secondary, and higher education markets. Its products include
Interwrite Board, an interactive whiteboard; Interwrite Cricket, an assessment solution; Interwrite Pad, a
wireless pad; Interwrite Panel, a LCD panel; Interwrite PRS, a student response system that gives
feedback and assessment in the classroom; and Interwrite Workspace, an educational software
application for creating, teaching, and assessing student performance using digital content. The company
also offers K-12 solution, a learning solution; higher education solutions; and educators resource center, a
community for teachers to download lessons, get training, and share ideas for the interactive classrooms.
It offers its products through authorized resellers and distributors in the United States, Africa/the Middle
East, Americas, the Asia/Pacific, and Europe. Interwrite Learning is based in Columbia, Maryland. The
company has sales and support offices in Scottsdale, Arizona; and Munich, Germany.
Inventive Technology N/A LMS MediaCAST, by Inventive Technology, is a digital content management and video streaming solution for
higher education institutions. Add video and rich media to your LMS. Distribute recordable channels
campus-wide with Digital IPTV. Broadcast events live, nationwide. Ask us about our hosted bandwidth,
Cloud Hosted Edition and distance learning solutions.
iObservation N/A Observation iObservation collects, manages and reports longitudinal data from classroom walkthroughs, teacher
evaluations and teacher observations.
BMO Capital Markets

January 2013
A member of BMO

iParadigm Warburg Pincus LLC Content / Instruction iParadigms, LLC provides plagiarism prevention solutions for the textual intellectual property protection of
written work on the Internet. Its products include Turnitin, which provides Web-based applications for
students to develop writing skills, as well as helps instructors to increase productivity and decrease
workload; iThenticate that allows for the digital originality verification of manuscripts; and Plagiarism.org,
an online resource for educators concerned with the growing problem of Internet plagiarism. The company
also provides PeerMark, a peer review product for educators, which enables high school and college
instructors to create and manage peer review assignments in which students read and provide
substantive comments on each other's work.
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iPrep Academy N/A Online K-12 School Miami's iPrep Academy blends online learning with in-person instruction. Teachers give short lectures
Operators and offer one-on-one help, but most learning is self-directed and online. iPrep Academy provides students
with a technology-rich environment with opportunities for internships and community-based projects.
IQity N/A LMS E-Learning platform that allows electronic search and delivery of curriculum, courses and other learning
objects
iReady Curriculum Associates Courses iReady offers online, computer-adaptive courses in reading and math.
iRemix N/A Social Learning Remix Learning provides an easy-to-use, customizable cloud-based social learning network for primary
and secondary education.
ISOPIA Inc. Oracle America, Inc. LMS As on 07/26/2001, ISOPIA, Inc. was acquired by Sun Microsystems, Inc. ISOPIA, Inc. provides technology
solutions for training organizations, corporate training sites, and application service providers. It offers
Integrated Learning Management System, a Web-based application designed for the management of a
training business, supporting first generation classroom, second generation CBT, and third generation
Web-based training media. The company also provides e-learning applications, such as training,
authoring tools, course management systems, collaborative software, virtual classrooms, and add-on
tools. The company was founded in 1998 and is headquartered in Toronto, Canada.
iStation N/A Intervention Core iStation is publisher of online reading intervention programs and curriculum based assessments. The
interactive, animated course content focuses on key areas of reading fluency and comprehension.
itslearning Creandum AB, Viking Venture AS LMS A learning management system designed to provide a content library, individualized instruction, and
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school wide synchronization.

iXL Math N/A Intervention Core IXL is an online math tool that allows teachers and parents to monitor the progress of their students and
motivate them through interactive games and practice questions.
JAR Systems N/A Education Hardware Creates mobile classroom solutions
Jenzabar Bank of America, MCG Capital Corporation, Omnicom Educational Software Jenzabar, Inc. develops enterprise software and services for higher education in the United States and
Group, Simon Worldwide, Wells Fargo internationally. It offers Web-enabled enterprise software with student, institutional advancement, human
resources, and financial applications; e-learning solutions; and a higher education enterprise information
portal. The company also offers professional and support services, including implementation, training,
customer support, and technical services, as well as enrollment, retention, and advancement consulting
services. It serves students, professors, administrators, and staff, including private liberal arts, state, and
community colleges and business, medical, law, and various graduate schools.
Jones & Bartlett Learning, JBP Holdings, LLC ; Massachusetts Capital Resource Assessment Jones & Bartlett Learning, LLC, an educational services and professional training organization, provides
LLC Company, Providence Equity Partners LLC instructional, assessment, and learning-performance management solutions for the secondary, post-
secondary, and professional markets. It offers career education solutions, corporate solutions, pharma
solutions, and higher education solutions. The company publishes teaching, learning, and professional
reference materials in the areas of health sciences and professions; nursing and medicine; EMS, fire, and
safety; biological, physical, and social science; computer science; careers and trades; criminal justice, law
enforcement, and public administration; gaming, math, and engineering; and electrical and automotive. Its
custom solutions include custom printed and electronic textbooks, printed and electronic study/companion
guides, custom printed and electronic chapters, and electronic instructor and student resources. The
company also provides eLearning tools, which helps teachers design coursework, set assignments, and
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manage their classroom efficiently.
January 2013
A member of BMO

Jones International Glenn Jones Post-Secondary School Jones International, Ltd. engages in the Internet, e-commerce, software, education, and entertainment
Operators projects. The company, through its subsidiaries, provides online degree and training programs, libraries,
tutorials, research guides, general reference collection, government resources, financial aid and career
development guides, electronic books, and databases; mobile device based testing/assessment software
solutions for the wireless carriers, media outlets, and content providers; radio and television programming;
motion picture, documentary and distribution, and film and television projects; customer care and
enhanced relationship management software products for the convergent communications markets; and
online learning software solutions.
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Junyo Learn Capital Venture Partners, NewSchools Venture Junyo provides visualizations, intelligent insights, and recommendations that enable educators to make
Fund, Investment Arm smart decisions and help students learn more every day. It serves schools, publishers, and online learning
providers that use data and analytics to improve student outcomes, and enlighten and inspire young
K12 Inc. (LRN) LRN (NYSE) Online Instruction K12, Inc., a technology-based education company, provides proprietary curriculum and educational
services for online delivery to students in kindergarten through 12th grade (K12) primarily in the United
States. Its products include K12 Curriculum, which consists of online lessons, offline learning kits, and
teachers guides; online school (OLS) platform, a Web-based software platform that provides access to its
online lessons, as well as its lesson planning and scheduling tools and progress tracking tool; and student
administration management system that organizes, updates, and reports information, which is collected
through interfaces with its OLS and related management systems. The company also offers a
combination of tools that foster communication and interaction among virtual public school students and
Kaplan The Washington Post Company (NYSE:WPO) Test Prep Kaplan, Inc. provides educational services to individuals, schools, and businesses in the United States
and internationally. Its international programs include higher education, test preparation, language
instruction, and professional training. The company provides after-school learning programs to children in
grades pre-K-10; and K12 learning services. It also prepares students for various tests, including entrance
exams for secondary school, college, and graduate school, as well as English language and professional
licensing exams; and offers private tutoring and one-on-one admissions guidance. In addition, the
company offers students career-oriented Master's, Bachelor's, and Associate's degrees, as well as
certificates and diplomas; and provides students with training to obtain and maintain professional licenses
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and designations in the fields of securities, insurance, financial services, real estate, and information
Kaplan Virtual Education K12, Inc. (NYSE:LRN) Online Instruction Kaplan Virtual Education offers flexible and individualized curriculum and instruction for middle and high
school students by partnering with public and private schools to expand their course offerings and by
operating three Kaplan Virtual Education schools.
Khan Academy NewSchools Venture Fund, Investment Arm Intervention Core Khan Academy Inc. is an educational institution that provides a free world-class education via an online
video library, practice exercises, and assessments.
Kickboard N/A Teacher Tools Kickboard is a classroom management program that integrates student academic and behavior records,
highlights trends, and automated classroom management systems.
Knewton Accel Management Co, Inc., Bessemer Venture Partners, Test Prep Knewton has developed an adaptive learning platform that customizes educational lessons for individual
First Round Capital, FirstMark Capital, L.L.C., Pearson students.It recently ranked on Fast Company's list of the world's 50 Most Innovative Companies. The
plc (LSE:PSON), The Founders Fund platform is being used by thousands of students in nearly 200 countries. Located in Midtown Manhattan,
Knewton employs 70 and has raised $54 million in venture capital.
Kno, Inc Active Starts, Andreessen Horowitz, First Round Capital, Online Learning Kno, Inc. intends to develop portable electronic devices for receiving, displaying, reading, and playing
FLOODGATE, SVB Silicon Valley Bank, TriplePoint electronically published materials. Kno, Inc. was formerly known as Kakai, Inc. The company was
Capital incorporated in 2009 and is based in Santa Clara, California.
Knovation (fka N/A Curriculum Knovation is dedicated to transforming education from a one-way, one-size-fits-all approach to a learner-
netTrekker) centered approach that minimizes environmental, emotional, functional and stylistic learning barriers and
is customized to the unique needs of every learner.
Knowledge Delivery J. Burke Capital Partners, LLC PD Systems Knowledge Delivery Systems, Inc. provides online strategic professional development, state certification,
Systems master's degree programs, and career advancement for teachers and administrators. It offers
professional development, salary advancement, specialized programs, and graduate and masters degree
programs for teachers. The company’s course subjects include 21st century skills, assessment and
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grading, classroom management, common core state standards, diverse learners, education technology,
effective instruction, and leading effective schools. It also provides KDS eClassroom, an online platform
January 2013
Source: CapitalIQ and BMO Capital Markets f id b d t t

A member of BMO

Knowledge Management Gabriel Venture Partners LMS Knowledge Management Solutions, Inc. licenses and hosts knowledge and learning management
Solutions, Inc. solutions. The company provides KMx Enterprise, an advanced distributed learning platform that provides
integrated e-learning content development, learning and performance management, learning content
management, and virtual classroom technologies. It offers Learning Management, which delivers various
blends of learning; Performance Management that creates and manages personnel classification profiles
to measure the qualifications of employees, agents, vendors, and suppliers; Training Development to
design, develop, and deliver online training; Performance Support to provide just-in-time and just enough
support materials; and Talent Management to recruit, retain, and develop personnel. The company also
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provides startup, instructional design and development, instructional content conversion, marketing, and
learning services through a network of partners and resellers.
Koofers, Inc Altos Ventures, LaunchBox Digital, New Atlantic Online Learning Koofers, Inc. operates an online community that serves the academic needs of college students through
Ventures, QED Investors LLC, Revolution LLC information sharing. It offers course selection, final exams, note taking, and course and instructor
ratings/grade distribution services, as well as an online library for sharing past exams and study materials
services. The company was founded in 2008 and is based in Reston, Virginia.
LanSchool Technologies Stoneware, Inc. Classroom Devices LanSchool Technologies LLC provides classroom management and monitoring software for the education
market. The company’s classroom management software provides various solutions, which include
student testing; muting that allows teachers to mute the sound on student computers; secure mode; blank
screen enhancements; real-time keystroke monitoring; task manager, which prevents students from
hacking the computer; and toolbar configuration. Its LanSchool v7.2 allows teachers to remove
distractions, such as the Internet, instant messaging, email, and games from the classroom. The
company markets its products through resellers in the United States and internationally.
Latimer Education, Inc Maveron LLC Online School Operators Latimer Education, Inc. designs and develops online university providing instructional tools delivered by
professionals dedicated to student achievement. Latimer Education, Inc. is based in Washington, District
of Columbia.
Lawson GGC Software Holdings (affiliate of Golden Gate Capital HR Systems Provides enterprise-wide technology to streamline operations and create efficiencies between finance,
and Infor) procurement and human resources.
LearnBoost Argent Ventures, LLC, Atlas Venture LLP, Bessemer Teacher Tools LearnBoost, Inc. offers an online education platform and software that provides classrooms with
Venture Partners, Charles River Ventures, RRE Ventures collaborative real-time tools, interactive communities, shared content, educational applications, and
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LLC classroom management solutions. Its solutions enable students and teachers concentrate on the primary
tasks of organization, collaboration, and learning. The company also provides administrative tools to
manage students, classes, and teachers through a permissions system. LearnBoost was incorporated in
2010 and is based in San Francisco, California.
Learning A to Z Non-Profit Intervention Core Learning A-Z specilizes in online delivery of supplementary curriculum and leveled readers to help
teachers differentiation instruction.
Learning Tree LTRE (NasdaqGM) Training Learning Tree International, Inc. engages in the development, marketing, and delivery of a library of
instructor-led classroom courses for the professional development of managers and information
technology professionals worldwide. It provides education across a range of technical and management
disciplines, including operating systems, databases, computer networks, computer and network security,
Web development, programming languages, software engineering, open source applications, project
management, business skills, and leadership and professional development.
Learning.com First Analysis Corporation; Educomp Solutions Limited Specialized Core Learning.com provides Web-enhanced instruction solutions in the United States. Its solutions include
(BSE:532696) ; Reference Capital Management, LLC; EasyTech, a literacy curriculum that helps students develop and apply technology skills in math, language
eFund LLC; First Analysis Equity Fund IV, L.P. arts, social studies, and science; TechLiteracy Assessment, a technology proficiency assessment that
provides educators with the data to understand how well students grasp foundational technology skills;
and Aha!Math, an interactive supplemental math curriculum that supports teachers to improve students'
foundational math skills while developing their higher level problem-solving and reasoning skills.
LearningElements, Inc. Edmentum (fka PLATO Learning, Inc.) Educational Software LearningElements, Inc. develops curriculum-based literacy software, verbally interactive educational
software, curriculum supplements, and teacher development programs. The company also develops multi-
sensory learning and enhancing programs for reading, writing, spelling, comprehension, and expression.
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LearningElements was founded in 2000 and is based in Bethesda, Maryland.
January 2013
A member of BMO

LearningExpress, LLC Allen & Company Assessment LearningExpress, LLC provides Web-based and print test-preparation materials in the areas of academic,
licensing, and certification exams for students and adults. The company focuses on writing programs,
diagnostic and formative assessment, customized test preparation, professional development, and career
and vocational resources. Its solutions include LearningExpress Folio, a writing assessment program with
specific assessments; LearningExpress eFolio that provides automatically scored writing assessments;
and LearningExpress Advantage, a Web-based teaching and learning subscription program that brings
skill-building, assessment, test preparation, reporting, and vocational resources.
LearningSoft, LLC Mobius Venture Capital, Inc., The Jacoby Group, Inc. Mobile Learning LearningSoft, LLC produces wireless computing platforms for education. It offers Indigo Learning System,
Financial Group
which delivers assessments to students using student computers and a wireless network that allows
teachers to instantly see results and plan instruction accordingly. The company is based in Pembroke
Pines, Florida. LearningSoft, LLC operates as a subsidiary of The Jacoby Group.
Learnzillion NewSchools Venture Fund, Social Venture Fund Teacher Tools LearnZillion, Inc. provides online video lessons for teachers, children, and parents. The company’s online
video lessons highlight a Common Core standard starting with math in grades 3 to 9. LearnZillionhas
raised a $2.4M Series A round in April 2012 from a syndicate of 17 investors. One of the investors is the
Social Venture Fund, a student-led fund at the University of Michigan’s Stephen M. Ross School of
Business
LessonLab, Inc. Pearson plc (LSE:PSON) Professional development LessonLab, Inc., an independent research company, provides teaching and learning solutions in K-12
classrooms. It offers Visibility, a technology platform, which allows teachers to study and improve their
practices in the classroom settings. The company helps independent researchers to do research on the
improvement of teaching and learning in classrooms. Its researches include trends in international
mathematics and science study, a cross-national study of eighth-grade classroom mathematics and
science teaching; science teachers learning through lesson analysis; algebra learning for all, a field trial of
mathematics professional development program; video cases for science teaching analysis; capturing
teacher knowledge, an instrument development and validation project for mathematics teaching; learning
teams, a research-based program, which supports improvements in teaching; and research network, a
relationship with research interested graduate students.
Lexia Learning N/A Intervention Core Lexia Learning Systems, Inc. builds software, curricula, and professional development programs for
teachers to teach basic skills. The company offers Lexia Primary Reading, a computer based
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supplemental reading program, which is designed to learn basic reading skills; and Inicio a la Lectura that
helps American teachers to meet federal requirements for bilingual students to learn to read in Spanish
and then transition to reading in English. It also offers Lexia Reading, which includes early reading,
primary reading, and strategies for older students; Lexia Quick Reading Test, a computerized reading
assessment tool that evaluates student decoding skills with non-words; and Lexia Comprehensive
Reading Test, an assessment program that analyzes kindergarten readiness, phonics and decoding skills,
sight words, reading comprehension, rate, and fluency using miscue analysis. In addition, the company
offers Teaching Reading: Stages and Strategies, which provides theoretical and practical foundation to
Liaison International, Inc. Polaris Venture Partners, Inc., Warburg Pincus LLC IT Systems i f
Liaison d id
International,diInc. iprovides
t ti information technology products and services to educational
associations, health professions associations, accrediting agencies, and institutions of higher education.
Lightspan, Inc. Edmentum (fka PLATO Learning, Inc.) Core / Supplemental Lightspan, Inc. provides curriculum-based educational software, and online products and services, which
Curriculum are used in school and at home. The company’s products and services include K-8 Software, K-12 Online,
Lightspan Early Reading Program, The Lightspan Network, Lightspan Reading Center, and Online
Assessment. Lightspan Achieve Now, a product for students of kindergarten through eighth grade, or K-8,
is a series of interactive software programs that covers the core curriculum of language arts, reading, and
mathematics. It includes school and home learning activities, teacher materials, on-site and technology
based professional development, and student assessment. K-12 online subscription products and
services provide teachers, students, and parents with various online learning resources. The Lightspan
Early Reading Program is designed to enhance and extend balanced literacy instruction in kindergarten
through third grade. The Lightspan Network, a suite of tools and resources, helps to simplify a teacher’s
instructional planning and supports ongoing professional growth.studies.
BMO Capital Markets

Linkit! N/A Assessment Systems Linkit! Is a system for assessment creation, delivery, scoring, and reporting.
January 2013
A member of BMO

Livemocha August Capital, Maveron LLC Specialized Core Livemocha is an online language learning community, offering language courses in 35 languages.
Program design combines online language learning with interactions and opportunities to practice with
native speakers from around the world.
Longsight Group, The N/A LMS Supports carefully-selected open source applications for higher education market. www.longsight.com
lookred N/A Data Warehousing lookred provides data management tools and a data warehouse to help educators identify and analyze
patterns and trends and make informed decisions.
Lore, Inc. BoxGroup, Founder Collective, Great Oaks Venture Lore, Inc. provides a cloud-hosted service for instructors to manage their courses and engage their
Capital LLC, IA Ventures, Shasta Ventures, The students. It offers tools for gradebook, file management, communication, and calendaring with social
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Founders Fund, The Social+Capital Partnership networking features that enable students to communicate with each other.
LoudCloud Systems N/A IT Systems LoudCloud Systems, Inc. offers learning management systems for higher education and K12 markets in
the United States and internationally. It offers LoudCloud Ecosystem for mobility, social and collaborative
technologies, learning, and predictive analytics; Adaptive Reader Technology, an e-reader platform that
provides a social learning experience; Assignments, a tool to manage individual and group submissions,
run plagiarism checks, and grade using configurable rubrics; Behavioral Analytics Reporting System that
enables users to track - and predict - student and instructor performance, make appropriate learning
interventions, and detect at risk students; Class Management for optimizing instructor resources, as well
as database capacity class management and scheduling tools; Collaborative Learning that provides built-
in forums, chat, whiteboard, and social collaboration features; Course Builder that enables instructors and
program managers to build courses; E-File Cabinet for storing, managing, and sharing files.
Lumos Labs, Inc. Discovery Communications, Inc. (NasdaqGS:DISC.A), Lumos Labs, Inc. operates Lumosity.com, an online tool for cognitive enhancement. The company offers
(Lumosity) FirstMark Capital, L.L.C., Harrison Metal Capital, Menlo various Web-based brain training programs targeting brain areas, such as memory, attention, and
Ventures, Norwest Venture Partners processing speed to produce cognitive benefits. It offers brain games and exercises, and personalized
training programs; and mobile training solutions for iPhones, iPod touch devices, palm pre devices, and
Lynda.com N/A Online Learning d id h Inc. provides online computer skills education training programs for consumers, businesses,
Lynda.com,
and schools. It offers subscription-based Online Training Library, corporate wide training, academic
classroom training, professional development, campus wide training programs, and CD and DVD-based
video training programs. The company provides its training in the areas of 3D, audio, digital video, digital
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photography, graphic design, Web and interactive design, business, and development; and various
software tools, including Photoshop, Flash, Dreamweaver, Logic, Illustrator, and Office. In addition, it
offers its software training tutorials on iPhone
Mangahigh Learn Capital Venture Partners, PROfounders Capital Games MangaHigh is game based learning site where students learn and practice Mathematics skills through
adaptive games.
MAP Northwest Evaluation Association (non-profit) Assessment Systems MAP is a data driven instructional system from NWEA and used to track, sort, and create assessments
for students.
MasteryConnect Imagine K12, Learn Capital Venture Partners, Assessment Systems MasteryConnect Inc. provides formative assessment tools. It offers MasteryTracker, which enables
NewSchools Venture Fund teachers to assess core standards, monitor student performance, and report student mastery to parents
and administrators; and BubbleScore, which provides gradebook and assessment tools for non-core
Matchbox (fka AdmitPad) Felicis Ventures, FLOODGATE, Greylock Partners Student Acquisition & Matchbox, Inc. develops and delivers software solutions for universities and schools to accelerate and
Retention improve their recruitment process. It integrates online application, student information, and CRM systems
for admissions professionals. The company offers Admissions Systems that consists of a role-based
distribution system with features, such as best practices to streamline admissions process; an electronic
score card; and annotation, flexible and customizable roles, assignments, and analytics, as well as
features to streamline the assigning and distributing of applications to reviewers. It provides its admissions
solutions in a software-as-a-service model via a cloud-based architecture delivered to Web and mobile
device clients
Mathalicious Teacher Tools Mathalicious provides middle and high school teachers with relevant, engaging, and effective math
lessons. They do this by designing lessons around real-world topics that students care about, from sports
to technology to health & wellness.
BMO Capital Markets

Mathscore.com Accurate Learning Systems Corporation Intervention Core Mathscore offers online math practice and assessment software that uses game-like learning, and video
game style scoring and rankings to move to next level.
January 2013
A member of BMO

The McGraw-Hill MHP (NYSE) Basal Content The McGraw-Hill Companies, Inc. provides information services and products to the education, financial
Companies services, and business information markets worldwide. Its McGraw-Hill Education segment operates as a
global educational publisher. This segment comprises School Education Group, which provides
educational and professional development materials to pre-kindergarten to 12th grade market, as well as
assessment and reporting services; and Higher Education, Professional, and International Group that
provides e-books, online tutoring, customized course Web sites, subscription services, and materials to
the higher education market, as well as professional, reference, and trade publishing for medical,
business, engineering, and other fields. The company’s Financial Services segment, operating under the
Financial Group
Standard & Poor’s brand, provides independent credit ratings covering corporate and government entities,
infrastructure projects, and structured finance transactions; data and information services offering
financial information on companies, securities, and indices.
McGraw-Hill Assessment The McGraw-Hill Companies, Inc. (NYSE:MHP) Assessment McGraw-Hill Assessment & Reporting provides educational assessment and reporting solutions. It offers
& Reporting electronic and print products for the pre-kindergarten to 12th grade, higher education, and professional
markets. The company was founded in 2004 and is based in New York. McGraw-Hill Assessment &
Reporting operates as a subsidiary of McGraw-Hill Education.
McGraw-Hill Digital The McGraw-Hill Companies, Inc. (NYSE:MHP) Online Learning McGraw-Hill Digital Learning provides research-based technology solutions for student performance
Learning improvement and teacher productivity. Its solution, Yearly ProgressPro, provides educators with a variety
of tools to assist them in the classroom. The company is based in Columbus, Ohio. McGraw-Hill Digital
Learning is a subsidiary of McGraw-Hill Education.
Measured Progress N/A Professional Development Measured Progress, Inc. develops and delivers K-12 educational assessments and related professional
Services development programs for teaching and learning. The company also develops and administers the New
England compact assessment programs for New Hampshire, Rhode Island, and Vermont. In addition, it
provides professional development programs and services to teachers and administrators in New
Hampshire school districts. Further, the company offers advisory services for improvement of student
learning. It serves states, districts, schools, educators, and students.
Measurement, Inc. N/A Measurement Incorporated provides educational and professional examinations, program evaluation, and
related services. It develops and scores tests in various critical content areas, including writing, reading,
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mathematics, science/technology, social studies, fine arts, and health; and provides tools and services to
assess the skills of teachers, translators, and other professionals.
Meds Publishing Assessment Technology Group Training MEDS Publishing combines educational methodologies with cutting-edge technology to bring learning
solutions to students, educators, and professionals in the healthcare profession using mentoring,
coaching, and remediation . Test Question Logic (TQLogic™), is a step-by-step process for learning,
simplifying the education process, and creating the foundation for success. MEDS’ products are
developed by top nurse educators to ensure total curriculum support for fellow nurse educators, hospitals,
MentorMob N/A MentorMob, Inc. operates an online community that allows users to create and edit online learning
playlists
MetaMetrics N/A Assessment Systems MetaMetrics provides scientific measures of academic achievement and complementary technologies that
link assessment results with real-world instruction.
Metria N/A Assessment Systems Metria is an integrated education management software suite for teachers, schools, districts, and states. It
supports the latest best practices in K–12 education including standards, formative assessments,
interventions, longitudinal data, and collaboration
Michigan Virtual Non-Profit Online Instruction Michigan Virtual School offers middle and high school students with tools and over 150 online courses to
help students meet the state's online graduation requirement. They also offer Michigan's K-12 educators
with courses and resources to meet the state's professional development requirements.
Microsoft Live@EDU MSFT (NasdaqGS) Collaboration Microsoft Live@edu offers an extensible platform that delivers control, enhanced security and other
features to K12 institutions
MIND Research Institute Non-Profit Intervention Core MIND Research Institute offers math instructional courseware that is non-language based, visual
instruction software.
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MindSnacks, Inc. 500 Startups, Collaborative Fund, DreamIt Ventures, MindSnacks, Inc. develops and builds educational games for touch-based devices. Its games enable
ENIAC Ventures, Felicis Ventures, Kapor Capital, beginner and intermediate level foreign language speakers to build vocabulary, reading, listening, and
Sequoia Capital, Startl, Inc., StartupAngel.net, Theoria conversational skills. The company offers its games to learn, French, German, Italian, Chinese,
January 2013
Capital Management Pte Ltd. Portuguese, Spanish, and English languages; and SAT vocabulary.
A member of BMO

MindSurf Inc. Educational Testing Service Mobile Learning MindSurf Inc. manufactures and markets educational technology software such as wireless educational
application. The company designs electronic learning and study tools for wireless communications
devices. MindSurf Inc. caters to school children. The company was founded in 2000 and is based in
Baltimore, Maryland. As per the transaction announced on August 26, 2002, Mindsurf operates as a
subsidiary of Educational Testing Service, Inc.
Moodle Non-profit LMS Moodle is a Course Management System (CMS), also known as a Learning Management System (LMS)
or a Virtual Learning Environment (VLE). It's a free open-source web application designed to help
educators create effective online learning sites.
Financial Group
MoodleRooms Blackboard (Providence Equity Partners) LMS Moodlerooms, Inc. provides an online learning platform that solves the instructional, financial, and
technology needs for K-12, higher education, corporations, government agencies, and non-profit
organizations. The company provides basic hosting, standard hosting, and enterprise-level services,
including an e-portfolio and digital repository; training solutions; and customization services, including
project management/administration, custom module and application development, international
deployment consultation, open source consulting, code review and certification, and formally tested and
reviewed releases. It provides solutions using a software-as-a-service model. The company was
Motion Math 500 Startups, Kapor Capital, Ulu Ventures, Vformation Motion Math Inc. develops movement-based mobile math game suite. The company’s product helps
LLC, Wasabi Ventures, LLC learners perceive and estimate various representations for fractions, such as numerator over
denominator, percents, decimals, and pie charts. Its product connects each type of representation with its
distance on the number line that enables learners to develop a perception of fractions.
Moving with Math Math Teachers Press Intervention Core Moving with Math online solutions are designed for targeted, topic specific interventions in math.
MyEdu Bain Capital Ventures, SnowMark Corp Post-Secondary MyEdu Corporation offers a suite of online products that address the college lifecycle from selecting a
college to earning a degree. The company’s products include Course and Professor Profiles to browse
course descriptions, grade distributions, official course evaluations, and student reviews; Schedule
Planner to get a Web view of a school’s course catalog integrated with course profiles and professor
reviews to evaluate options, balance workload, and build the schedule; and Education Network to
collaborate with advisors, professors, parents, and friends to share academic progress, make decisions,
and build an academic resume for the future.
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10/10/2012 MyEdu raises USD 20m from Bain Capital Ventures and University of Texas
MyLivePD Tutor.com PD Systems MyLivePD provides one-on-one, live, online coaching to teachers.
Mytonomy, Inc. NewSchools Venture Fund Mytonomy, Inc. operates as a video based social network which provides education solutions on college
and career topics.
NaMaYa STI Ventures NV LMS NaMaYa offers a complete cloud based LMS.
Nearpod N/A Provides Computer Programming Services, Specializing In Software Development Or Applications.
NetSupport N/A Educational Software The company also provides NetSupport School that enables teachers to instruct, monitor, and interact
with students; NetSupport Assist that ensures that teachers have the tools they need to monitor, engage,
and collaborate with their students
netTrekker N/A Teacher Tools netTrekker delivers digital K-12 content for teachers and students. Tools bring digital resources,
standards aligned content, and student productivity tools into the classroom.
New Century Education Lepercq Capital Management, Inc. Curriculum New Century Education Corporation provides instructional software. The company’s New Century
Corporation Learning System provides a program of computer managed instructions in the core curricula for students.
The New Century Learning System provides curriculum for individually appropriate instruction in the core
subject areas for students in elementary, middle, and high schools, as well as adult education programs;
provides teachers with a range of instructional models to implement the New Century curriculum and
assess the student; provides online correlations that link the New Century curriculum framework and
lessons to relevant standards; and offers test focused instruction software modules to individually prepare
students for critical state proficiency tests and the GED exam. The instructional management component
of the New Century Integrated Instructional System helps teachers in shaping the system to individual and
program requirements. It also offers software installation, technical support, and training and staff
BMO Capital Markets

development services to educators and schools in the United States.
New Classrooms Non-Profit Intervention Core New Classrooms (formerly School of One) is a hybrid educational model that leverages technology and
flexible scheduling, staffing, and space to meet individual student needs and accelerate learning.
January 2013

A member of BMO

Nimble Assessment Measured Progress, Inc. Testing & assessment Nimble Assessment Systems, Inc. develops computer-based test delivery system that provides a read
Systems, Inc. aloud accommodation. The company offers NimbleTools, a computer-based test administration system
that adapts the user interface to provide students with appropriate accessibility and accommodations. Its
NimbleTools also offers student access to computer-based test items, as well as links pre-recorded
human voice recordings to test items presented to students. The company was founded in 2005 and is
based in Newton, Massachusetts. As of September 9, 2010, Nimble Assessment Systems, Inc. operates
as a subsidiary of Measured Progress, Inc.
Nixty N/A LMS Nixty provides online, training, and continuing education courses and programs. It also allows schools to
Financial Group
create their own branded channel. Open courses are free to all, private courses charge the instructor a
flat fee plus a percentage of student tuition.
Noodle N/A IT Systems Noodle is a search platform for education. Categories covered include: Grad School, Vocational, High
School, Tutoring, and College. Noodle gives you personalized school recommendations based on your
personality and preferences, collects information, and lets users connect with people at the schools you
NovaNet Pearson plc (LSE:PSON) Courses NovaNET courseware delivers core high school curriculum. The learning management system includes
integrated assessments and the ability to customize lessons and track student performance.
Nunook Interactive Imagine K12 K-12 BrainNook is the next generation of learning games for kids under 10. BrainNook combines standards-
(BrainNook) aligned educational content and rich, massively multiplayer game environments to provide kids with a fun,
connected learning experience across platforms.
OdysseyWare Glynlyon, Inc. Courses OdysseyWare is a web-based learning management system that delivers standards-aligned core
curriculum through online courses.
Olympia Computing Tyler Technologies, Inc. (NYSE:TYL) SIS Olympia Computing Company, Inc., doing business as Schoolmaster Student Information Systems,
Company, Inc. provides student information systems. The company offers Schoolmaster, an integrated student
information software to manage and report student information used by educators. Its products include
Schoolmaster district edition, which provides schools with various functionalities needed for day-to-day
management of student data; K-12 school system, which includes various components to track the
differing requirements of elementary, middle, and high school students; secondary school system, which
includes various components to track the differing requirements of middle and high school students;
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elementary school system, which simplifies scheduling parent/teacher conferences, entering and reporting
of standardized testing, tracking vaccinations, and attendance reporting; and Web classroom, which
provides teachers access to their gradebooks to enter marks and attendance into Schoolmaster via the
OmniUpdate Zephyr Management, L.P. CMS OmniUpdate is the leading web content management system (CMS) provider for higher education.
OmniUpdate's enterprise web CMS, OU Campus, empowers institutions to effectively manage their web
presence and take advantage of the latest social media and mobile technologies. More than 550 college
and university websites are managed using OU Campus.
OneSchool 500 Startups, Learn Capital Venture Partners, Magnolia OneSchool Inc. offers mobile application for campus. It offers student body and faculty directory, local
Ventures Oy food shops, bus schedules and trackers, course directory, news, and chat.
Open English N/A Free English learning online software
OpenStudy Learn Capital Venture Partners Education Technology OpenStudy is a social learning network where students ask questions, give help, and connect with other
students studying the same things. At the Education Innovation Summit, OpenStudy announced
SmartScore, an individualized, data-based, quantifiable evaluation of "soft skills" of students. SmartScore
overcomes the limitations of traditional transcripts and measures Teamwork, Problem Solving, and
OutStart, Inc. Kenexa Corp. Instructional Management OutStart, Inc. provides formal and on-demand learning, knowledge sharing, and community/expert
collaboration solutions. It offers Evolution LCMS, a learning content management system for the
development, management, and blended delivery of learning content; ForceTen LCMS that allows
organizations to meet compliance regulations, as well as improves employee performance, sales
productivity, customer service, and enterprise profitability; Participate, which is an enterprise social
software platform that enables organizations to leverage the formal and informal knowledge; and Desktop
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Development Suite integrated suite that includes OutStart Trainer to rapidly build eLearning and OutStart
SoftSim. The company also provides OutStart Trainer that is a desktop authoring tool for e-learning;
SellingEdge.com, which empowers sales professionals by providing the sales knowledge;
January 2013

A member of BMO

Parchment, Inc AltoTech Ventures, LLC, GSV, Inc., Asset Management K-12, Post-Secondary Parchment Inc. operates a software-as-a-service platform for schools, colleges, universities, and
Arm, ICG Group, Inc. (NasdaqGS:ICGE), Novak Biddle individuals to exchange transcripts and other student records in the United States. It offers Docufide
Venture Partners, Pasadena Angels, Salmon River Sender, which electronically capturers, transforms, and manages education credentials for K-12 schools
Capital LLC, Tech Coast Angels Inc., The Raine Group and universities; and Docufide Receiver that delivers transcripts and other education credentials to
LLC, Investment arm colleges, universities, and other recipients in various formats, as well as integrates their application and
admissions workflow. The company was formerly known as Docufide, Inc. and changed its name to
PBS Teacherline N/A PD Systems PBS TeacherLine is the premiere online professional development resource delivering courses online for
PreK-12 teachers.
Financial Group
PD360 (School N/A PD Systems Online, job embedded professional development for teachers and educators.
Improvement Network)
Pearson Education Inc. PSON (LSE) Core / Supplemental Pearson Education, Inc. publishes educational, technical, and professional materials. It publishes
Curriculum materials in computing, economics, finance, mathematics, statistics, English, history, philosophy, political
science, religion, education, psychology, sociology, communication, social work, anthropology, criminal
justice disciplines, anatomy, biology, chemistry, health and kinesiology, and microbiology, as well as offers
professional materials in the areas of technology. The company also offers professional licensing and
certification programs; and skills assessments, career counseling, and human resource consulting
services. It also offers e-learning solutions in the areas of business and financial to various industries,
ranging from banking to biotech, as well as provides data management and assessment services. The
company was founded in 1998 and is headquartered in Upper Saddle River, New Jersey. Pearson
Education, Inc. operates as a subsidiary of Pearson plc.
Pearson Educational Pearson plc (LSE:PSON) Assessment Pearson Educational Measurement, Inc. provides educational assessment products, services, and
Measurement solutions for students and teachers, parents, and caregivers. It offers PEMSolutions, a Pearson
educational measurement solutions that provide a suite of assessment services; PASeries, a Progress
Assessment Series products to offer formative assessments; Perspective, which provides assessment
reports to student improvement; and EDWARD, a statewide assessment-based education data
management and reporting system that brings assessment, reporting, analysis, and data management.
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The company also provides psychometric services, which include equating and scaling analyses, review
and approval of items and analysis of test data, equating test forms, and authoring technical reports and
Piazza Technologies, Inc. Bessemer Venture Partners, Felicis Ventures LLC, Kapor Education Technology Piazza Technologies, Inc. operates an online collaboration and social learning network platform for
Capital, Sequoia Capital, SV Angel students and teachers to communicate about problems in real time.
Pinnacle GlobalScholar SIS Pinnacle SIS is a comprehensive student information tracking solution that captures a wide spectrum of
administrative and instructional student data. It reduces costs, redundancies and increases opportunities
for individualized teaching.
Edmentum (fka PLATO Thoma Bravo, LLC Courses Edmentum provides online education solutions for kindergarten through adult learners in the United
Learning, Inc.) States and Canada. It offers online courses for K–adult learners that include reading, writing,
mathematics, science, social studies, and life and job skills; and standards-based online assessments
that identify student needs and prescribe a course of study within its interactive instruction for elementary,
secondary, or post-secondary learners. The company provides extended learning, enrichment programs,
online courses, placement, test preparation, developmental education, educator preparation, workforce
readiness, adult basic education, remediation, response-to-intervention, credit recovery, and diagnostic
assessment solutions; and learning curriculum and assessments that are focused on student transitions
from elementary to middle school, middle school to high school, and beyond high school.
Power My Learning CFY (non-profit) Teacher Tools PowerMyLearning.com is designed to help students, teachers, and parents find and use the best digital
learning activities available online, including games, simulations, and videos.
PowerSchool Pearson plc (LSE:PSON) SIS PowerSchool, Inc. provides Web-based student information system in the United States. It serves
students, parents, teachers, and administrators. The company was founded in 1997 and is based in
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Folsom, California. As of May 24, 2006, PowerSchool, Inc. is a subsidiary of Pearson Education, Inc.
January 2013
A member of BMO

Prazas N/A Collaboration Prazas is a software solutions company with technology to enable real-time collaboration to meet a variety
of needs. The key feature is Prazas Live which allows students to complete their work online.
PrepMe Naviance Inc. Test Prep PrepMe offers customized test preparation through a web-based online course platform.
Presence Learning Catamount Ventures Management LLC, NewSchools Specialized Core Presence Learning (formerly known as Presence Telecare) provides online speech therapy, or
Venture Fund, Investment Arm, Ulu Ventures “telepractice,” to schools and districts. Using web-based video-conferencing, students engage in a live
interaction with a licensed speech language pathologist (SLP) on a custom web platform.
Princeton Review REVU (OTCPK) Curriculum and Learning The Princeton Review, Inc. provides classroom-based, print, and online products and services for
students, parents, educators, and educational institutions. It operates in three divisions: Test Preparation
Financial Group
Services, Supplemental Education Services, and K-12 Services. The Test Preparation Services division
provides classroom-based, as well as online test preparation courses. This division offers private tutoring
program, which provides counseling and tutoring services for various admissions tests, principally
standardized admission tests in the United States; online courses that enable students to take tests, make
up classes, or do extra work; and test preparation services to schools. The Supplemental Education
Services division provides tutoring and ‘No Child Left Behind’ supplemental educational services. The K-
12 Services division offers customized and off-the-shelf solutions that include formative and
benchmarking assessments, intervention programs, professional development, and materials to support
Professional Development Elsevier B.V. Core / Supplemental Professional Development Software, Inc. develops educational software products. It produces Software
Software, Inc. Curriculum for Nurses, nursing student education software and Teach & Track, creation and administration of
courses. The company was founded in 1988 and is based in Chapel Hill, North Carolina. As of April 7,
2009, Professional Development Software, Inc. operates as a subsidiary of Elsevier B.V.
Promethean World Plc PRW (LSE) Assessment Systems Promethean Limited provides interactive classrooms solutions that enable teachers to engage, educate,
assess, and motivate learners. It offers Activclassroom solutions, which are helping educators teach and
students learn with the interactive whiteboard technology; Activstudio, a software platform for secondary
teaching; and Activprimary, which is a whiteboard software for use in primary schools and kindergarten.
The company also provides wireless hand-held learner response systems that permit instantaneous
assessment of pupils' comprehension of lessons; personal hand-held Activote response units, which
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provide instant polling and analysis to promote learning and teacher productivity; and curriculum software,
pads, projectors, screens, overlays, pens, rear projections, and maps. In addition, it offers training and
support, as well as hosting to the online interactive whiteboard community, prometheanplanet.com.
Prometric ETS Curriculum and Learning Prometric, Inc. provides technology-enabled testing and assessment services to customers in academic,
professional, government, corporate, and information technology markets. Its testing services include
development services, such as job analysis, item development, test design and construction, and
psychometric analysis; delivery services, including test publishing, test administration, scheduling and
registration, system management, and results processing; and data services, such as data reporting,
integration, storage, and administration. The company also offers continuing education services, such as
records management, certification testing, and administrative services; license processing; and voucher
services, as well as pre-licensing/continuing education services, including licensee and provider services.
ProQuest Cambridge Information Group, Inc. Core / Supplemental ProQuest, LLC collects, organizes, and publishes information. It offers information services in electronic,
Curriculum microform, and print-on-demand formats to university libraries, two-year institutions, government libraries,
corporate and special libraries, public libraries, K-12 educators, librarians, researchers, administrators,
students, and hospitals and medical school libraries. The company offers information services in the fields
of arts, literature, social science, science, technology, and medicine. It serves customers in the United
States, Canada, and internationally. ProQuest, LLC was formerly known as ProQuest-CSA, LLC.
Psychological Software Pearson plc (LSE:PSON) Specialized Core Psychological Software Solutions provides web-based positive behavior management software,
Solutions frameworks for teachers and administrators and a data management system to implement school-wide
Questar Assessment QUSA (OTCPK) Assessment Questar Assessment, Inc. provides custom and proprietary scoring, scanning, and reporting services to K-
12 education market. It develops and delivers end-to-end testing solution and custom test materials, or a
BMO Capital Markets

range of assessment services to the education community.
January 2013
A member of BMO

Questionmark N/A Assessment Questionmark's technologies and services enable organizations to measure knowledge, skills, and
attitudes securely for certification, regulatory compliance and successful learning outcomes.
Quipper Limited Atomico Investment Holdings Limited, Benesse Holdings, Quipper Limited provides educational apps.
Inc., Globis Capital Partners
Quizlet N/A Games Quizlet is a site to find and create sets of flashcards and then study content through learning games
based off those flashcards.
Qwizdom N/A Assessment Systems Qwizdom provides interactive data-gathering solutions for thousands of corporations, schools, and
government agencies around the world. Striving to make learning both effective and engaging, Qwizdom
Financial Group
offers an advanced radio-frequency audience response technology (patents pending) and a complete
software learning system. Founded in 1984, Qwizdom has offices in the Seattle area, Cleveland, and the
United Kingdom.
Read 180 Scholastic (SCHL) Intervention Core READ 180 is a comprehensive system of curriculum, instruction, assessment and professional
development proven to raise reading achievement for struggling reader
Reality Based Learning The McGraw-Hill Companies, Inc. (NYSE:MHP) Curriculum and Learning As per the transaction announced on April 15, 2002, Reality Based Learning Co. was acquired by McGraw
Co. Hill Education, Inc. Reality Based Learning Co. develops Internet-based reading software for educators,
administrators, and parents. It offers elementary education system that delivers standards-correlated
reading instruction, monitors student progress, and reports student achievement. This system also allows
educators to modify each student's personal curriculum based on classroom observation, or to align it with
current classroom instruction; and delivers early literacy activities and assessments over the Internet to
children. The company was founded in 1997 and is based in Redmond, Washington.
Reasoning Mind Non-Profit Intervention Core Reasoning Mind's mission is to provide a first-rate math education for every child. They are a non-profit
organization that partners with schools. Student instruction is a hybrid of face-to-face and online
curriculum complemented by professional development for teachers..
Regent Education, Inc. Chrysalis Ventures, Inc., Edison Venture Fund, Yearling Educational Software Regent Education provides a SaaS solution that enables private education institutions and
Management LLC colleges—specifically those with non-standard or non-term offerings—to quickly and effectively automate
financial aid processes
Remilon N/A Educational Publishing Remilon is a web media company making education accessible to everyone through technology
innovation. The company is the market leader in creating original content to help prospective students
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research academic and career-training programs. The company publishes over 2,000 original articles and
videos each month to a small family of Remilon-owned sites, including the flagship site, Education-
Portal.com. This large repository of Web content helps The company attract over 4 million monthly
organic search visitors who are looking for information to help them achieve their academic and career
remind101 Ulu Ventures Teacher Tools remind101, Inc. operates a social network for teachers which enable them to communicate with students
and parents via text messages and email.
Renaissance Learning Permira Supplementary Content Renaissance Learning, Inc. provides computer-based assessment and periodic progress monitoring
technology for pre-kindergarten through senior high schools and districts in North America. Its educational
software products cover a range of subject areas, including reading, early literacy, mathematics, writing,
vocabulary, and language acquisition. The company’s principal product includes Accelerated Reader,
which provides literature-based reading practice and support for instruction. Its reading products include
STAR Reading, STAR Early Literacy, and Read Now Power Up!; math products comprise Accelerated
Math, STAR Math, and Math Facts in a Flash; and writing and keyboarding products consist of The
AlphaSmart laptops and related software. The company also addresses language acquisition for English
language learners with its English in a Flash software. In addition, Renaissance Learning sells 2Know!
response system, which allows classroom participation and provides feedback to instructors in
Renzulli Learning CompassLearning, Inc. LMS Renzulli Learning offers differentiated learning support. The software first diagnoses a students ability,
then designs an appropriate lesson, groups them with similar students, and helps create a success plan.
Respondus N/A Assessment Systems Respondus, Inc. develops testing, survey, and game applications for the e-learning market. It offers
Respondus 3.5, an application for creating and managing exams that can be printed to paper or published
directly; LockDown Browser, a custom browser that provides a secure testing environment; StudyMate
Class Server for blackboard courses where teachers and students create study materials in a Web-based
BMO Capital Markets

and collaborative environment; and StudyMate Author, an authoring tool that lets instructors to create
flash-based activities and games using templates.
January 2013

A member of BMO

Rethink Autism Rethink Education, Seavest Capital Partners Specialized Core Rethink autism is an online service that provides information to professionals and parents to ensure that
every child on the autism spectrum has access to effective and affordable, research-based treatment and
tools for Applied Behavior Analysis interventions.
Revolution Prep Kennet Partners Limited Test Prep Revolution Prep is an education software and services provider that supports students on SAT, ACT and
other high stakes test preparation through web-based adaptive learning software.
Ripple Effects N/A Specialized Core Ripple Effects provides an integrated suite of software, web-based resources, print materials and live
training aimed at children, teens, and the adults who work with them. They aim to promote the social-
emotional competencies and skills that lead to success in school and life.
Financial Group
RJM Systems N/A RJM Systems, Inc. develops information management systems for small to medium size colleges and
universities. The company offers its products under the brand name SONISWEB. SONISWEB provides
schools with integrated services for admissions, registration, grading, billing, course management and
other administrative functions. SONISWEB provides online access for students, prospective students and
applicants, alumni, and faculty.
Rocket Learning Miradero Capital Partners, Inc., Puerto Rico Tutoring & Test Prep Rocket Learning, Inc. provides supplemental educational services. It offers academic programs in core
Entrepreneurs Fund, L.P. Services subjects that are customized to each student's learning needs and skill level.
Rosetta Stone RST (NYSE) Specialized Core Rosetta Stone provides interactive solutions to promote language learning in more than 30 languages by
replicating and activating an immersion method of learning.
Pathbrite ACT, Inc., Rethink Autism, Inc., Rethink Education Pathbrite, Inc. delivers online solutions that help students and learners of all ages to collect, track, and
showcase their achievements, and recommend pathways for success. It documents, analyzes, and maps
individual achievements of various kinds against individuals’ goals and those of their peers, which is called
a knowledge graph. The company provides school admission officers and employers with its portfolio
platform to get a holistic view of candidates, and to evaluate their readiness for and organizational fit to
the opportunities. It provides Web portfolios for instructors, administrators, and career readiness
counselors to evaluate and prepare students for a life after school.
rSmart ASAHI Net, Inc. (TSE:3834), GSV, Inc., Asset Backoffice The r-smart Group, Inc. provides open source solutions for the education market. The company
Management Arm, OnCorps Capital packages, certifies, deploys, and supports a suite of enterprise financial, and collaboration and learning
applications for colleges, universities, and institutions. It offers rSmart Kuali Financial System, a financial
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accounting system for higher education that includes a chart of accounts, general ledger, purchasing and
accounts payable, labor distribution, contracts and grants, A/R, budget construction, capital asset
management, endowment management, reports and business intelligence, and enterprise workflow.
SABA Software SABA (NasdaqGM) Educational Software Saba Software, Inc. provides a software platform for enterprise learning, collaboration, performance, and
talent management. It provides the Saba Enterprise Suite that comprises Saba learning suite, an
enterprise learning and learning content management solution; Saba performance suite that enables
organizations to align people’s daily activities with organizational goals; and Saba talent suite, which
enables organizations to reduce risk by planning for successions, as well as identifying, developing,
tracking, and managing future leaders. The Saba Enterprise Suite also includes Saba Business
Foundation that delivers a common view of employee skills, interests, and experience; and Saba
Collaboration that facilitates enabled learning and knowledge transfer between individuals and subject
matter experts in informal settings or in conjunction with learning events, as well as allows the
organization to build and manage communities of practice, and create repositories of institutional
Sakai U of M, IU, MIT, Stanford LMS Sakai is a community of academic institutions, commercial organizations and individuals who work
together to develop a common Collaboration and Learning Environment (CLE). The Sakai CLE is a free,
community source, educational software platform distributed under the Educational Community License (a
type of open source license). The Sakai CLE is used for teaching, research and collaboration. Systems of
this type are also known as Course Management Systems (CMS), Learning Management Systems (LMS),
or Virtual Learning Environments (VLE).
SAS Curriculum Pathways SAS Specialized Core SAS provides interactive standards based resources for free.
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January 2013
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Scantron Harland Clarke Holdings Corp. Assessment Systems Scantron Corporation provides assessment and survey solutions to help education and commercial
organizations in the United States. It offers Achievement Series, a Web-based district wide assessment
solution that allows K-12 educators to develop and administer online and paper-based tests, capture
immediate results, and produce standards-based reports; eListen, a survey software that creates,
deploys, collects, and analyzes various surveys; and ParSystem, a software module that allows to create,
administer, and score tests on paper via networks or over the Internet. The company also offers Class
Climate that enables automated and high-volume evaluations of courses, study programs, and
departments; Performance Series, a Web based computer-adaptive test that pinpoints the proficiency
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level of students; and utility software application that captures, translates, and organizes data, as well as
offers test scoring machine and optical mark read scanners.
Scholastic Corporation SCHL (NasdaqGS) Educational Publishing Scholastic Corporation, together with its subsidiaries, engages in the publishing and distribution of
children’s books, as well as the development of educational technology products in the United States and
internationally. It creates educational and entertaining materials and products, including children's books,
magazines, technology-based products, teacher materials, television programming, film, videos, and toys
for use in school and at home. In addition, the company offers media and electronic products and
programs comprising children’s television programming, DVDs, software, feature films, interactive and
audio products, promotional activities, and non-book merchandise, as well as provides advertising.
School Loop MeriTech Capital Partners, New York Angels, Inc., Collaboration School Loop is an LMS for teams that keeps students in school and on track by creating a network for
RoseTech Ventures, LLC individual students consisting of teachers, coaches, parent, and mentors. The loop enables everyone to
communicate and stay up to date regarding the students progress and needed interventions.
School Specialty SCHS (NasdaqGS) Supplementary Content School Specialty, Inc., together with its subsidiaries, provides supplemental educational products and
equipment to the pre-kindergarten through twelfth grade education market primarily in the United States
and Canada. It operates in two segments, Specialty Products and Essentials Products. The Specialty
Products segment offers value-added, curriculum, and age-focused products, such as customized
academic agendas, hands-on science curriculums, research-based reading intervention materials, arts
and crafts materials, and physical education and special needs equipment. This segment sells its
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products to teachers and curriculum specialists under the Premier Agendas, Sportime, Childcraft, Delta
Education, FOSS, CPO Science, Frey Scientific, Sax Arts & Crafts, School Specialty Publishing,
Educator’s Publishing Service, SPARK, and Califone brand names.
School Town N/A Teacher Tools SchoolTown is a blended learning platform for sharing resources, leveraging experts, professional
development, connecting members, differentiating instruction, and teaching efficiency.
SchoolCity N/A Assessment Systems SchoolCity offers assessment, reporting, and improvement services.
SchoolDude N/A Backoffice SchoolDude.com, Inc. provides on-demand operations management software to schools, colleges, and
universities. It offers education software for facility, technology, and business operations.
schoolFeed, Inc. Memory Lane, Inc. schoolFeed, Inc. operates a free classmate network which connects with Facebook.
SchoolNet Pearson plc (LSE:PSON) Data Warehousing SchoolNet, Inc. provides data-driven decision-making and Web-based products and solutions for K12
school districts. It offers instructional management suite, providing users with data, reports, tools, and
content to assess student and school performances in Atlanta, Chicago, Philadelphia, and Washington,
District of Columbia. Products include Account, a tool to measure performance and provide a path to
achieving school performance goals; Align, a tool to deploy and manage curriculum and enhance
instructional practice using data; Assess, a tool to implement formative assessments and propel student
performance; Analyze, a business intelligence solution to enable data analysis; Outreach, a tool to enable
Web-based communication and collaboration for the education community; PD Planner, a tool to manage
and track district-wide professional development; Advance, a tool to assess organizational capacity and
manage succession, replacement, and development of employees; Skill Builder, a tool to enable district-
wide and competency-based human capital management.
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January 2013
A member of BMO

Schoology Meakem Becker Venture Capital, FirstMark Capital, Social Learning Schoology is an easy-to-use, easy-to-implement online learning, classroom management, and social
Cempaka Schools, Kindler Capital networking platform that enhances student engagement and improves learning through better
communication, collaboration, and increased access to curriculum and supplemental content.
SchoolSuccess.net Pearson plc (LSE:PSON) Online Learning SchoolSuccess.net offers web-based applications, products, services, and educational solutions for
families and teachers of kids up to age eight. The company site includes customized content, activities,
online courses, simulations, cummunities and educational products. As of June 2001, SchoolSuccess.net
is a subsidiary of Pearson Education Inc.
SchoolWires Kennet Partners Limited, Rosetta Capital Corporation Collaboration Provides community-based communication and engagement solutions to schools and districts.
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Schoolyard, Inc. inRESONANCE, Inc. LMS Schoolyard, Inc. develops Web-based solutions and tools for independent schools in the United States
and internationally. Its products include SitePages, a content management system, which comprise page
building wizard, calendar software, and various options for highlighting items; and Community Tools
package that provides secure online giving, e-commerce for the school bookstore, threaded online
discussions, and databases and networking features. The company’s products also comprise Intranet
Suite, which addresses issues of teaching and learning as a virtual extension of the classroom, facilitating
online homework help, quizzes, and featuring personalized home pages coordinating each student and
teacher's respective schedules, messages, and assignments. It serves individual schools and related
independent school organizations. Schoolyard was formerly known as Daedalus Design, Inc. and changed
its name to Schoolyard, Inc. in December 1998.
SchoolZilla Aspire Public Schools (Non-Profit) Reporting Systems SchoolZilla provides a suite of tools to visualizae, explore, and share data and support data-driven
decision making.
Scientific Learning SCIL (OTCPK) Educational Publishing Scientific Learning Corporation develops and sells educational software that accelerates learning by
improving the processing efficiency of the brain. It offers its products primarily as a reading intervention
solution, to be used as an intervention or remedial supplement to existing curriculum materials for
struggling, special education, and English language learners, at both the elementary and secondary
school levels to improve reading and learning. Its Fast ForWord Language series for elementary learners
and the Literacy series for adolescent learners builds foundational reading and language skills to help
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districts move below grade level learners to be successful learners in the general classroom. The Reading
Series exercises focus on phonemic awareness, phonics and decoding, spelling, vocabulary, fluency, and
comprehension. It also offers Progress Tracker, an Internet-based data analysis and reporting tool, which
analyzes students’ learning results to provide diagnostic and prescriptive intervention information, and
allows educators to track and report their students’ learning progress.
ShareStream N/A CMS ShareStream, LLC provides media platforms for higher education and distance learning. Its media
management and delivery platform allows educational institutions to store, manage, and preserve all of
their licensed and institutionally-generated media content, including video, audio, lectures, podcasts, and
images in a centralized system and deliver content into various learning management systems.
Shmoop N/A Test Prep Shmoop provides digital curriculum and test preparation resources and teaching materials.
Showmyhomework Teacher Centric Ltd. Teacher Tools Show My Homework is an online application that enables school teachers to post homework, display it in
a simple calendar form, and asses it online.
Silicon Chalk Inc. Blackboard (Providence Equity Partners) Online Learning Silicon Chalk, Inc. provides software that enables teachers to beam classroom lectures and supplemental
information to the personal computers of students. It allows distance students to participate and create an
interactive recording of learning activities. The company is based in Vancouver, Canada. As of August 30,
2005, Silicon Chalk Inc. operates as a subsidiary of Horizon Wimba, Inc.
Skillsoft Advent International Corporation, Bain Capital Private Training SkillSoft Public Limited Company provides e-learning and performance support solutions for enterprises,
Equity, Berkshire Partners, LLC, CNL Fund Advisors government, education, and small and medium-sized businesses worldwide. Its products include
Company, KKR Asset Management, LLC, Prospect SkillChoice Multi-Modal Learning Solutions that provide resources to support formal training and informal
Capital Corporation (NasdaqGS:PSEC) performance support needs; SkillPort, a learning management platform that enables organizations to
manage their e-learning programs; KnowledgeCenters, which are prepackaged learning portals that allow
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learners instant access to content; SkillSoft Dialogue, a virtual classroom platform designed for the
assembly and delivery of live and on-demand learning sessions; Business Impact Series titles, which are
audio-driven dramatizations of workplace business problems and related solutions; and Challenge Series
January 2013
titles that are interactive case studies focused on content analysis, problem solving, and decision making.
A member of BMO

Sky Learning.com LMS Sky is a digital learning environment that helps teachers find resources that are standards-aligned,
relevant to what they're teaching, and easy to assign to students.
Smart Sparrow OneVentures Pty Ltd, Uniseed Pty Limited Adaptive e-learning platform empowers teachers to create rich, interactive and adaptive lesson
Smart Technologies Inc. SMA (TSX) Online Learning SMART Technologies Inc. designs, develops, and sells interactive technology products and solutions
worldwide. The company offers a range of interactive whiteboards and complementary products, as well
as interactive touch-enabled display components. It provides SMART education platform, which can
change the way teachers teach and students learn and interact; and SMART Board interactive
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whiteboards that include a digital whiteboard. SMART Technologies also sells various additional
interactive hardware products for the classroom and meeting room, including SMART Response, SMART
Podium, SMART Table, SMART Document Camera, SMART Slate, SMART Board Interactive Display,
SMART Audio, SMART Hub, PC Touch (1900 series), Display Touch (2100 series), and Overlay Touch
Smarterer Bantam Group Inc., Investment Arm, Boston Seed Evaluates individuals on digital, social, and technical skills and uses a crowd sourced test design
Capital LLC, Google Ventures, Rethink Education, True
Ventures
SMARTHINKING Pearson plc (LSE:PSON) Tutoring Online Tutoring and writing services that help students succeed. Includes live online tutoring, online
writing lab, essay grading assistance, custom academic support programs, hosted virtual learning center
technology, and support for ESL students
Smartroom N/A Assessment Systems Smartroom Learning Solutions, Inc. provides instructional technologies and services to the education
marketplace. With over 25 years of industry experience, our staff can help organizations evaluate their
educational goals and develop plans to attain them.
SmartyAnts N/A A virtual world that helps improve reading scores for children
Socrative N/A Assessment Systems Socrative is a smart student response system that empowers teachers to engage their classrooms
through a series of educational exercises and games via smartphones, laptops, and tablets.
SoftChalk N/A Classroom Devices Softchalk, LLC provides e-Learning software for education and business institutions in the United States
and internationally. It offers SoftChalk, a Web lesson editor that lets clients to create interactive Web
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lessons for their e-learning and smart classrooms in K-12, higher education, and corporate training; and
ScoreCenter, a solution for tracking student score data.
Software Technology, Inc. SCP Partners, Selway Capital SIS Software Technology, Inc. provides education data management solutions to the K-12 market in the
United States. The company’s solutions include student information systems, assessment platforms,
special education tracking, and professional development management. Its integrated suite of products
provides attendance, scheduling, special education, assessment, discipline, grade reporting, professional
development, fund accounting, health, and parent/teacher communications solutions. The company was
founded in 1982 and is headquartered in Mobile, Alabama. It has regional offices in Westlake Village,
California; Tremont, Illinois; Summer Shade, Kentucky; and Vienna, Missouri.
SoftwareSecure N/A Online Learning Software Secure Inc. develops and delivers computer-based testing solutions for distance learning
programs of academic institutions and certification organizations in the world.
Sokikom N/A Games Sokikom is an online site with single-player adaptive mathematics games and multi-player social learning
mathematics games.
SonisWeb N/A Educational Software RJM Systems, Inc. provides state-of-the-art systems to meet a wide range of the needs of small to
medium size colleges and universities. The Company's software provides schools with integrated services
for admissions, registration, grading, billing, course management and other administrative functions. The
Company also provides online access for students, prospective students and applicants, alumni, and
faculty. SONISWEB is the Company's fully web-based system
Sophia Capella Education (CPLA: NasdaqGS) Social Learning Sophia offers a variety of social learning packets for sciences, english, math, humanities, social science,
and learning strategies.
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January 2013
A member of BMO

Spectrum K12 School Scantron Corporation Data Analytics Spectrum K12 School Solutions, Inc. provides response to intervention (RTI) and special education IEP
Solutions, Inc. software for K-12 student population in the United States. It offers Encore, a special education data
management system, which provides a Web-based solution to manage the individualized learning
process for various students receiving special services, including special education, 504, limited English
proficiency (LEP/ESL), and pre-referral response to intervention (RTI) programs. The company also
provides EXCEED/RTI that provides an integrated tool to manage and measure the day-to-day activities,
meetings, research based interventions, and outcomes used to help various students achieve academic
success. In addition, it offers services, such as implementation, needs analysis, application hosting, and
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grant writing. Spectrum K12 School Solutions, Inc. was formerly known as 4GL School Solutions, Inc. The
company was founded in 1996 and is headquartered in Towson, Maryland. As of July 22, 2010, Spectrum
K12 School Solutions, Inc. operates as a subsidiary of Scantron Corporation.
Spiral Universe SIS Spiral Universe is an integrated software suite used by schools to increase efficiency, reduce costs, and
improve their management and administration.
SRA/Mc-Graw Hill The McGraw-Hill Companies, Inc. (NYSE:MHP) Professional Development SRA/McGraw-Hill is the top provider of specialized research-based educational programs and
Services professional development for the elementary market. Leading programs include SRA Imagine It! reading
program, Direct Instruction, SRA Number Worlds, additional core and supplemental programs.
Starfish Retention Arcady Bay Partners, Novak Biddle Venture Partners Retention Starfish Retention Solutions is a leading provider of student success solutions Offering a collection of
Solutions software products that enable academic institutions to engage, motivate and graduate more students. Our
solutions help institutions identify at-risk students, promote engagement with instructors, manage tutoring
services, improve academic advising, and facilitate relationships with mentors.
STEP University of Chicago (non-profit) Assessment Systems STEP is a developmental literacy assessment, instructional tool, and data management system designed
for K-3 students.
StraighterLine Chrysalis Ventures, City Light Capital, FirstMark Capital, Online School Operators StraighterLine, Inc. provides online college courses and distance learning courses from accredited
Longworth Venture Partners, New Vantage Group, colleges and universities. The company offers various courses, such as introductory algebra,
Rethink Education developmental writing, mathematics, business statistics, English composition, economics, and
accounting. It also provides a tuition assistance program as a benefit for companies to provide to
employees interested in earning their college degree. The company was incorporated in 2009 and is
based in Baltimore Maryland
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StudyIsland Edmentum (fka PLATO Learning, Inc.) Intervention Core StudyIsland provides web-based, standards-aligned assessment, instruction, and test preparation
software.
Sublime Learning N/A PD Systems Professional development aims to inform and empower educators to teach effectively with technology.
Success for All Non-Profit Intervention Core The Success for All Foundation (SFAF) offers a whole-school improvement model as well as online
reading intervention program.
SuccessFactors SAP (SAP) HR Systems Provides personnel and district management software for schools including recruitment and performance
management.
SuccessMaker Pearson plc (LSE:PSON) Courses SuccessMaker offers supplemental instructional software in reading and math designed to support core
curriculum and personalize learning sequences for students.
Sumtotal Vista Equity Partners Educational Software SumTotal Systems, Inc. develops, markets, distributes, and supports learning, performance, and talent
management software products and on-demand subscriptions. It offers SumTotal Systems Enterprise
Suite, an integrated suite of software applications that combines learning management, performance
management, compensation management, and learning content management. The company also
provides ToolBook Instructor, a multimedia development system for creating applications and simulations;
ToolBook Assistant, an authoring product that automates the process of developing learning applications;
and Phoenix solutions that offer authoring, administration, presentation, and reporting.
SunGard Higher Ellucian, Inc. SIS SunGard Higher Education provides solutions, strategic consulting, and technology management to
Education colleges and universities around the world. More than 1,600 institutions, and the learners they serve, rely
on our broad portfolio of products and services to fulfill the possibility and promise of education.
SynapticMash, LLC Promethean World Plc (LSE:PRW) LMS SynapticMash, LLC offers learning management systems. It offers MashQube ecosystem that provides
collaboration tools for students and educators; LearningQube that empowers schools with an environment
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for creative expression, curriculum management, data collection, and intelligent research results through
virtual classrooms, assessments, gradebooks, and attendance record-keeping; and infrastructure
services. The company serves students, teachers, parents, and administrators. SynapticMash, LLC was
January 2013
founded in 2007 and is based in Seattle, Washington. As of July 26, 2010, SynapticMash, LLC operates
as a subsidiary of Promethean World Plc.
A member of BMO

Tap to Learn ENIAC Ventures, Y Combinator Educational apps for children including AstroMath, Grammar App and Math Games
TeacherPayTeachers N/A Teacher Tools TeachersPayTeachers is an online marketplace where teachers buy and sell original downloadable
educational materials, hard goods and used educational resources.
Teachscape ABS Capital Partners, Arcadia Partners, Intel Capital, PD Systems Teachscape, Inc. provides technology-enabled educational consulting services for K-12 teachers, school
McGraw-Hill Ventures, Inc., NewSchools Venture Fund, principals, and other instructional leaders. The company provides Teachscape XL, a Web-based
Investment Arm, Quad Partners, Sprout Group technology tool that combines course content, learner management, discussion centers, and resource
libraries for professional learning online; Classroom Walkthrough technology allows for data collection on
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a handheld device; and Online Professional Learning Resources that provide access to content modules
reflecting research-based practices. It also offers title one services, English language learner services,
language acquisition centers, mathematics services, effective strategies services, literacy services,
response to intervention services, early childhood services, new teacher support services, and elementary
science services.
TeamDynamixHE N/A Education Technology TeamDynamixHE provides the only project and portfolio management solutions specifically tailored to
accommodate the needs of Higher Education. With a simple yet powerful interface, TeamDynamixHE
solutions enable colleges and universities to prioritize efforts, adapt to change, manage resources and
meet commitments on time and on budget.
TechRadium N/A Commerce Management Techradium, Inc. provides mass notification and emergency alerting systems to educational institutions,
Notification Systems utility companies, government entities, military organizations, non-profit associations, and commercial
businesses in the United States and internationally. It offers Immediate Response Information System, a
hosted service that broadcasts notifications through multiple forms of communications to people. The
company was founded in 2001 and is based in Sugar Land, Texas.
TenMarks Birchmere Ventures, Catamount Ventures Management Intervention Core TenMarks Education, Inc. provides personalized online math practice and enrichment programs for third
through tenth graders using a structured approach of practice, on-demand hints, video instructions and
real time results.
TetraData Follett Software Data Warehousing TetraData Corporation provides warehousing and analytic software solutions for the K-12 districts to
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capture, integrate, and store data from administrative and educational systems. Its products include
TetraData Analytical Warehouse and Central Data Store, strategic data platforms designed to maintain
information required to support data-driven decision making in k-12 district; TetraData Warehouse that
integrates and stores education data from multiple sources; Central Data Store, which receives data in a
format from diverse education source systems, and stores the current and historic versions of data, as
well as passes the information to other transactional, analytic, and reporting systems; TetraData DASH
that gives stakeholders from the classroom to the board room a way to monitor a school system's health;
TetraData Analyzer, a data warehouse mining and analysis tool, which is designed to provide access to
various information in the TetraData warehouse; and Data On Demand that enables the clients to move
data on a scheduled basis into existing data warehouses.
The Administrative Pearson plc (LSE:PSON) SIS The Administrative Assistants Ltd. designs, develops, delivers, and supports student information systems
Assistants Ltd. for K12 school districts in Canada. It offers eSIS, an enterprise Web based education data management
solution that supports the K-12 industry in managing basic student information, complex reports, and data-
driven decision making; eSIS Payments, an electronic payments solution, which allows district to take
online payments; and eSIS Wireless that enables administrators and teachers to access eSIS teacher
assistant module from various wireless handheld devices, such as cell phones and wireless devices. The
company also provides project management, training and certification, data, and application specialists
and support services. It has strategic partnerships with Oracle; Sun; My Payment Network; SynreVoice;
VersiFit; IBM Global Business Services; TELUS; and ConnectEDU, Inc. The Administrative Assistants
Ltd. was founded in 1986 and is based in Burlington, Canada. As of November 16, 2010, The
Administrative Assistants Ltd. operates as a subsidiary of Pearson plc.
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The American Academy Austin Ventures, Meyer Ventures, New Markets Venture Online Instruction The American Academy is an online high school and educational services provider. Through a web-based
Partners, Peterson Ventures, Signal Peak Ventures learning management system, they provide online courses to brick and mortar schools looking for
January 2013
solutions for dropout and credit recovery.

A member of BMO

Think Through Math N/A Intervention Core Apangea Learning is personalized, online math solution that differentiates instruction for students by
combining interactive content with individual access to certified teachers through tutoring technology.
ThinkWell CenterPoint Ventures, LBJ Holding Co., Rho Capital Courses ThinkWell offers video-rich, online content and courses to support Advanced Placement instruction.
Partners, Inc.
Time to Know N/A Intervention Core The Time To Know integrated learning management system and platform includes core curriculum and
instructional tools that customize content for students.
Toolwire, Inc. Angel Investors, Horizon Ventures, Navigation Capital Supplementary Content Toolwire, Inc. provides experiential learning solutions for classroom and e-Learning training programs. It
Partners, Inc., Novus Ventures, Outlook Ventures, Sigma offers LiveLabs for Cisco and Microsoft is a hosted training solution that allows students to build skills
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Partners through hands-on exercises with software and networking environments from the convenience of an
Internet-connected Web browser; and LiveLabs for Developers, a hosted training solution that allows
organizations to grow programming expertise through hands-on exercises that build production-scale
solutions. The company also provides Enterprise LiveLabs, a hosted training solution, which automates
the delivery of lab environments for classroom training and e-Learning. In addition, it provides services,
such as customer support; solution installation and implementation, e-learning program audit and analysis
whitepaper, designing blended training programs, designing targeted marketing campaigns to drive
usage, integrating lab-based initiatives into existing training programs, and LMS and enterprise application
integration analysis and execution; and education services.
Top Hat Monocle Emergence Capital Partners, Golden Venture Partners, Classroom Devices Top Hat Monocle’s modern web-based classroom response and online homework tool that runs off any
iNovia Capital, MaRs Discovery District, SoftTech VC, mobile devices students already own.
Version One ventures
TopSchool, Inc Access Venture Partners, Alsop Louie Partners, Online Learning TopSchool, Inc. provides administrative technology solutions through software-as-a-service model for
Education Sales Management, LLC, MK Capital, New small to mid-size higher education institutions. The company offers TopSchool student lifecycle
World Ventures management (SLM) system, which provides an information management solution, a CRM to aggregate
and manage leads, a customizable student and faculty portal, a student information system, an ad-hoc
reporting suite, and a customer service model that serves students, faculty, and administrators. Its
solution includes various phases of students’ educational lifecycle, such as admissions, financial aid,
academics, student financials, and placement. The company also provides software implementation and
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configuration services, account management services for administrators, and self service portal and help
desk services. Its solutions enable institutions to drive decisions and insights in the student lifecycle.
TopSchool, Inc. was incorporated in 2008 and is based in Denver, Colorado.
Truenorthlogic N/A HR Systems TrueNorthLogic provides a comprehensive human capital management system for recruiting, licensure
and certiification tracking, professional development and performance management.
TUNEin to Reading N/A Intervention Core Tunein to Reading is a reading improvement platform designed to increase students’ fluency by providing
engaging practice opportunities through repeated reading and singing of song lyrics.
Turning Technologies Brockway Moran Assessment Systems Turning Technologies, LLC develops and supplies audience response technologies for higher education
and corporate training industries in the United States and internationally.
Tutor Cloud Imagine K12 TutorCloud is an online platform that places students with tutors from top colleges, and facilitates tutoring
through online classrooms.
Tutor Vista Manipal Education and Medical Group, New Enterprise Tutoring & Test Prep TutorVista Global Pvt. Ltd., an online tutoring company, provides online education services. The company
Associates, Silicon Valley Bank, TPG Growth, VKRM Services offers tutoring services in various subjects, such as english, math, biology, chemistry, physics, science,
economics, geography, history, and statistics. It also offers test preparation services. In addition, the
company offers learning programs for home-school students.
Tutor.com Ascend Venture Group, Dawntreader Ventures, Garage Tutoring Tutor.com provides academic support to students through online classrooms equipped with chat,
Technology Ventures, Intel Capital, Princeton Review filesharing, and interactive whiteboards, and tracks activity to give teachers qualitative and quantitative
Inc., Scholastic, Inc., Zoe Capital information about students' progress.
TutorGroup CyberAgent Ventures, Qiming Weichuang Venture Education Technology Founded in 2004, TutorGroup is a leading, online language institute specializing in English training in Asia
Capital Management and Mandarin Chinese training for global business professionals. TutorGroup created the first
commercially available synchronous learning portal in the world and developed four prominent service
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product businesses including VIPABC.com, TutorABC.com, TutorABCJr.com for English training and
TutorMing.com for Mandarin Chinese. To date TutorGroup has conducted over 5 million classes in 14
January 2013
countries. Visit www.tutor-group.com for more information. On April 25, 2012, TutorGroup Raises US$15
million from Qiming Venture Partners to Fund Expansion in China
A member of BMO

Tutorspree Founder Collective, Lerer Ventures, Sequoia Capital, SV Tutoring & Test Prep Tutorspree has created an online marketplace for K-12 tutors, allowing learners to find tutors in their city,
Angel, Thrive Capital Services searchable by topic, price and customer reviews. Emphasizing quality, Tutorspree has turned away nearly
50 percent of applicants wishing to become listed tutors.
TutorVista Pearson plc (LSE:PSON) Tutoring TutorVista provides affordable online tutoring through personalized teaching methods that ensure that
students master concepts and meet their long and short-term academic goals.
Tyler Technologies TYL (NYSE) HR, Finance & Tyler Technologies, Inc. provides integrated information management solutions and services for local
Procurement governments in the United States, Canada, Puerto Rico, and the United Kingdom. The company’s
financial management systems include modules for general ledger, budget preparation, fixed assets,
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requisitions, purchase orders, bid management, accounts payable, contract management, accounts
receivable, investment management, inventory control, project and grant accounting, work orders, job
costing, GASB 34 reporting, payroll, and human resources.
Ubooly, Inc. 500 Startups, Bullet Time GP, SoftTech VC Ubooly, Inc. develops toy application for mobile phones which acts as an interactive educational tool for
children aged 4 to 9 years.
Uboost N/A Teacher Tools uBoost is an online performance recognition and rewards platform where points are awarded for positive
behaviors and redeemed for relevant rewards.
Udacity, Inc. Charles River Ventures Udacity, Inc. is an educational institution that offers online courses focusing on artificial intelligence and
robotics.
Udemy, Inc 500 Startups, Insight Venture Partners, Learn Capital Online Learning Udemy, Inc. operates Udemy, a Website that enables to create online courses. It provides various tools
Venture Partners, Lightbank, MHS Capital Partners for educators, such as content platform to publish videos, presentations, and articles, as well as
presentation/video mashup tools; and live virtual classes to interact live with instructors through Udemy
Live! presentation-sharing, multiple live videos, chatroom, and whiteboarding. The company also enables
for marketing, public relations, and search engine optimization by integrating with social networks and
connecting with blogs.
Unicon Saints Capital IT Systems Unicon offers IT services for educational institutions and specializes in open source projects.
www.unicon.net
Vantage Learning N/A Assessment Vantage Technologies Knowledge Assessment, LLC provides online assessment and instructional
programs for K-12 and higher education sectors. Its products include MY Access Home Edition, which
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helps students and parents through the dual process of learning to write and writing to learn; MY Access
College Edition, which develops the writing skills necessary for success in college; MY Access
Professional Edition that improves user writing skills; and Add-On Packs, which provides additional guided
instruction, activities, and diagnostic tests to help users prepare for specific test events or to improve their
writing skills in a specific area.
Varolii BlueRun Ventures, Draper Fisher Jurvetson, Institutional Notification Systems Varolii Corporation provides on-demand communication software and services. It offers automated
Venture Partners, InterWest Partners, Longworth Venture communications, such as flight cancellation notices, fraud detection alerts, outage notifications, customer
Partners, Staenberg Venture Partners, Timberline surveys, medication adherence notifications, payment reminders, and emergency alerts over the phone
Venture Partners through text messaging, fax, or email. The company also provides billing, payment, and collection
applications; customer loyalty product, which is used for win-back programs, service/contract renewals,
loyalty rewards incentives, and new service offers; and customer service product.
Virtual Nerd N/A Tutoring Virtual Nerd is an interactive math and science tutoring service that houses over 1,200 step-by-step
tutorials.
VMware, Inc VMW (NYSE) Training VMware, Inc. provides virtualization infrastructure software solutions and related support and services
primarily in the United States. The company’s virtualization software solutions support a range of
operating system and application environments, as well as networking and storage infrastructures. It
provides VMware vSphere, a data center platform, which helps companies along the path of cloud
computing by providing compatible IT infrastructures. The company offers solutions that enable
organizations to aggregate multiple servers, storage infrastructure, and networks together into shared
pools of capacity. It provides products that address various infrastructure needs, such as planned and
unplanned downtime management, system recoverability, backup and recovery, resource provisioning
and management, capacity and performance management, and security.
BMO Capital Markets

January 2013
A member of BMO

Voxy Contour Venture Partners, ff Venture Capital, New York Personalized English learning on-the-go for iPhone andi Pad
City Investment Fund Manager, Inc., Seavest Capital
Partners, Seavest, Weld North
Voyager Learning Cambium Learning Group, Inc. (NasdaqGM:ABCD) Specialized Core Voyager Learning provides core and intervention curriculum and assessments to accelerate struggling
students to grade-level proficiency.
Walden University Laureate Education Online School Operators Walden University offers correspondence courses for graduate-level students. Its curriculum offers Ph.D.
and other graduate-level, regionally accredited degree programs in management, education, and the
social and behavioral sciences. Its affiliate Walden Institute offers online graduate level courses. Walden
Financial Group
University operates as a subsidiary of Laureate Education Inc.

Waterford Early Learning Non-Profit Intervention Core Waterford Early Learning individualizes three years of complete reading, math, and science to meet each
child's unique learning needs.
Waypoint Outcomes Bridgepoint Education, Inc. (NYSE:BPI) Educational Software Waypoint Outcomes, LLC develops software that streamlines the interactions between learners and
teachers. It offers Waypoint that enables the colleges of education, engineering, business, the health
sciences, and liberal arts to create and publish interactive rubrics, and then aggregate and disaggregate
the resulting data on student learning. The company also offers its products to the middle school, distance
learning in K12, and research universities. It serves its customers in the United States, Canada, Europe,
and internationally. The company was founded in 2003 and is based in Wynnewood, Pennsylvania.
Waypoint Outcomes, LLC operates as a subsidiary of Bridgepoint Education, Inc.
White Hat David Brennan Online K-12 School White Hat Management, LLC, a charter school operator, offers education-management and school-
Operators operation services. Its services include general operations management, human resources, financial
reporting, and student-data reporting to state education authorities. The company provides computer-
based class instructions; programs to transit over-age students from middle school to high school; tuition-
free charter schools to educate children; and distance and electronic learning programs. It operates
schools in Arizona, Colorado, Florida, Michigan, Ohio, and Pennsylvania.
Wiggio Inc. Launchpad Venture Group, LLC, New Atlantic Ventures Education Technology Wiggio, an online collaboration service designed for students, has been flying under the radar since
raising $2.1 million in funding back in spring of 2010. The company has been slowly and steadily growing
its user base, and now reaches over 2,000 universities and 120,000 students groups around the world, as
82
well as several national organizations. Today, the company is also announcing a major milestone: it just
hit 1 million users. In conjunction with this growth news, the platform, which currently offers web
conferencing, file sharing, chat, document creation, and more, is now also adding video messaging to its
available services. A premium version of Wiggio’s service is entering pilot testing, too.
Wimba Blackboard (owned by Providence Equity Partners) Collaboration Wimba, Inc. provides collaborative learning software applications and services for further/higher education
and K-12 markets. It offers Wimba Collaboration suite of products that enable institutions to bridge the
gap between technology and pedagogy by supplementing course management systems with in-person
learning environments. The company also provides Wimba Classroom, a live and virtual classroom
environment that enables educators and students to engage as if they were meeting face-to-face. In
addition, it offers Wimba Pronto, an instant messaging system for educators to advance and promote
learning; and Wimba Voice, a Web-based voice solution that facilitates and promotes vocal instruction.
Wireless Generation News Corp. (NasdaqGS:NWSA) SIS Wireless Generation, Inc. provides computer-based formative assessments, Web-based reporting, data
analysis, and instructional planning tools to PreK-12 educators. The company offers mCLASS software,
which enables teachers to use handheld devices for formative assessments in the elementary grades;
and Burst:Reading, a K-3 reading intervention that is used to analyze assessment data and produce
sequences of lessons for students. It also provides consulting, design, and development services for state
and district systems that centralize student data and integrate social networking tools. In addition, the
company offers professional development, product training, and implementation services for teachers,
coaches, or administrators. Wireless Generation, Inc. was founded in 2000 and is based in Brooklyn, New
York with satellite offices in Dallas, Texas; Atlanta, Georgia; and Washington, D.C.
WizIQ N/A Online Learning WizIQ provides virtual classroom technology to any educator, from the single tutor to an entire university.
BMO Capital Markets

Virtual office hours, distance education, lecture capture and more are enabled with this rich, collaborative
environment. Shared whiteboards, audio, video, and even desktops enhance both brick and mortar
classrooms and distance learning initiatives.
January 2013

A member of BMO

Wolters Kluwer Education Wolters Kluwer NV (ENXTAM:WKL) Educational Publishing Wolters Kluwer Education NV operates as an educational publisher in Europe. It focuses on curriculum-
based education and learning solutions. The company provides primary, secondary, and vocational
educational material, content, and services in the Netherlands, Sweden, the United Kingdom, Germany,
Belgium, Austria, and Hungary. It offers textbooks, teaching aides, testing and assessment tools, and
revision aides. The company provides its solutions in both electronic and traditional print format, including
books, CDs, databases, journals, loose-leaf publications, newsletters, and customized applications. It
Woogi Academy N/A Games Woogi Academy is a virtual school that leverages the social networking and gaming features developed
on its Woogi World site with an adaptive core and supplemental curriculum.
Financial Group
Wowzers N/A Intervention Core Wowzers is a content delivery system that addresses common core standards through a customized
playlist for students that includes a variety of learning activities.
83
BMO Capital Markets

January 2013
Companies mentioned (priced as of the close on January 2, 2013):

Accenture (ACN, $69.06: Market Perform)
Ambow Education (AMBO, $2.32: Not Rated)
American Public Education (APEI, $36.96: Outperform)
Apollo Investment (AINV, $8.49: Market Perform)
Apollo Group (APOL, $21.18: Outperform)
Apple (AAPL, $549.03: Outperform)
AT&T (T , $35.00: Not Rated)
Bridgepoint Education (BPI, $10.37: Market Perform)
Calidus Software (CALD, $4.71: Not Rated)
Cambium Learning Group (ABCD, $1.19: Outperform)
Capella Education (CPLA, $28.89: Market Perform)
Capital Group plc (LCG-LN, GBP36.50: Not Rated)
Cisco Systems (CSCO, $20.34: Outperform)
Cognizant Technology Solutions (CTSH, $76.14: Outperform)
CornerstoneOnDemand (CSOD, $30.32: Not Rated)
Dell (DELL, $10.68: Market Perform)
DeVry (DV, $23.82: Market Perform)
Discovery Communications (DISCA, $65.48: Not Rated)
Facebook (FB, $28.00: Outperform)
Google (GOOG, $723.25: Outperform)
GP Strategies (GPX, $21.00: Not Rated)
Grand Canyon Education (LOPE, $23.53: Outperform)
Heartland Payment Systems (HPY, $30.23: Not Rated)
Hewlett Packard (HPQ, $15.02: Market Perform)
Higher One Holdings (ONE, $11.48: Not Rated)
IBM (IBM, $196.35: Market Perform)
John Wiley & Sons (JW.A, $39.83: Not Rated)
K12 (LRN, $20.68: Outperform)
Learning Tree (LTRE, $5.26: Not Rated)
LinkedIn (LNKD, $112.65: Market Perform)
Microsoft (MSFT, $27.62: Market Perform)
News Corp (NWSA, $26.61: Not Rated)
Oracle (ORCL, $34.69: Market Perform)
Pearson (PSO, $19.68: Not Rated)
Promethean World (PRW-LN, GBP16.87: Not Rated)
Prospect Capital Corp. (PSEC, $11.01: Not Rated)
Questar Assessment (QUSA, $0.06: Not Rated)
QuinStreet (QNST, $6.83: Not Rated)
Raytheon (RTN, $58.62: Not Rated)
Rediff India Ltd. (REDF, $2.97: Not Rated)
Roper Industries (ROP, $114.48: Not Rated)
Rosetta Stone (RST, $12.67: Not Rated)
Saba (SABA, $8.89: Not Rated)
SAP (SAP, $82.40: Market Perform)
Scholastic (SCHL, $30.59: Not Rated)
School Specialty (SCHS, $1.01: Not Rated)
Scientific Learning (SCIL, $0.63: Not Rated)
Tyler Technologies (TYL, $50.00: Not Rated)
VMware (VMW, $94.93: Market Perform)
Washington Post (WPO, $370.00: Not Rated)
Xerox (XRX, $7.19: Market Perform)

Important Disclosures
Analyst's Certification
I, Jeffrey M. Silber, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities
or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations
or views expressed in this report.
Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and
their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness
in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and
service to clients.
Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Ltd. are not registered as research analysts with FINRA.
These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the NASD Rule 2711 and
NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research
analyst account.
Company Specific Disclosures

For Important Disclosures on the stocks discussed in this report, please go to
http://researchglobal.bmocapitalmarkets.com/Public/Company_Disclosure_Public.aspx.
Distribution of Ratings (September 30, 2012)
Rating BMOCM US BMOCM US BMOCM US BMOCM BMOCM Starmine
Category BMO Rating Universe* IB Clients** IB Clients*** Universe**** IB Clients***** Universe
Buy Outperform 38.3% 17.9% 57.8% 39.0% 49.5% 54.3%
Hold Market Perform 58.5% 7.9% 39.1% 56.4% 48.5% 40.3%
Sell Underperform 3.1% 11.8% 3.1% 4.6% 2.0% 5.3%
* Reflects rating distribution of all companies covered by BMO Capital Markets Corp. equity research analysts.
** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment
Banking services as percentage within ratings category.
*** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment
Banking services as percentage of Investment Banking clients.
**** Reflects rating distribution of all companies covered by BMO Capital Markets equity research analysts.
***** Reflects rating distribution of all companies from which BMO Capital Markets has received compensation for Investment Banking
services as percentage of Investment Banking clients.
Ratings and Sector Key
We use the following ratings system definitions:
OP = Outperform - Forecast to outperform the market;
Mkt = Market Perform - Forecast to perform roughly in line with the market;
Und = Underperform - Forecast to underperform the market;
(S) = speculative investment;
NR = No rating at this time;
R = Restricted – Dissemination of research is currently restricted.
Market performance is measured by a benchmark index such as the S&P/TSX Composite Index, S&P 500, Nasdaq Composite, as
appropriate for each company. BMO Capital Markets' seven Top 15 lists guide investors to our best ideas according to different objectives
(CDN Large Cap, CDN Small Cap, US Large Cap, US Small cap, Income, CDN Quant, and US Quant) have replaced the Top Pick rating.
Other Important Disclosures
For Other Important Disclosures on the stocks discussed in this report, please go to
http://researchglobal.bmocapitalmarkets.com/Public/Company_Disclosure_Public.aspx or write to Editorial Department, BMO Capital
Markets, 3 Times Square, New York, NY 10036 or Editorial Department, BMO Capital Markets, 1 First Canadian Place, Toronto, Ontario,
M5X 1H3.
Prior BMO Capital Markets Ratings Systems
http://researchglobal.bmocapitalmarkets.com/documents/2009/prior_rating_systems.pdf
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A general description of how BMO Financial Group identifies and manages conflicts of interest is contained in our public facing policy for
managing conflicts of interest in connection with investment research which is available at
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Equity Research
Global Head of Research Director of Canadian Equity Research Director of US Equity Research
Ian de Verteuil 416-359-4478 Paul Campbell 416-359-5424 Christine Farkas, CFA 212-885-4113
Financials_____________________ Materials_____________________ Energy & Utilities_____________

Canadian Banks Metals & Mining Integrated Oils/Refiners
John Reucassel, CFA 416-359-4379 Tony Robson +44 (0)20 7246 5436 Randy Ollenberger 403-515-1502
US Banks Stephen Bonnyman, CFA 416-359-8456 Oil & Gas: North American E&P
Lana Chan 212-885-4109 Edward Sterck +44 (0)20 7246 5421 Randy Ollenberger 403-515-1502
Peter Winter 212-885-4108 Meredith Bandy, CFA 303-436-1113 Jim Byrne, P. Eng., CFA 403-515-1557
Johannes Faul, CFA 416-359-7732 Phillip Jungwirth, CFA 303-436-1127
Insurance
Tom MacKinnon, FSA, FCIA 416-359-4629 Precious Metals Dan McSpirit 303-436-1117
David Haughton 416-359-4052 Gordon Tait, CFA 403-515-1501
Diversified Financials Andrew Breichmanas, P.Eng. +44 (0)20 7246 5430
John Reucassel, CFA 416-359-4379 Oil & Gas: International E&P
Atul Shah 416-359-4691 Mining Exploration & Development Randy Ollenberger 403-515-1502
David J. Chiaverini, CFA 212-885-4115 John Hayes, P. Geo. 416-359-6189 Jared Dziuba, CFA 403-515-3672
Andrew Kaip, P. Geo. 416-359-7224 Oil & Gas: Services & Equipment
Exchanges & Trading Venues
Brian Quast 416-359-6824 Alan Laws, CFA 303-436-1125
Jillian Miller 404-926-1581
Paper & Forest Products Mike Mazar, CA, CFA 403-515-1538
Real Estate Investment Trusts
Stephen Atkinson 514-286-7309 Electric Utilities & Independent Power
Paul E. Adornato, CFA 212-885-4170
Richard C. Anderson 212-885-4180 Fertilizers Michael S. Worms 212-885-4031
Karine MacIndoe 416-359-4269 Joel Jackson, P.Eng., CFA 416-359-4250 Ben Pham, CFA 416-359-4061
Pauline Alimchandani, CA, CFA 416-359-6943 Pipelines
Carl Kirst, CFA 713-546-9756
Industrials_ __________________
Consumer_____________________ Transport - Rails & Airlines
Retail - Broadlines/Hardlines Fadi Chamoun, CFA 416-359-6775 Healthcare_ __________________
Wayne Hood 404-926-1590 Diversified Industrials Biotechnology
Retail - Apparel & Specialty Charles D. Brady 617-960-2363 Jim Birchenough, M.D. 415-591-2129
John D. Morris 212-885-4016 Bert Powell, CFA 416-359-5301 Medical Technology
Retail - Food & Drug Machinery Joanne K. Wuensch 212-883-5115
Peter Sklar, CA 416-359-5188 Joel Tiss 212-883-5112 Managed Care/Benefit Managers/Facilities
Karen Short 212-885-4123 Services - Equipment Distribution & E&C Dave Shove 212-885-4146
Food & Ag Products Bert Powell, CFA 416-359-5301 Pharmaceuticals
Kenneth B. Zaslow, CFA 212-885-4017 Services - Business Process Outsourcing Alex Arfaei 212-885-4033
Food & Beverage Jeffrey M. Silber 212-885-4063
Amit Sharma, CFA 212-885-4132 Services - Staffing & Online Recruitment
Macro_________________________
Restaurants Jeffrey M. Silber 212-885-4063
Investment Strategy
Phillip Juhan, CFA 404-926-1599
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Tech - Communications Equipment
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Tech - Software/Specialty Hardware
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Ken Hartviksen, CFA 416-359-6211
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Jeffrey M. Silber 212-885-4063 Ambrish Srivastava, Ph.D 415-591-2116
Small Caps
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Media - Digital Entertainment
Edward S. Williams 212-885-4054
Media - Entertainment & Cable
Tim Casey, CFA 416-359-4860
Marketing & Advertising
Daniel Salmon 212-885-4029
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January 2013

Highlights Our View

A member of BMO Financial Group 2 January 2013

A member of BMO Financial Group 3 January 2013

A member of BMO Financial Group 4 January 2013

2010 2011 2012 2013 2014 2015 2016 2017

Source: Gartner and IDC estimates.

A member of BMO Financial Group 5 January 2013

Exhibit 2. Venture Capitalist Investment in Education Technology

Source: National Venture Capital Association

 Large addressable market with strong consumer demand characteristics

 Apparent failures of current model, and appealing “social” mission

 An industry “ripe” for disruption (mobile, SAAS, online)

 Growing budgetary pressure on schools to find cheaper alternatives

 Growing regulatory pressure for better student outcomes and analytics

 Abundant funding opportunities (grants, foundations, student loans, federal)

A member of BMO Financial Group 6 January 2013

Technology in the K-12 Sector

2010 2011 2012E 2013E 2014E 2015E 2016E

Source: Gartner estimates.

Exhibit 4. Sources of Technology Funding for US K-12 Schools

A member of BMO Financial Group 7 January 2013

K-12 Software Market

Exhibit 5. K12 Software Spending (2010)

A member of BMO Financial Group 8 January 2013

A member of BMO Financial Group 9 January 2013

Exhibit 6. US PreK-12 LMS Sales (2011-12 – 2014-15)

Source: Simba Information and BMO Capital Markets.

Drivers of LMS adoptions in schools include:

 States efforts to comply with data management requirements recommended by the

 Potential educational benefits of using an LMS.

A member of BMO Financial Group 10 January 2013

Exhibit 7. PreK-12 School Market Share of LMS Vendors

K-12 Hardware Market

A member of BMO Financial Group 11 January 2013

Exhibit 8. Technology Hardware Use and Penetration in K-12

Distribution of instructional computers % of computers

However, despite the growing prevalence of in-school computing, we believe several

A member of BMO Financial Group 12 January 2013

 Integration and interoperability. We believe integration across networks and devices

K-12 IT Systems Market

K-12 Online Schools

A member of BMO Financial Group 13 January 2013

We provide some detail on differing models based on research provided by Evergreen’s

 Consortium and educational service agency programs. This model is becoming

A member of BMO Financial Group 14 January 2013

Exhibit 10. Online Content Providers to Public K-12 Schools (2008

A member of BMO Financial Group 15 January 2013

K-12 online Unique drivers of K-12 online learning include:

 Higher quality of online offerings and improved access.

 The increasing acceptance of charter schools and raising of enrollment caps.

 The growth of district-led online schools and online consortium schools.

Hurdles to growth include the following:

 Accreditation. As online school accreditation is relatively new and uncharted territory,

A member of BMO Financial Group 16 January 2013

K-12 US K-12 Publishing Market

Exhibit 12. K-12 Instructional Media and Services Market (2004-2017E)

A member of BMO Financial Group 17 January 2013

Exhibit 14. Global Textbook Market by Type (2009-2014E)

16% 16% 17% 18%

Other research points to the same trend:

A member of BMO Financial Group 18 January 2013

 Assessment capability. Digital products enable comprehensive student learning