On September 1, Francisco Companions, a private equity financial commitment company, announced it experienced acquired Follett Faculty Remedies.
Follett College Solutions’ products include the Destiny Library Manager applied by numerous US K–12 school libraries, the Aspen College student Info System, and the Titlewave ecommerce system, which it utilizes to distribute print and digital content for academic institutions. The business was obtained from Follett Corporation, a family members-owned enterprise dependent in Westchester, Illinois.
While divesting its Follett University Solutions division, Follett Company retains possession of Baker & Taylor, a key supplier of textbooks and other content material to libraries, as nicely as Follett Better Schooling, which operates faculty bookstores and virtual storefronts.
Follett College Remedies utilized 1,500 out of a full of 9,000 workforce of Follett Company. It ranks as one of the greatest firms in the library engineering sector, with its merchandise carried out in a lot more than 75,000 educational facilities.
A new composition
As a result of the acquisition, Francisco Partners has appointed a new board of administrators to oversee the business, which is retaining its title while it will have no immediate involvement with Follett Corporation heading ahead. Follett Faculty Solutions’ executive management and whole workforce have been retained, and the organization will proceed to be headquartered in McHenry, Illinois.
The new organization will be led by two main govt officers, the two of whom will report to the new board. Britten Follett, a fourth-era member of the Follett relatives, exits Follett Company and will provide as CEO of content for Follett Faculty Alternatives. Paul Ilse, an operating companion for Francisco Companions and former CEO of Charlotte, North Carolina–based Discovery Instruction, will serve as CEO of engineering.
A consolidated EdTech sector
Francisco Partners, a important private equity business with extra than $25 billion in assets underneath management, invests in engineering organizations that span a lot of industries, which includes wellness treatment, monetary companies, and specialized infrastructure.
In the instructional know-how sector, Francisco Partners’ portfolio features Renaissance, which specializes in finding out analytics for pre-K–12 schools (acquired in July 2018) Discovery Education, which gives print and digital textbooks and curriculum components (majority ownership obtained February 2018) Mystery Science, which presents K–5 STEM curriculum material (acquired by using Discovery Training Oct 2020) Freckle Instruction, which offers online classes, routines, and assessments for math, language arts, social studies, and science (acquired by Renaissance in May 2019) and VitalSource Systems, an education and learning engineering and electronic content organization (obtained from Ingram Written content Team in April 2021).
In 2006, Francisco Partners obtained Ex Libris, launching the organization toward its present powerful placement in the library engineering market. The acquisition, alongside with its follow-on acquisition of Endeavor Information Programs, led to the improvement of the Primo and Alma library products and services platforms. As a result of a succession of other personal equity transitions, Ex Libris grew to become the dominant service provider of know-how items to tutorial and analysis libraries and was obtained by ProQuest in 2015.
Francisco Partners states that it does not prepare to fold Follett College Options into any of its other instructional technologies organization and will function it as an independent corporation. It may provide new enterprise or know-how assets to strengthen its acquisition, a popular approach amid expenditure companies and 1 that Francisco Partners made use of with Ex Libris.
The current and Future
The marketplace share for Future among US college libraries is increased than the marketplace share captured by any other firm in the library sector. For instance, out of the roughly 100,000 college libraries in the US, about 75,000 use Future. By comparison, ProQuest retains a 53% industry share amongst all US tutorial libraries when counting all its source management solutions (Aleph, Alma, Sierra, and Voyager).
As the dominant service provider of library administration solutions for K–12 libraries in the US, Follett College Solutions’ change of possession warrants attention. The deal does not result in supplemental marketplace consolidation. It does not cut down the number of gamers in the library technology business, nor does it narrow the products and solutions readily available.
Destiny, its flagship product or service, has accomplished an extraordinary purchaser foundation in the US K–12 sector and continues to see robust gross sales. The divestment signals that Follett Company was not positioned to just take the business forward to its anticipated likely.
The sale to Francisco Partners provides two vital means: expense and skills. The company will be equipped to infuse supplemental money into the corporation to speed up its growth tactic and to broaden its market place. Considering the fact that it concentrates completely on engineering-focused firms, Francisco Partners brings considerable expertise in operating with its companies to refine and execute solution improvement tactics.
Heading forward, envisioned alterations could possibly incorporate much more aggressive product progress techniques, with preliminary concentrate on products and solutions these types of as MyDestiny and Destiny Discovery Interact. The new enterprise also seems nicely positioned to develop advertising and marketing its goods outside of the established presence in the US and Canada. Other possible moves involve tapping into systems and instructional content—such as understanding analytics or additional digital curriculum resources—through other Francisco Associates portfolio organizations.
For Follett University Answers, the foreseeable future seems to keep a lot more bold enterprise methods and more quickly complex progress than what it could have achieved by way of the more conservative organization processes common of significant household-owned enterprises like Follett Corporation.
Although Follett Corporation’s go to jettison 1 of its main enterprise divisions was sudden, Francisco Associates has a background of strengthening the prospects of organizations in the instructional engineering sector.