The Riverside Company has acquired N2Y, a developer of special education curriculum and special education materials that are used by teachers, speech pathologists, and assistive technology professionals as a resource to help children with special needs to learn through engagement.
N2Y’s products include Unique Learning System, a standards-based curriculum program designed for students with special needs; news-2-you, a weekly current events newspaper; and SymbolStix, a symbol-based language used in learning materials. The company sells its products to teachers and school administrators through a cloud-based subscription platform. N2Y was founded in 1997 by Jacquie Clark, a speech-language pathologist, and is based west of Cleveland in Huron, OH (www.n2y.com).
“N2Y has thrived largely through word-of-mouth referrals based on the strength and breadth of its high-quality offerings,” said Riverside Partner Peter Tsang. “They are the only company offering a full gamut of products designed specifically for the special education market, and their proprietary symbols-based language and lessons keep students engaged and learning.”
Riverside intends to expand N2Y’s customer base, add new products, enhance teacher training and development efforts, and pursue add-on opportunities. “Riverside has invested in 55 education and training companies,” said Mr. Tsang. “We’ll leverage our education advisors and resources to help support management’s growth plan. N2Y already has a passionate team, outstanding foundation and proven suite of products, so we’re eager to get started.”
The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 420 transactions. The firm’s international portfolio includes more than 80 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
Working on the transaction with Mr. Tsang were Vice President Drew Flanigan, Senior Associate Chase Eckert, Associate Ming Yau and Operating Partner Dave Powell. Origination Principal Amy Margolis and Associate Director Cheryl Strom sourced the transaction and Partner Anne Hayes led financing efforts.
Cleveland-based investment bank Western Reserve Partners (www.wesrespartners.com) and New York-based Desilva+Phillips (www.desilvaphillips.com) represented N2Y’s owners (the Clark family) on the sale. Managing Director Kevin Mayer led the transaction for Western Reserve and Managing Director Robin Warner was the lead for DeSilva+Phillips.
“This was one of the most sought-after companies that DeSilva+Phillips and Western Reserve Partners have had the opportunity to represent. The transaction partnered a high growth, respected education technology company that improves the lives of special education students and teachers, with an expert and leading acquirer of successful education companies. I can’t wait to see what these two exceptional groups build in the coming years,” said Mr. Mayer.
Madison Capital Funding (www.mcfllc.com) and New Canaan Funding (www.newcanaanfunding.com) provided financing to support the transaction.
© 2016 Private Equity Professional • 7-27-16
