Merger and acquisition (M&A) activity in the Education Technology Industry has been healthy through year-to-date (YTD) 2017, already matching deal volume for 2015 and surpassing YTD volume for every year except the record set in 2016. Activity is being driven by industry fragmentation and the fact that the market supports hundreds of small and medium sized businesses. Moreover, due to increasing cash reserves of corporate buyers and the capital overhang associated with the private equity community, the amount of capital available for transactions is now increasing faster than the number of viable targets. As buyers and investors chase opportunities, valuations have risen exponentially, especially for fast growing targets with profitable business models and high operating leverage. As of October 16, average public company revenue multiples reached a premium 4.4x.