4: ApplyBoard plummets 74% vs Australian Agencies Being Acquired

Speaker 1: ApplyBoard has lost 74% of its value this year. $2,400,000,000 wiped out. Yet in the same market conditions, Strategic Buyers just completed two acquisitions of agencies with Australian connections. What's going on, and what does it mean for you? I'm Conrad.

Speaker 2: And I'm Eden. Two modest acquisitions a few weeks ago show the reality gap between venture capital hype and what's actually happening in the international education market. While Unicorn's valuations collapse, exposing the sometimes feared ApplyBoard, the deals being made should have your attention.

Speaker 1: So here's what's happening. First, ApplyBoard's valuation plummeted 74 from $3,200,000,000 to $800,000,000 a reality check for our sector. While this happened in February, it's relevant as we contrast it with two acquisitions that just happened.

Speaker 2: Ease My Trip pays just £3,500,000 for 49% of Planet Education, notably a Sydney based agency with strong Australian connections, entering the international education sector, now offering not only travel, but education.

Speaker 3: Studying quietly acquires Indonesian recruiter Sun Education, which places students primarily to Australia. Both deals target Australian student placement.

Speaker 2: Let's dig deeper. ApplyBoard's 2,400,000,000 valuation wipeout versus EaseMyTrip's £3,500,000 deal shows consolidation isn't about massive buyouts or large agencies crushing small agencies. It's about strategic, affordable acquisitions to enter a market that, while under pressure, it's still huge.

Speaker 1: Both of these deals target Australian agencies. And despite the policy challenges Australia is going through, Australia remains a prime acquisition target because the student pipeline is still valuable.

Speaker 2: So what about other agencies? Should them be concerned about these deals, Conrad?

Speaker 4: Probably not. The consolidation wave isn't coming. Deals happen, but the feared wave of large and master agents taking over completely is, at least for now, not coming.

Speaker 2: Large agencies have both advantages and disadvantages. Small agencies are still able to provide an outstanding tailored white glove service that larger agencies cannot.

Speaker 3: And master agencies are a response to university decisions, policy changes, and market pressure. But while they may have become necessary in certain cases, there's still some pushback from education providers, other agents, and policymakers.

Speaker 2: What's the key takeaway then?

Speaker 1: Here's the thing. The Australian market is still under pressure, and it may not get much better in the foreseeable future, but it's still huge.

Speaker 2: Diversify from Australia, sure. But don't forget that as these deals prove, there are still value and demand in enrolling students in Australia, especially if the student fits what the Australian government is looking for. That's reality, even if uncomfortable.

Speaker 1: That's right.

Speaker 2: And that's The Brief. See you next episode of The Brief International Education Edition.