Cognita’s owner Jacobs Holding is reviewing strategic options – including a full sale – for one of the world’s largest international school operators after inviting informal pitches from a host of banks, two sources familiar with the situation said.

In recent weeks, at least five investment banks have delivered presentations on market sentiment and comparable transactions with a view to being awarded a sellside mandate in due course, according to both sources.

All options – including a majority exit, a minority stake sale, a co-control deal, and an equity syndicate – are currently under consideration, the first source pointed out.

Swiss family office Jacobs Holding, which owns a majority stake in Cognita, seeks to transact within the next 12 to 24 months – paving the way for a potential deal as soon as next year, according to both sources.

In the event of a formal process, Cognita is expected to be marketed off EBITDA of GBP 250m-plus, or an equivalent figure in an alternative currency, the first source continued. As a UK-headquartered business, Cognita reports its financials in sterling but has historically marketed loans and equity stakes in euros and, more recently, in US dollars.

Jacobs Holding could target a valuation of GBP 5bn for Cognita, the second source said.

Jacobs Holding is re-assessing its options for Cognita less than six months after it called off the sale of a EUR 1bn minority stake in the business, as revealed by this news service in June.

Since Jacobs Holding put the Bank of America-led process on ice, several multi-billion transactions have been executed in the international schooling sector. These include the USD 14.5bn acquisition of Nord Anglia announced last week, as well as a EUR 2bn co-control deal for Globeducate between Wendel and Providence Equity Partners in July.

These successful deals prompted Jacobs Holding to re-assess its strategic options for Cognita, the first source pointed out.

Earlier this month, Cognita repriced its EUR 1.26bn term loan B to Euribor+ 400bps after tapping the US liquid market for the first time a week prior for a USD 450m add-on.

Jacobs Holding acquired the school operator for a reported GBP 2bn in September 2018 from Bregal Investments and KKR.

Just months after announcing the buyout, Jacobs Holding syndicated a portion of its equity in Cognita, selling down minority stakes to BDT Capital Partners and Sofina in January 2019 for undisclosed sums. Under the deal, Jacobs Holding continued as Cognita’s majority owner, it stated in an official announcement.

Founded in 2004, Cognita educates more than 85,000 students and employs more than 15,000 staff across its 100-plus schools in Asia, Europe, Latin America, the Middle East, India, and North America.

A spokesperson for Jacobs Holding declined to comment. A spokesperson for Cognita declined to comment on “market speculation”.