Activate Learning and Lincoln College Group drop merger plans

'I think what we felt with where we are at the moment, given those [previous] mergers, our group services are probably at their maximum capacity'

'I think what we felt with where we are at the moment, given those [previous] mergers, our group services are probably at their maximum capacity'

18 Mar 2022, 16:54

More from this author

Plans for a merger that would create the largest college group in the country have been dropped.

Activate Learning and Lincoln College Group started exploring a merger last year when it was announced the latter’s chief executive Gary Headland would take the reins at Activate after its chief executive Sally Dicketts retired.

But Activate announced today that the merger will not go ahead. In a statement the group said this decision was made following due diligence being carried out.

However, Dicketts later told FE Week that “nothing untoward” was found with the due diligence, and instead the decision was strategic.

“The biggest reason for Activate is we have virtually doubled in size with Bracknell and Wokingham College and then taking on the Surrey group of colleges which happened just before lockdown.

“Those colleges were also slightly difficult financially, because they had very large deficits.”

Dicketts explained that when Headland was appointed he suggest a merger could be looked at- something governors were open to considering.

“But obviously it has to fit in with the strategic plan we have. We aren’t anti-merger, but it has to fit in with where we are at the moment,” she said.

“It also has to be financially right and I think what we felt with where we are at the moment, given those [previous] mergers, our group services are probably at their maximum capacity.

“Therefore, if we now merged we would probably have to take on more pupils and therefore the financial savings that we have made in the past wouldn’t be there and the board felt there was still quite a lot to do within Surrey to really bring them on board.”

Dicketts explained that the technical challenges associated with a merger were also a factor.

“Something like 70 per cent of commercial and public sector mergers never happen. Normally because you have got to change all your systems,” she said.

“A lot of our systems are different… once you start getting into all of that in a merger, then you start getting into the cost of implementing it.

“That is when you think, if you have just taken over two colleges that are net losing six and a half million, do we have a lot of cash left over to put into changing all of these systems, when frankly we’ve just changed them.”

Both Lincoln College Group and Activate Learning are made up of multiple colleges and have international and commercial operations.

LCG has three colleges located in Lincoln, Gainsborough and Newark and Activate’s seven campuses serve Berkshire, Oxfordshire and Surrey.

Latest education roles from

Principal & Chief Executive – Bath College

Principal & Chief Executive – Bath College

Dodd Partners

IT Technician

IT Technician

Harris Academy Morden

Teacher of Geography

Teacher of Geography

Harris Academy Orpington

Lecturer/Assessor in Electrical

Lecturer/Assessor in Electrical

South Gloucestershire and Stroud College

Director of Management Information Systems (MIS)

Director of Management Information Systems (MIS)

South Gloucestershire and Stroud College

Exams Assistant

Exams Assistant

Richmond and Hillcroft Adult & Community College

Sponsored posts

Sponsored post

Functional Skills reimagined: Drive success in English & Mathematics with modern qualifications.

In today’s educational landscape, supporting learners with essential English and maths skills goes beyond traditional teaching. It’s about providing...

Advertorial
Sponsored post

Do you want to be part of The Bedford College Group’s next chapter?

At The Bedford College Group, we are passionate about transforming lives and communities through education. As one of the...

Advertorial
Sponsored post

It’s Education’s Time to Shine: Celebrate your Education Community in 2025!

The deadline is approaching to nominate a colleague, team, whole school or college for the 2025 Pearson National Teaching...

Advertorial
Sponsored post

Framing the future of creative education: new BTEC HTQ in Photography nurtures talent beyond the lens

The creative industry is evolving rapidly, and so is the way we teach photography. Discover how Pearson's new BTEC...

Advertorial

More from this theme

Colleges

Intervention lifted at pandemic-hit City Lit

Principal praises staff and FE Commissioner as college finances recover faster than planned

FE Week Reporter
Colleges

Ban mandatory bikini waxes on beauty students, says mum

A college tutor wrongly claimed a 16-year-old needed to undergo waxing to pass her course

Josh Mellor
Colleges, sixth form colleges

Sixth form college academisation reaches tipping point

But some principals doubt whether the Labour wants new academy conversions

Josh Mellor
Colleges, Politics

Saudis ‘ready to offer decade-long FE tuition deals’ to UK colleges

Fresh tendering round expected to launch this academic year to revive ventures in the kingdom

Billy Camden

Your thoughts

Leave a Reply

Your email address will not be published. Required fields are marked *

One comment

  1. Freddy

    While mergers don’t happen for any number of reasons, I think Sally Dicketts is being disingenuous in her statement as Activate Learning have received tens of £million of public purse for these mergers to do exactly what she now says is costing it’s operating surplus. Where dis that money go then?