The two companies said Wednesday that they have agreed to acquire rival US-based education technology company Codecademy for $ 525 million in cash and stock.
Closely organized, Codecademy offers free basic online computer coding classes in areas such as programming, data science, and cybersecurity. The services of New York-based startups also include more detailed paid services. In February, Codecademy raised $ 40 million in new funding to expand into markets such as India, where a high percentage of people have an engineering degree.
Based in Boston, Skillsoft provides its clients with software that provides training and classes on leadership development, workplace harassment prevention, and coursework to qualify as a system engineer. A library of 180,000 courses, books and videos is available in 29 languages and customers include the US Air Force.
The pandemic has spurred on, and employers Increasingly turn to digital training courses A trend that is expected to continue beyond the virus as a way to retain and retrain workers in the office or at home.
In the case of Skillsoft, this agreement enhances the provision of technical skills by adding programming language expertise for developers and other types of technology workers.
“The skill gap is the most serious in technology,” said Jeffrey Tar, CEO of Skillsoft.
Codecademy CEO Zach Sims said the sale will give him access to a larger customer base. “It’s a lot faster than we do independently and really helps Codecademy grow across our business,” he said.
Skillsoft’s past struggles represent risks in the fast-growing online education market.society Apply for bankruptcy protection In June 2020, it was hit by a combination of heavy debt and fierce competition with companies that provided free access to similar services.
It emerged from bankruptcy protection in August of that year, eliminating $ 1.5 billion in debt.this Published in June 2021 Due to a merger with the special acquisition company Churchill Capital Corp II in New York.
Skillsoft was over-leveraged by former private equity owners, and these issues were addressed by increasing the company’s capital and introducing new management and board of directors, Skillsoft’s Tarr said. He joined the company as part of the merger of Skillsoft and Churchill.
Skillsoft’s acquisition of Codecademy is the third and largest acquisition since its listing on SPAC.
The transaction combines two Amsterdam-based portfolio investments.
NV, the largest shareholder of China’s internet and video game giants
Tencent Holdings Ltd
Prosus is one of the world’s largest technology investors, betting on a variety of online platforms for food delivery, classification, fintech and educational technology around the world. In August, we made the largest acquisition to date. Acquisition of Indian payment platform Bill Desk is $ 4.7 billion.
Prosus is from Skillsoft Largest shareholder, According to FactSet, it owns a 38% stake.
Manages Prosus, which owns about 12% stake
An online learning operator listed on Nasdaq that provides content to Skillsoft’s platform. Codecademy also counts Prosus as an investor.
Prosus owns a stake in Byju, an Indian education and engineering operator worth $ 16.5 billion. In June, Prosus signed a $ 1.8 billion deal to acquire StackOverflow, an online community for software developers.
Write to Ben Dammet email@example.com
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Skillsoft signs $ 525 million to acquire Ed-Tech’s rival Codecademy
Source link Skillsoft signs $ 525 million to acquire Ed-Tech’s rival Codecademy
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