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Dive letter:
- Bootcamp and online course platform Simplilearn announced Monday that it has acquired Fullstack Academy, a bootcamp provider that has contracts with 20 universities and other organizations.
- A Fullstack representative did not disclose the acquisition price, but said it was an all-cash deal. Fullstack’s previous owner, Zovio, estimated in September that it could up to $55 million.
- With the sale of Fullstack, Zovio has offloaded its last remaining business.company shareholders A plan was approved in October The collapse comes after Zovio failed to transition from a for-profit university operator to an educational technology service provider.
Dive Insights:
This lobby or full stack Part of Zovio’s plan to liquidate assets. The company, the owner of two for-profit universities with revenue at one point approaching $1 billion, hoped to become an education services provider but failed to gain traction.
Zovio began spinning off its business earlier this year. in May, It sold TutorMe, a tutoring services provider, sold to GoGuardian, a K-12-focused education technology company, for $55 million.a few months later it 15-year contract ended Provides educational services to its largest business segment, the University of Arizona Global Campus.
Under the agreement, UAGC paid Zovio $1, took over a $20 million lease in Arizona and hired nearly all of the company’s education services employees, according to a filing with the SEC. In exchange, Zovio paid UAGC $10.5 million and handed over the right to a $2.7 million security deposit for taking over the lease.
Under the leadership of Simplilearn, Fullstack Academy will operate as a separate business unit, retaining its name and bootcamp curriculum, according to the announcement. Fullstack CEO Jerrad Tausz will continue in his role, while Simplilearn will take over the bootcamp provider’s staff. Simplilearn’s headcount will now exceed 2,500.
“This acquisition is an exciting opportunity for our organization,” Tausz said in a statement. “We are confident in the future success of our organization and are confident that the change of ownership will benefit all employees, students, partners Excited about the impact of the alumni.”
The acquisition follows Simplilearn’s funding Secured $45 million in the latest funding round. It was led by venture capital firm GSV Ventures.
Based in San Francisco and India, Simplilearn has about 70,000 monthly active users and more than 500 corporate clients, according to the sale announcement. With the acquisition, it hopes to bring in $200 million in revenue by fiscal 2024.
Krishna Kumar, founder and CEO of Simplilearn, said in a statement: “Through Fullstack Academy’s strong presence in the US with its training camps and elite partnerships with top universities, we believe this collaboration will allow us to Accelerating our global expansion plans.”