With the acquisition, Skillsoft plans to enhance its technical skills offering. Here are the top-line bullets you need to know.
WHO ARE THE PARTIES TO THE DEAL?
- Codecademy: New York-based Codecademy teaches 40M individuals across 150 countries how to program in a variety of languages. Founded in 2011, the startup also has corporate clients, including General Motors and Kayak. The company expected to generate $42M in revenue in 2021, up 31% year-over-year, and deliver gross margins of 85%+.
- Skillsoft: New Hampshire-based Skillsoft offers 180,000 courses, videos, and books in 29 languages to over 12,000 corporate clients and over 46M individual learners across the globe. The company serves about 75% of the Fortune 1000, and it also caters to clients like the US Air Force and the United Parcel Service. It recently acquired Pluma, a platform for training executives, and Global Knowledge, a platform for developing IT skills. Skillsoft expects to generate $685M-700M in adjusted revenue and an EBITDA of $165M in FY’22.
WHY DOES THE MARKET MATTER?
- The education technology market is expected to reach a value of $377.9B by 2028, growing at a CAGR of 19.9%, according to Grand View Research.
- Edtech solutions are increasingly being adopted to lower content production costs and increase geographical reach.
- The global developer shortage has increased the demand for online programming instruction.
- The demand for online education and remote instruction has risen amid the pandemic, driving market growth.