Popular online courses learning platform, Simplilearn, supported by private equity firm, Blackstone, has reportedly acquired Fullstack Academy, a U.S.-based bootcamp education company, as it eyes expansion in North America.
Apparently, the acquisition occurs when competition in the upskilling space and higher learning is skyrocketing following a downturn in online learning.
According to sources, Simplilearn has purchased Fullstack in an all-cash deal from Zovio Inc., its U.S.-based publicly traded parent entity. Allegedly, Zovio has been trying to sell Fullstack since September.
As per Zovio Inc’s filings with the Securities and Exchange Commission (SEC), it was looking forward to gaining around $34-$55 million by selling Fullstack.
The transaction value has been however not yet to be disclosed by Simplilearn.
With this Fullstack acquisition, Simplilearn will be able to access around 20 universities and government partnerships across the country, said Simplilearn in a recent statement.
For the unversed, Fullstack Academy is one of the leading providers offering web development, cybersecurity, DevOps, data analytics, and product management, among others.
The acquisition will further assist Simplilearn in scaling up its footprint in the bootcamp space and accelerate revenue growth to $200 million by FY24 (2023-24), of which 70% is slated to come from global markets, stated the firm.
Apparently, Simplilearn recorded a revenue of USD 58.6 million (Rs 479.7 crore) in FY22, up from USD 41.7 million (Rs 340.9 crore) in FY21.
Krishna Kumar, Founder and CEO (Chief Executive Officer) of Simplilearn, stated that the firm expects its revenue to reach over USD 122 million (Rs 1,000 crore) in FY23.
Currently, Fullstack Academy employs 300 people across the U.S., stated Simplilearn further adding that it is slated to generate revenue of USD 30 million this year.
For the record, after this acquisition, the employees of Fullstack Academy will be working in their roles under the combined organization, taking the total count of Simplilearn to over 2,500.
Fullstack Academy will continue to serve its partners and students as an individual business unit within Simplilearn.