Simplilearn acquires Fullstack in the US to accelerate North America’s expansion.
Simplilearn, a higher education technology platform sponsored by private equity firm Blackstone, has acquired Fullstack Academy, a US-based Bootcamp education company, to enhance its presence in North America.
Simplilearn, a higher education technology platform sponsored by private equity firm Blackstone, has acquired Fullstack Academy, a US-based Bootcamp education company, to enhance its presence in North America. The purchase comes at a time when competition in the higher education and upskilling market is heating up, despite a drop in online learning.
Simplilearn has acquired Fullstack in an all-cash transaction from its publicly traded parent company Zovio Inc. in the United States. Since September, Zovio Inc has been attempting to spin off Fullstack. According to Zovio Inc's filings with the Securities and Exchange Commission (SEC) on September 20, the sale of Fullstack was expected to generate USD 34-55 million. However, Simplilearn did not disclose the transaction's value.
Simplilearn claimed in a statement on November 28 that the acquisition of Fullstack will offer it access to over 20 university and government collaborations across the country. Fullstack Academy is a high-end boot camp provider that also offers courses in web development, cybersecurity, product management, DevOps, and data analytics.
Fullstack's purchase will also help Simplilearn scale its footprint in the Bootcamp area and drive revenue growth to USD 200 million by FY24 (2023-24), with global markets accounting for 70% of revenue growth, according to the business.
Simplilearn's operational income in FY22 was Rs 479.7 crore, up from Rs 340.9 crore in FY21. Krishna Kumar, founder and CEO (Chief Executive Officer) of Simplilearn, recently told Mint that he anticipates the company's sales to exceed Rs 1,000 crore in FY23.
According to Simplilearn, Fullstack Academy has over 300 workers dispersed around the United States, and the company's revenue is anticipated to exceed USD 30 million this year. Following the purchase, all Fullstack Academy personnel will be retained as part of the merged business, bringing Simplilearn's overall staff count to over 2,500, according to Simplilearn.
As an autonomous business entity under Simplilearn, Fullstack Academy will continue to serve its students and partners.
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