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2U to graduate with Trilogy Education
Posted on Tuesday, 09 April 2019 12:59
2U is buying Trilogy Education Services, a US-based education technology company, for USD 750.00 million.
The consideration includes USD 400.00 million in cash and USD 350.00 million in shares, which will be funded through a USD 250.00 million senior secured loan facility.
Based in New York, Trilogy Education partners with leading universities to create training programmes for those pursuing a career in the technology sector.
Its offering includes online coding, analytics and cybersecurity courses, from which students can receive certification and improve their employment prospects.
Founded in 2015, the target currently partners with 46 universities and employs more than 1,200 instructors and teaching assistants.
The deal will help grow 2U’s business and strengthen its position as a leading player in the digital education sector.
Furthermore, the acquisition allows the acquiror to gain access into new markets such as Australia and Canada, as well as consolidating its presence in existing regions, namely Mexico and Europe.
Christopher Paucek, chief executive of 2U, said the addition of the target is expected to enable the firm to hit its annual revenue target of USD 1.00 billion by 2021, a year earlier than planned.
The transaction will also increase the company’s university portfolio from 36 to 38 partners.
Paucek added: “Their business is a natural strategic fit and growth driver for 2U that will extend our reach across the career curriculum continuum, deepen our relationships with new and existing partners, drive marketing efficiencies, and open a more direct corporate training and enterprise sales channel for the company.”
Subject to the usual raft of closing conditions and regulatory approvals, the deal is slated to complete within the next 60 days.
Headquartered in Maryland, 2U is billed as a global leader in education technology.
Its brand, GetSmarter, provides online short courses for students which are designed to provide in-demand career skills.
The company’s programmes are used by some of the most prestigious schools worldwide, including Harvard University, the University of Chicago, Stanford Centre for Health Education and the Massachusetts Institute of Technology.
For the financial year ended 31st December 2018, 2U booked revenue of USD 411.80 million, up 44.0 per cent from USD 286.80 million in the preceding 12 months.
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