Comprehensive M&A data with integrated detailed company information

Churchill II to acquire Skillsoft, Global Knowledge
Posted on Wednesday, 14 October 2020 12:37
Churchill Capital Corporation II (Churchill II) is acquiring Software Luxembourg Holding, the educational technology group better known as Skillsoft, for a value of USD 1.30 billion. Following the merger, the combined company will acquire information technology (IT) and professional skills development provider Global Knowledge Training for USD 233.00 million. The two deals are worth a total USD 1.50 billion and will create an entity that would operate as Skillsoft and be listed on the New York Stock Exchange. It is expected to be a leading digital education company with a comprehensive suite of content; customised knowledge journeys; accessible modalities; and an expanded course portfolio of next-generation, on-demand and virtual content for enterprise learning. Churchill II noted: “At a time when digital learning has never been more relevant in driving the success of organisations, Global Knowledge adds scale to Skillsoft’s immersive and engaging, learner-centric platform with its extensive IT course portfolio and global consumer reach”. Together, they will be able to help customers adapt to the unprecedented pace in response to the global pandemic, growing skills gap and evolving workplace needs. As a combined entity, it intends to significantly increase scale through organic growth and acquisitions and extend its leadership position. Its client base will include more than 70.0 per cent of Fortune 1000 companies and over 45.00 million users across content platforms. Terms of the deal include Churchill II contributing up to USD 697.00 million of cash raised during its June 2019 initial public offering. In addition, the special purpose acquisition company intends to bring in more than USD 170.00 million through private investment in public entity (PIPE) commitments. This includes USD 100.00 million from Prosus. Churchill II is buying Global Knowledge from Rhône Capital for up to 6.00 million warrants at an exercise price of USD 11.50 apiece in the combined company. This backer has also agreed to invest USD 50.00 million in additional stock at USD 10.00 each, subject to certain conditions and the terms of the related subscription agreement. Additionally, Lodbrok Capital has committed USD 20.00 million in connection with the Global Knowledge transaction. Upon closing, Churchill II’s shareholders are expected to own 65.0 per cent of the combined entity, with Skillsoft and PIPE investors holding 22.0 per cent and 13.0 per cent, respectively. The resulting group will have USD 463.00 million of net debt, or 2.3x adjusted earnings before interest, tax, depreciation and amortisation. © Zephus Ltd