Tech companies around the globe claim there’s a talent shortage; however, there doesn’t seem to be a shortage of liquidity for those startups attempting to bridge the gap.
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Trilogy Education, a workforce training startup that offers programs in “web development, data analytics, UX/UI design, and cybersecurity,” has been acquired by 2U, a SaaS platform for school operations, for $750 million in cash and stock, according to a press release.
It’s a near-unicorn level acquisition deal for Trilogy Education, which has, according to Crunchbase, raised a (these days) modest $80 million. The startup’s lead investors, who likely stand to gain the most from the acquisition, include Highland Capital Partners, Macquarie Group, and Exceed Capital Partners.
The acquisition is also a confirmation of a broader trend of tech training schools to garner attractive exits. Just over a year ago, General Assembly was acquired by Adecco, a Swiss staffing firm, for $413 million. WeWork also bought Flatiron School in 2017.
According to 2U’s Co-Founder and CEO Christopher Paucek, the Trilogy Education acquisition will help the company reach $1 billion in revenue by 2021. The acquisition will also nearly double 2U’s footprint, going from “36 to 68 [university ] partners.”
Illustration: Li-Anne Dias.