K12 Inc, an education company that sells online schooling and curricula for pre-K through to high school students, is acquiring coding school Tech Elevator and also MedCerts, a healthcare industry workforce development and education company.
K12 Inc is also rebranding as Stride next month.
Herndon, Virginia-headquartered K12 Inc stated it expects to acquire Tech Elevator for $23.5 million in an all-cash transaction. The acquisition is expected to close by the end of second quarter of next year.
K12 Inc’s subsidiary Galvanize is also a coding school, but whereas Galvanize bootcamps enrol advanced beginners in software engineering and data science bootcamps, Tech Elevator admits students across the US with no coding experience.
Nate Davis, K12 Inc’s chairman and chief executive said: “Bringing the Tech Elevator team into the Stride ecosystem will strengthen our ability to address the nation’s technology skills gap.
“By providing training and talent to individuals and enterprises across diverse industries and in new markets, we will open a world of possibility to professionals of all skill levels, from entry-level coders to senior developers.”
At Tech Elevator’s campuses across the US in cities including Cleveland, Philadelphia, and Columbus, students learn Java and C# coding languages, complementing Galvanize’s existing curriculum. The company has an average graduation rate of 95% and a 92% job placement rate.
Tech Elevator’s co-founder and chief executive Anthony Hughes said: “Stride and Tech Elevator share a core belief in the ability of education to transform lives. Stride will accelerate our ability to help people, to strengthen communities, and to help companies grow with diverse talent. We look forward to bringing our teams together to make an even greater impact.”
Cincinnati, Ohio-headquartered Tech Elevator’s revenue for the 12 months ending 30 September 2020 was approximately $11 million, an increase of 47% year-on-year. Adjusted EBITDA for that same period was approximately $2 million, an increase of 112% year-on-year.
K12 also announced it is acquiring MedCerts, a healthcare industry workforce development and education company headquartered in Livonia, Michigan, which provides online career certification training.
Founded in 2009, MedCerts has helped more than 25,000 students gain credentials for new careers.
MedCerts’ students participate in online, hands-on career training courses in healthcare and medical fields as they prepare for more than a dozen national healthcare certifications, with an exam certification pass rates of 88%. At the same time, students explore career options with the support of personal advisors and career coaches as they prepare to enter the workforce.
Mark Mitchell, MedCerts’ co-founder and chief executive, said: “I am so proud that through the oversight and guidance of Mitchell Family Office, and in partnership with another board member, Michael Aubrey, MedCerts grew from $5 million to almost $20 million in just under four years.”
Davis added: “Our acquisition of MedCerts further solidifies Stride as a company that is innovating education delivery for diverse industries and talent, giving individuals and employers the training and resources to provide excellent healthcare services.”
Date published: 19 November 2020