Skillsoft Pays $525 Million for SaaS Learning Platform Codecademy

IBL News | New York

Skillsoft (NYSE: SKIL) announced the acquisition of the learning platform Codecademy for $525 million in cash and stock yesterday. Earlier this year, Skillsoft acquired Global Knowledge and Pluma.

By adding Codecademy’s clients and 40 million learners, Boston-headquartered Skillsoft will host 46 million users and over 12,000 corporate customers, according to its data. The Codecademy team — mostly based in New York, where the company was founded in 2011 — will join Skillsoft.

Codecademy, an entirely SaaS business, is expected to deliver gross margins of more than 85% in 2021, with projected revenue of $42 million for 2021, up 31%, over the prior year, according to the company. In addition, the company is expected to generate a negative EBITDA of approximately $20 million in 2021.

“Codecademy will significantly expand Skillsoft’s capabilities in the high-growth Tech & Dev segment,” said Jeffrey R. Tarr, Chief Executive Officer of Skillsoft. “Strategic acquisitions are an important part of our growth strategy.”

“Together with Codecademy’s interactive, self-paced courses and hands-on learning, Skillsoft will be able to deliver even more immersive experiences through its AI-driven platform, Percipio,” said the company.

Codecademy’s customers expressed their concern about the future of the platform.

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