NASDAQ listed 2U Inc. have announced that they have entered into an agreement to acquire South African EdTech company, GetSmarter, for $103 million an all cash transaction. Similar to 2U, GetSmarter collaborates with universities to offer online short courses.
"GetSmarter’s pursuit of quality in online education, demonstrated by a uniquely high student course completion rate that averages 88% is truly remarkable and mirrors 2U’s mission to offer the world’s best digital education as defined by our partner students’ outcomes and satisfaction.” said Christopher Paucek, CEO and co-founder of 2U.
GetSmarter has had over 50,000 people enroll for their online courses, and more interistingly, the South African EdTech company has above average online course completion rates that average 88%, better than the course completion ratesof many MOOCs.
Paucek added that with their acquisition of GetSmarter they expect to "strengthen its position as a leader in digital education. We also expect to accelerate our growth, extend our global footprint and provide a broader suite of services by matching up more students to the right programs at the right time as they further their professional and personal development.”
The acquisition, which is expected to be finalized some time in the third quarter of 2017, is subject to certain purchase price adjustments, and has an earn-out payment of up to $20 million in cash which is subject to achievement of certain financial milestones in the calendar years 2017 and 2018.
“In 2U we have found a partner who makes us stronger. They bring deep experience and access to capital that allows us to pursue stellar growth and stand out student outcomes at scale.” said Sam Paddock, CEO and co-founder of GetSmarter.
“We look forward to better serving our University partners and their students across the globe.” added Paddock.