2U plans to raise $300M through public offering

Lanham, Md–based edtech company 2U announced plans this week to raise about $300 million through a public stock offering.

To be precise, the company is offering 3,333,334 shares of its common stock at a price to the public of $90.00 per share. The offering, which comes four years after the company debuted on public markets, runs through Friday.

2U partners with colleges and universities to offer online degree programs. The new funding will be used for marketing, technology and content development for new and existing programming, according to a statement. It also hints at “strategic acquisition of, or investment in, complementary products, technologies, solutions or businesses.”

Along with the move to raise funding, 2U also hired a Chief Operating Officer.

Mark Chernis will transition from a nine-year-stint on the company’s board into the day-to-day executive role.

“As one of the founding board members of 2U, I’ve had the great privilege to watch [CEO] Chip [Paucek] and the 2U leadership team build one of the most innovative and successful companies in the education industry,” Chernis said in a statement.  “Now, it is with great enthusiasm that I look forward to becoming an executive of 2U and working alongside them to drive continued growth and great student outcomes.”

Chernis previously worked with education giant Pearson, which he joined in 2011 following the acquisition of instructional management software company SchoolNet, where he served in the role of president and COO. He also previously worked with the Princeton Review.

Concluding the news released so far this week, the company also dropped a music video:

Each year in preparation for @2Uinc’s annual company meeting, we produce a top-secret inspirational music video. This one is particularly special. Here's why: https://t.co/yXzNqfF6sR #NoBackRow

— Chip Paucek (@chippaucek) May 24, 2018