Lanham, Md.-based edtech startup 2U is set to acquire Trilogy Education in a deal valued at $750 million in cash and stock, Brigette Fine, 2U’s communication and engagement specialist told Technical.ly.
Today, we’re excited to announce that we’ve entered into an agreement to acquire @Trilogyedu—which will expand our impact on student lives across the career curriculum continuum. Learn more: https://t.co/BAXp9OGqHV #NoBackRow pic.twitter.com/GiDyat2e1F
— 2U (@2Uinc) April 8, 2019
Trilogy Education is a workforce accelerator that currently partners with 45 universities across the globe to prepare professionals for high-growth careers in the digital economy. This transaction adds skills-based bootcamps, conducted digitally and in-person, to 2U’s offerings across a variety of technical subjects including coding, data analytics, UX/UI and cybersecurity.
2U’s Cofounder and CEO Chip Paucek shared the news in a LinkedIn article this morning.
“Trilogy’s mission-driven business is a clear and compelling strategic fit for 2U,” Paucek said in the announcement. “The addition of Trilogy’s talented team to the 2Ute community will only make us a stronger company and further cement our position as the world’s leading partner to great universities.”
More than 20,000 students have participated in Trilogy-powered programs since its inception four years ago, the company states. Graduates have gone on to be hired by more than 2,250 companies, 50 percent of which are Fortune 100. This acquisition expands 2U’s partner portfolio from 36 to 68. In February, the company also announced partnerships with Northwestern University and LinkedIn.
2U said it will retain all current Trilogy employees and enter into new employment agreements with key members of the management team. The acquisition price breakdown consists of $400 million in cash and $350 million in newly issued shares of 2U common stock. 2U has also secured $250 million in debt financing which, combined with the company’s cash on hand, will fund the entire cash portion of the purchase price. The transaction is expected to close in the next 60 days.
“Today is a big win for students and universities, and the beginning of the next chapter in 2U’s journey and mission to eliminate the back row in higher education,” Paucek said in the news release.