Wednesday, August, 04, 2021 11:07:14

Blackstone plans to acquire majority stake in ed-tech firm Simplilearn

Global private equity firm Blackstone has reportedly planned to acquire a majority stake in the digital skills learning platform Simplilearn. This move comes three months after the sale of Aakash Educational Services to Byju’s for close to USD 1 billion, which was the biggest ed-tech deal in India.

Simplilearn, the ed-tech firm based in Bengaluru, India, and San Francisco, United States is financially supported by Helion Venture Partners, Kalaari Capital, and Mayfield Fund.

Blackstone will obtain a controlling stake in the ed-tech company for an enterprise value of USD 350 million. The official announcement regarding this deal will be made soon, as apparently stated by a subject matter expert.

Under this deal, the investors Helion Ventures, Mayfield, and Kalaari Capital will make a complete exit. However, Chief Executive Officer and Founder Krishna Kumar is likely to stay with the organization, as supposedly commented by another source with knowledge of the matter.

Currently, Kalaari, Mayfield, and Helion hold a combined stake of 57 percent in Simplilearn.

A third source supposedly commented that Mr. Kumar is looking forward to making the firm the largest digital skills company in the world, by partnering with an ed-tech expert like Blackstone.

The expert also added that the education sector is witnessing new themes and that Blackstone sees the growth potential of vocational training. Professionals focused on improving their digital skills have been the newest trend post-COVID-19 and digital skill learning platforms have been their go-to place.

Across the world, Blackstone has invested in ed-tech companies like Ellucian, Ascend Learning, and Articulate.

Simplilearn supposedly commented that investment firms are always eager to talk with the company, as it is one of the leading players in the ed-tech sector.

Simplilearn declined to comment about the Blackstone deal. However, the company claimed that it would address the matter should the deal take place.

Source credits:

https://www.moneycontrol.com/news/business/blackstone-to-acquire-majority-stake-in-top-upskilling-ed-tech-firm-simplilearn-7189271.html