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While more and more universities are offering online degrees to expand their student bodies through cyberspace, one of the pioneers in the implementation of this trend has acquired an acquisition to expand into a new territory around vocational training and continuing education. 2U, which helps create online degree programs for a number of reputable universities, is donating $ 750 million to acquire Trilogy Education, which creates "training camps" online and in person – continuing education programs – in collaboration with universities to train those already enrolled in the sector. Manpower with technical expertise in areas such as coding, data analysis, UX / UI and cybersecurity.
The transaction, expected to close in the next 60 days, is in the form of a combination of cash and shares – $ 400 million in cash and $ 350 million in newly issued shares of 2U common shares – announced the company. This is a decent exit for Trilogy, valued at $ 545 million (according to Pitchbook) when it raised $ 50 million in June 2018. Among its investors are Highland Capital, Macquarie and Exceed, among others.
2U, on the other hand, has a market capitalization of $ 3.85 billion and is traded on the Nasdaq.
The acquisition allows 2U to consolidate its university footprint, which will be increased to 68 out of its previous 36. It also offers a clear opportunity to resell and resell: people who are already embarking on degree programs can diversify to acquire more skills. training, while those who have not yet implemented comprehensive diploma services but who have created vocational training programs could now consider the possibility of transforming this experience into diplomas – all from a single provider , 2U. In general, this also opens up more room for 2U to expand into the $ 366 billion continuing education market.
It also allows him to better compete with other companies that have already implemented a two-tiered approach to e-learning, including the creation of degrees and short courses, such as Coursera (Udacity and Udemy). are among those focused on continuing education).
"[Trilogy Education] is a natural strategic element and growth driver for 2U that will extend our reach across the career continuum, deepen our relationships with new and existing partners, optimize marketing efficiencies and open a more direct channel of training and business sales for the company. We expect the addition of Trilogy will accelerate our billion-dollar turnover in one year from 2022 to 2021, "said 2U co-founder and CEO Christopher" Chip "in a statement. "Universities are increasingly trying to add practical and technical skills to their degrees. We simply protect the degree for the future by adding this type of technical skill. "
The presence of corporations building courses for non-profit universities and taking action in this process has been much more controversial. Firms that place education in these programs not only question the way schools (and their partners) prioritize the program, but also raise questions about higher education pricing and Benefits of these degrees can still cost more than $ 60,000, despite the lack of physical time in the classrooms. (The Huffington Post offers an excellent dive in this issue, with an interview with 2U co-founder John Katzman, who also founded the Princeton Review.)
To be honest, some problems related to higher education – such as the exorbitant cost in some countries and the fact that it is still a largely elitist enterprise with the likelihood that students will be accepted and succeed in the best Universities always in favor of a privileged family group too small – can not be completely linked to the development of e-learning courses run by for-profit companies.
And you could also argue that this should be the next step, given the evolution of technology across the board of education and the fact that information technology does not constitute not an essential skill for many institutions.
One of the potential benefits of online study programs is that they offer opportunities to a much larger group of potential students. The mass market is something Trilogy knows: it has already provided courses for 20,000 people and 1,200 instructors. On 120 programs, he says, with a focus on hands-on skills to train the local workforce and on collaboration with universities to develop these courses and connect with larger organizations. companies – customers include Google, Microsoft and Bank of America – to provide them.
"By joining forces at 2U, Trilogy Education can give universities the opportunity to reach more students, in more places, throughout their lives, while producing a positive economic impact in their regions." "said Dan Sommer, CEO and founder of Trilogy Education, in a statement. . "Trilogy and 2U share the belief that universities are essential to lifelong learning and to the needs of local economies in workforce development, both nationally and internationally. We are proud to continue our mission and continue this important work in the 2U family.
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