IBL News

Author: IBL News

  • Thoma Bravo-Engineered Financial Operation of Instructure Got a Good Reception

    Thoma Bravo-Engineered Financial Operation of Instructure Got a Good Reception

    IBL News | New York

    Thoma Bravo-controlled Instructure Holdings Inc. (NYSE: INST) returned to the secondary market yesterday after the company that owns Canvas LMS priced its initial public offering of 12.5 million shares at $20 apiece — meaning the company estimates it will raise $250 million, mostly intended to cut its debt of $778 million in the long term.

    Executives of the company rang the opening bell at the NYSE today, as shown in the pictures and video below.

    The registration statement was filed at the SEC on July 21, 2021. The offering is expected to close on July 26, 2021.

    The stock closed at $20.69, after a gain of 4.90% on its first day of trading. The market capitalization was 2.95 billion.

    It was a successful debut for Thoma Bravo, the investment equity company that took Instructure private last year in a deal valued at $2 billion. The Salt Lake City, Utah – based start-up first went public four years ago.

    The finance company will own 88% of the stock after the offering, or 87% if the overallotment option is exercised in full. Instructure granted the underwriters a 30-day option to purchase up to an additional 1.8 million shares at the IPO price.

    During the first three months of 2021, Instructure had revenue of $94.0 million and a net loss of $33.1 million, according to the filing.

     

    • IBL News, July 14, 2021: Instructure / Canvas LMS Details Its IPO: A Valuation of $2.9 Billion Expected

  • edX and 2U CEOs Ensure University Partners Their Commitment on Content and Software

    edX and 2U CEOs Ensure University Partners Their Commitment on Content and Software

    IBL News | New York

    Responding to questions raised by university partners on the implications of the 2U’s purchase of edX, CEO Anant Agarwal reassured the contractual terms of the deal and said that “Harvard and MIT will continue offering courses and programs on the edX.org site.”

    In a blog post that included FAQs, Mr. Agarwal insisted on the idea that Open edX software — that will power the 2U’s edX.org portal — will remain under the umbrella of MIT and Harvard, ensuring “is continually improved, remains open-source, and powers a vibrant open source community.”

    Moreover, he added: “Following the closing, 2U expects to be a significant contributor of code to the Open edX platform, and the transaction is expected to increase the impact that Open edX can have in supporting learning outcomes around the world.”

    In a series of tweets and retweets, the CEO of 2U (NASD: TWOU), Chip Paucek confirmed Anant Agarwal’s views: “Anant’s post is so important. This is everything. Our Shared Mission: A Strong Foundation for an Exciting Future.”

    Two of Anant Agarwal’s retweeted posts stated:

    • “Moving forward, @edXOnline, @2Uinc, and our combined partners will only expand upon our impact, and continue to enable innovation in higher ed as we enter the post-COVID world”

    • “I am delighted to share these details about the commitments being made to further the @edXOnline mission. For me, these commitments are the foundation of our entire combination with @2UInc.” 

    Several universities that partner with edX or use their open-source software had discussions in the last weeks about the transaction, adopting a hold position until learning more about the significance of 2U buying edX.

    “We have contractually committed for five years, and we see no reason why edX and 2U would not still continue these activities beyond five years, as the commitments are so in line with our shared long-term vision and mission,” wrote edX’s CEO.

     

  • Skillsoft Reduces Its Long-Term Debt by $130M and Increases Cash Flow for Acquisitions

    Skillsoft Reduces Its Long-Term Debt by $130M and Increases Cash Flow for Acquisitions

    IBL News | New York

    Boston-based corporate training Skillsoft Corp. (NYSE: SKIL) announced yesterday it successfully completed its debt refinancing. Now the company has $480 million of long-term debt outstanding.

    A press release indicated: “The company closed a new $480 million senior secured term loan B facility. This facility, along with cash on hand, will be used to refinance and repay the company’s existing term loan facilities, thereby reducing long-term debt by approximately $130 million.”

    “The new term loan B facility reduces Skillsoft’s interest rate by 300 basis points and extends its maturity from 2025 to 2028. Together, the refinancing and debt paydown will decrease the company’s annual interest payments by approximately $25 million.”

    Jeffrey R. Tarr, Skillsoft’s Chief Executive Officer, explained, “We are pleased to complete our refinancing, which strengthens our balance sheet, increases our free cash flow, and provides substantial financial flexibility to execute on our organic and acquisitive growth plans.”

    Last month, Skillsoft acquired professional development and executive individualized coaching SaaS platform Pluma for $22 million in cash. Pluma’s coaching experience, via in-app messaging and video sessions, will be integrated into Skillsoft’s AI-driven Percipio platform.

    Also, in June, Skillsoft started to trade in Nasdaq. On June 14, the stock opened at $10.90 per share. Yesterday, it closed at $9.10. The stock loss, about 15%, reflects that investors haven’t rewarded Skillsoft’s refinancing efforts and growth strategy to date.

    Skillsoft claims it serves training to 70% of the Fortune 1000.

    This year, courses with the most completions are:

    1. Software Data Analysis: Project Management Metrics
    2. Introduction to Artificial Intelligence
    3. Data Science Overview
    4. SQL Concepts & Queries
    5. Machine Learning
    6. Artificial Intelligence: Basic AI Theory
    7. Automation Design & Robotics
    8. Applying Predictive Analytics
    9. Data Access & Governance Policies: Data Access Governance
    10. Machine & Deep Learning Algorithms: Introduction

    Meanwhile, courses with the most consumption hours are:

    1. Business Reporting: Getting Started with Power BI Desktop for Data Analysis
    2. SQL Concepts and Queries
    3. Power BI Desktop Bootcamp: Session 1 Replay
    4. Software Data Analysis: Project Management Metrics
    5. Business Reporting: Visualizing & Merging Data in Power BI

    Most liked courses:

    1. Power BI: Getting Started with Data Analytics
    2. Introduction to Artificial Intelligence
    3. Data Science Overview
    4. SQL Concepts & Queries
    5. Power BI: Data Modeling & Visualization
    6. Relational Database Concepts
    7. Software Data Analysis: Project Management Metrics
    8. Power BI: Data Preparation
    9. Big Data Essentials
    10. Power BI: Data Sourcing

     

     

     

  • Duolingo Determines an IPO Price Between $85 and $95 Per Share and Seeks a Valuation of $4.3 Billion

    Duolingo Determines an IPO Price Between $85 and $95 Per Share and Seeks a Valuation of $4.3 Billion

    IBL News | New York

    Language-learning app Duolingo Inc (NASDAQ: DUOL) set the price range of $85 to $95 for its IPO (Initial Public Offering).

    The Pittsburgh, Pennsylvania-based startup is offering 5.1 million shares of Class A common stock (1.4 million from the selling stockholders, with these proceeds not going to the company), according to an amendment to its S-1 filing released today.

    This offering of stock would rake $433.5 million to $484.5 million.

    Duolingo would be valued between $3.41 and $4.38 billion at the maximum price, far beyond what analysts predicted.

    • IBL News, July 16: Duolingo, Valued at $2.4 Billion, Will the Next Public EdTech Startup

  • Southern New Hampshire University Continues Its Tuition-Freeze Initiative After a Decade

    Southern New Hampshire University Continues Its Tuition-Freeze Initiative After a Decade

    IBL News | New York

    Southern New Hampshire University (SNHU) announced this week the extension through 2022 of its 10-year tuition freeze. As a result, online course-based programs offered at SNHU will keep online tuition at its 2011 rate.

    “This is part of our commitment to make college more affordable and accessible for learners across the globe,” said Paul LeBlanc, University President and CEO, SNHU. “The global pandemic has created even more barriers for underserved learners worldwide, but our commitment to affordability has never wavered.”

    The Manchester, New Hampshire – based private, nonprofit institution, with 150K learners, offers a tiered tuition rate of $15,000/year, and for select programs, $10,000/year. This pricing aligns with its online tuition rates, shown below.

     

    Online Undergraduate Programs Per Credit Hour Per 3 Credit Course Annual Cost for 30 credits
    Online Undergraduate Degrees/Certificates $320 $960 $9,600
    Online Undergraduate Active Duty Military* $225 $675 $6,750
    SNHU Manchester (teaching out) $320 $960 $9,600
    SNHU Maine (teaching out)* $243 $729 $7,290
    Cooperative Education $320 $960 $9,600
    Non-Degree Seeking, Course Work Only $320 $960
    Dual Enrollment for Nursing students in the Community College System of New Hampshire (prior to graduation)* $200 $600
    Community College System of New Hampshire Nursing Graduates on or after May 2012* $260 $780
    Additional Costs: Graduation Fee ($150), Books (course-by-course)
    Most SNHU Bachelor’s degrees require 120 credit hours.

    Most SNHU Associate degrees require 60 credit hours.

     

    Online Graduate Programs Per Credit Hour Per 3 Credit Course Annual Cost for 15 credits
    Online Graduate Degrees/Certificates $627 $1,881 $9,405
    SNHU Maine (teaching out)* $375 $1,125 $5,625
    Active Duty Military* $470 $1,410 $7,050
    Additional Costs: $150 Graduation Fee, Course Materials ($ varies by course)
    Most SNHU Master’s degrees require 30-45 credit hours.
    Cohort-Based Programs Per Credit Hour Per 3 Credit Course Annual Cost for 30 credits
    Master’s Degree* $400 $1,200 $12,000
    Active Duty Military Master’s degree* $300 $900 $9,000

     

    SNHU claimed that it is committed to helping students keep costs down and borrow smarter. In 2020 its Student Financial Services team helped more than 5,500 learners reduce their loans by more than $23 million by teaching the importance of smart borrowing habits.

    The SNHU Online Bookstore has also saved learners more than $2 million by decreasing the cost of course materials, increasing the selection of e-books, and renegotiating prices with publishers while foregoing commissions.

    Another initiative is its Global Education Movement (GEM), intended to put education in the hands of some of the most underserved people in the world, bringing U.S.-accredited degrees to refugee learners in Rwanda, Lebanon, Kenya, Malawi, and South Africa.

     

     

  • Microsoft Launches Windows 365, a New Category Called Cloud PC

    Microsoft Launches Windows 365, a New Category Called Cloud PC

    IBL News | New York

    Microsoft announced this week the upcoming launch of a cloud PC service called Windows 365.

    This Chromebook-like tool will allow users to access Windows 10 from the cloud. It will be available for business users on August 2, 2021.

    “This is really just an evolution of existing remote desktop services,” said Frederic Lardinois from Techcrunch.

    On the other hand, Microsoft already offers Azure Virtual Desktop, which gives businesses the option to let their employees access a Windows PC in the cloud. Windows 365 seems to be far easier to use.

    Microsoft’s CEO, Satya Nadella, described the product as a “new hybrid personal computing category, called Cloud PC.”

    He added: “Just like applications were brought to the cloud with SaaS, we are now bringing the operating system to the cloud, providing organizations with greater flexibility and a secure way to empower their workforce to be more productive and connected, regardless of location.”

  • Duolingo, Valued at $2.4 Billion, Will the Next Public EdTech Startup

    Duolingo, Valued at $2.4 Billion, Will the Next Public EdTech Startup

    IBL News | New York

    Language-learning app Duolingo will be the next high-profile edtech company to become public and start trading in the Nasdaq — under the ticker symbol “DOUL.”

    It also will be the first major IPO from Pittsburgh’s burgeoning tech ecosystem, influenced by the presence of The Carnegie Mellon University, known for its computer science programs.

    Founded in 2011 and headquartered in the historic Pennsylvanian steel town, the company filed for an initial public offering last June 29. Duolingo was last valued at $2.4 billion after raising $183 million from investors, including General Atlantic and Kleiner Perkins.

    On its S-1 prospectus, Duolingo claims 40 million monthly active users and over 500 million downloads. It shows that its revenue more than doubled in the first quarter this year until $55.4 million. In the same period, net losses widened to $13.5 million from $2.2 million a year ago.

    In 2020, its revenue was $161.7 million, representing 129% year-over-year growth.

    As of the end of March 2021, it had 1.8 million paid subscribers — using the Duolingo Plus ad-free version of the platform. Last year, during the outbreak of the pandemic, it attracted 30 million new users.

    In terms of the revenue sources, over 72% comes from subscriptions to Duolingo Plus, 17% from advertising, and 10% from the Duolingo English Test and other revenue.

    Duolingo currently offers courses in 40 languages, including endangered languages such as Navajo and fictional languages from TV shows like Star Trek and Game of Thrones. More people learning certain languages, such as Irish and Hawaiian, on the company’s app than there are native speakers of those languages worldwide.

    The startup was founded in 2011 by two engineers, Guatemala-born Luis von Ahn and Swiss Severin Hacker. The co-founders met at Carnegie Mellon University, where Luis was a professor in the computer science department and Severin was his Ph.D. student.

  • Federal Budget on Higher Ed for 2022 Will Include a Substantial Increase in Student Aid

    Federal Budget on Higher Ed for 2022 Will Include a Substantial Increase in Student Aid

    IBL News | New York

    Federal higher education programs for the fiscal year 2022 would include a substantial increase in student financial aid and science research, according to the House Appropriations Committee’s draft of the funding bill. This projected spending aligns with President Biden’s budget, according to a report published by Inside of Higher Ed this week.

    The legislation would provide $27.2 billion for federal student aid programs. Another $3.43 billion will go to higher education programs. It means an increase of $889 million from the fiscal year 2021 and $122 million above President Biden’s budget request.

    The bill would increase the maximum annual Pell Grant award by $400. The funding for the National Institutes of Health will increase to $49 billion from up to $42.5 billion from the fiscal year 2021.

    However, the bill might suffer changes as Republicans in Congress disagree with the spending levels, as well as with the repeal of the Hyde Amendment that bars the use of federal funds for abortions.

    • Inside Higher Ed, July 13: Biden’s Higher Ed Budget Moves Ahead in House

  • Instructure / Canvas LMS Details Its IPO: A Valuation of $2.9 Billion Expected

    Instructure / Canvas LMS Details Its IPO: A Valuation of $2.9 Billion Expected

    IBL News | New York

    Thoma Bravo-controlled Instructure Holdings Inc., the owner of the leading Canvas LMS, announced yesterday the terms of its initial public offering (IPO) in an amended prospectus filed to the SEC.

    Private equity firm Thoma Bravo is offering 12.5 million shares of its common stock. The IPO price will be between $19.00 and $21.00 per share.

    This would allow the company to raise net proceeds of about $228.1 million at a $20 midpoint. That funding would help cut its debt: $778 million in the long term. Educational consultant Phil Hill wrote that “this is a move by Bravo to manage the debt the company took on as part of the purchase.”

    Thoma Bravo will still own the vast majority of shares in Instructure after this IPO, using a complex system of holding companies, stock splits, and dilutions plans.

    The actual public offering would lead to an estimated raise of $250 million.

    Those offered shares are a small part of the total number of shares, however, and Thoma Bravo will retain the rest.

    After the offering, Thoma Bravo will own around 87% of the stock. “As a result, we expect to be a “controlled company” within the meaning of the corporate governance standards of NYSE,” said the company in the prospectus.

    Utah-based Instructure’s (NYSE: INST) expects to be valued at up to $2.91 billion, according to MarketWatch. In March 2020, private equity firm Thoma Bravo took Instructure private in a deal valued at about $2 billion.

    During the first three months of 2021, Instructure had revenue of $94.0 million and a net loss of $33.1 million, according to the filing.

    The underwriters of the IPO have reserved 5% of the stock to be offered in the IPO to be sold to the senior leadership of the company through a directed sale program.

  • DoD and MIT Release an Educational Platform for Manufacturing Engineers

    DoD and MIT Release an Educational Platform for Manufacturing Engineers

    IBL News | New York

    The Department of Defense (DoD) and MIT launched this month an innovative platform to educate engineering students, professionals, and technicians on advanced manufacturing technologies.

    The platform called ManufacturingWorkforce.org displays to date six on-demand, self-paced photonics courses, developed in partnership with AIM Photonics:

    • Integrated Photonics Test: Passive Devices
    • Photonic Integrated Circuits: Sensors
    • Photodetectors and Modulators for Silicon Photonics
    • Understanding Cost and Environmental Impacts of Photonics
    • Integrated Photonics Test: Active Devices
    • Design of Microring Resonators and Filters: from Theory to Implementation

    Each course features top instructors, including MIT professors, Naval Research Laboratory scientists, and private-sector engineers.

    Five additional integrated photonics courses will be added this Summer.

    Resources on flexible hybrid electronics (FHE) will be added to the platform in the future.

    “The platform is a tangible example of the Department’s commitment to educating the next generation of U.S. science and technology leaders,” said Ms. Barbara McQuiston, performing the duties of the Under Secretary of Defense for Research & Engineering.

    “I am extremely grateful that DoD is partnering with MIT for this venture. Our MIT colleagues understand the value of public-private partnerships to foster technological talent and to ensure the continued dominance of the U.S. research and engineering enterprise.”

    “This new platform provides an excellent career-building resource for students and professionals in advanced manufacturing technologies,” said Robert Gold, Director of OUSD(R&E)’s Technology and Manufacturing Industrial Base Office.

    “A critical component of the institutes’ work is promoting student education and workforce development, which is key to maintaining a strong U.S. industrial base that can design and manufacture the cutting-edge technology our Warfighters need,” said Robert Gold.

    Built on the IBL Platform with Open edX technology, the platform has been developed by the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)), in partnership with MIT’s Initiative for Knowledge and Innovation in Manufacturing (IKIM).

    [Disclosure: IBL Education, the parent of this news service, powers the platform and provides filming and development services for the courses.]