With a looming $103 million (R1.4 billion) buyout from US educational technology firm 2U, South African-based online education start-up GetSmarter is ready to take on the world.
The deal was announced yesterday, with 2U and GetSmarter looking to bolster offerings in the digital higher education space.
GetSmarter offers online short courses in partnership with some of the world's most renowned higher education institutions, including the University of Cambridge, Harvard University's online learning initiative, HarvardX, Massachusetts Institute of Technology, and Africa's top three universities, University of Cape Town, University of the Witwatersrand and University of Stellenbosch Business School.
"Our 400 team members bear testament to the calibre of young South Africans. We fully believe South Africans are not only capable of playing on a world stage, but can compete with the very best around the world," said Sam Paddock, CEO of GetSmarter, in an e-mailed response to ITWeb after the deal was announced.
"We are very pleased to be joining forces with 2U. They bring both experience and capital to our business at a time in our growth trajectory that helps us serve more students and achieve excellent student outcomes at scale. Our plans don't change. We simply continue, stronger than before."
Paddock explains the start-up company was founded by his brother, father, mother and himself - Rob, Graham, Mandy and Sam Paddock.
"But that was a long time ago. Our executive team leads GetSmarter, and my brother and I count ourselves privileged to work with John Hill (chief information officer), Amy Johnson (chief of education), Ant Saunders (chief financial officer), Ryan O'Mahoney (chief marketing officer), Thelm'e Janse van Rensburg (chief of talent), Chris Vella (chief operating officer) and their broader teams."
Describing the challenges the start-up company faced before the acquisition, Paddock said: "We are focused on scaling exceptional student outcomes, and this presents many people and process challenges that our exceptionally talented GetSmarter team has been grappling with over the past few years.
"We grow our business by establishing strong partnerships with forward-thinking universities, developing premium online short courses with them, recruiting students from 150 countries around the world and then delivering outstanding student outcomes."
2U says it will acquire GetSmarter in an all-cash transaction for approximately $103 million, subject to certain purchase price adjustments, and an earn-out payment of up to $20 million in cash, subject to achievement of certain financial milestones in calendar years 2017 and 2018.
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