Blackboard to buy virtual classroom tech cos

CALIFORNIA: Blackboard Inc, a software provider for the education industry, said it would acquire privately held Elluminate Inc and Wimba Inc for about $116 million in cash to expand its virtual classroom technology offerings.

Elluminate's and Wimba's technologies allow education institutions to hold synchronous live courses over the Web, including audio, video, white board and social learning capabilities.

Together, Elluminate and Wimba serve more than 2,600 educational institutions in the United States, from kindergarten to professional education, the company said.

Blackboard expects the deal to hurt its 2010 earnings per share by about 33 cents and its adjusted earnings per share by about 25 cents.

Blackboard expects the transaction to add about 5 cents to adjusted net income per share in 2011.

The deal is expected to close in early August.

Shares of Blackboard closed at $37.90 Wednesday on Nasdaq.