Blackstone acquires controlling stake in Simplilearn for $250 million

Global private equity giant Blackstone will acquire a controlling stake in the online digital skilling platform Simplilearn. Blackstone is investing $250 million in primary and secondary funding, which, as per sources, will value Simplilearn at $400 million. This is Blackstone's first private equity investment in Asia in a consumer technology space, the company said.

According to Simplilearn, this investment will enable them to develop partnerships with businesses and universities. It further stated that it is expanding around the world. The company said it has been profitable for the fourth year in a row. The platform further offers over 100 programs for early to mid-career professionals in digital skills across Cloud, DevOps, Data Science, AI-ML, Digital Marketing, Cyber Security, and many more.

Krishna Kumar, Founder & CEO, Simplilearn, said, “The pandemic has only accelerated the need for digital skills and the industry has demonstrated absolute readiness for upskilling online. Hence, this is the most opportune time to take the next big leap in our journey. aim to build the world’s largest digital skilling company. We believe Blackstone can add significant value to our company because of its scale, commitment to building businesses, and global network; this will enable us to develop partnerships with businesses and universities as Simplilearn continues to expand around the world.”

The company's existing investors include Kalaari Capital, Helion Venture Partners, and Mayfield Fund. Further, this is Blackstone's "first of many such investments in Asia", a statement read. Amit Dixit, Head of Asia for Blackstone Private Equity, said, “This is Blackstone’s first private equity investment in Asia in a consumer technology company. Like many other sectors, technology is disrupting education. Education technology has been a high conviction theme for Blackstone in India and globally. ”

He further commented on Simplilearn's creative content in partnership with marquee university and industry partners. Dixit added that the partnership will result in them building a pre-eminent digital learning company.

Blackstone in EdTech

Blackstone brings global expertise in education technology. It has partnered with Aakash Educational Services and Byju’s to build India’s largest digitally enabled, an omnichannel education company. It had also acquired Ascend technology Learning, which provides educational content and software tools for students, institutions, and employers. Further, it also recently invested in Ellucian, a leading software provider to universities; and Articulate a SaaS training and development platform for companies.