RLG Capital and Trinity Private Equity Group are on the prowl for add-on opportunities in the EdTech space after backing eLearning Brothers.
The pair of private equity firms invested $38 million in eLearning Brothers, enabling its simultaneous acquisitions of Trivantis and Edulence. HCAP Partners and Eagle Marsh Holdings also made minority investments in the company.
ELearning Brothers, based in American Fork, Utah, provides a complete suite of integrated training development and delivery tools, including authoring tool Lectora and virtual reality course builder CenarioVR.
The company expects to produce $20 million in revenue in 2020, according to CEO Andrew Scivally.
The deal is set to grow the company’s headcount to 100 employees once integration is completed, from 55 employees prior to the acquisition. There is and will be no layoffs, the CEO said.
As the remote-everything environment continues driving demand for e-learning services and products, eLearning Brothers has benefited. The company posted its best quarterly performance in Q1 from a top line perspective, since the company’s inception more than a decade ago.
With the acquisitions of Trivantis and Edulence, eLearning Brothers becomes a one-stop shop for electronic courses. The company now offers an authoring tool, a virtual reality course builder and a learning management system, Mark Nelson, partner at RLG Capital, told PE Hub.
“Now that we have all three of these things together, we can go to the same customers and instead of saying ‘We have this great content, but we don’t have a learning system – you have to go somewhere else for that,’ we can meet the customer needs to either buy and build their courses or custom [build] their courses,” Nelson said.
For RLG Capital, a Park City, Utah, firm, eLearning Brothers marks its sixth platform investment since 2013, when the firm was founded.
The firm is open for more M&A and is looking to make add-ons that expand eLearning Brothers’ gaming capabilities, as well as add industry specific e-courses such as in life insurance, the partner said.
“We are not going to wait because we are in the market at a time when there is more demand for these products and services than there was before, so this is a great time for us to continue to do more acquisitions,” Nelson said.
The firm has also secured future capital for new deals, according to the investor.
“The capital partners that helped us fund our first set of acquisitions have all said that they are interested in working with us on additional acquisitions so we don’t have to look for capital partners again,” he said.
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