Learning platform Instructure Holdings recently acquired Parchment. With this transaction, Instructure will add the world’s largest academic credentialing platform and network to the Instructure Learning Platform. This acquisition is expected to expand Instructure’s existing customer base and unlock new growth opportunities, according to a statement from Instructure.
“This acquisition represents an important next step for Instructure to serve all learners, beginning in K-12 and continuing throughout their life-long learning journey. By adding Parchment to the Instructure Learning Platform, we will provide a verifiable and comprehensive digital passport of achievement records and outcomes for learners. Together, we expand the Instructure platform for existing customers, welcome new Parchment customers and open new pathways for growth with multiple new solution categories,” said Steve Daly, CEO, Instructure, in the statement.
Parchment’s Award and Digitary platforms allow schools and universities to issue transcripts, diplomas, certificates, verifications, comprehensive learner record and other credential formats, digitally. Its Pathways platform reduces the friction in student mobility. For secondary students enrolling concurrently in college, college students enrolling across institutions and any learner seeking credit for learning they have done throughout their educational journey, the company makes the transition and transfer seamless, the statement claimed.
Increasingly, learning happens through “non-traditional” channels, and Instructure believes this is a key strategic area of growth. With Parchment, Instructure expects the platform to provide a set of solutions that connect learners, institutions and employers across a learner’s journey – from the first search for a course or programme to employment. Instructure customers will be able to navigate skill mastery, transfer credits, provide proof of prior learning and much more.
Matthew Pittinsky, PhD and Chief Executive Officer (CEO), Parchment, said in the statement, “Parchment’s mission is to help turn credentials into opportunities. With this combination, we will dramatically expand the credential to include rich data and more evidence of skills and learning. The seamless experience we envision for learners will provide easier, more equitable access to the educational and employment opportunities they seek as they build their life-long record of learning.”
Further, according to the statement, the transaction is valued at approximately $835 million. Including a tax benefit resulting from the transaction, the net purchase price is approximately $795 million, or approximately 16 times Parchment’s expected 2024 Adjusted EBITDA inclusive of anticipated run-rate cost synergies.
