Stride, Expands Ability to Meet Demands of IT Skills Gap with Acquisition of Tech Elevator
Tech Elevator boasts industry-leading job placement rate of 92%, as grads go on to Accenture, JP Morgan Chase, PNC, and more
K12 Inc.– to be Stride, Inc. effective December 16, 2020 – announced that it has entered into a definitive agreement to acquire Tech Elevator, a proven innovator in supporting individuals and companies seeking to develop in-demand coding skills and talent. Alongside Stride’s subsidiary Galvanize, Tech Elevator will help more individuals gain access to careers in technology by expanding on the company’s student demographic profile, geographic footprint, and hiring partner portfolio.
Where Galvanize bootcamps enroll advanced beginners in software engineering and data science bootcamps, Tech Elevator expands Stride’s total addressable market by admitting students across the country with no coding experience. Stride will now upskill learners of all experience levels to meet the needs of all types of employers, in all types of markets.
Stride’s acquisition of Tech Elevator comes at a time when the demand for IT talent is particularly strong. Despite the recession, the employment outlook for software engineers remains strong, likely due to the growth in mobile technology and cyber security. The U.S. Bureau of Labor and Statistics projects employment of software developers to grow 22 percent by 2029 across diverse industries.
“Bringing the Tech Elevator team, their passion, and expertise into the Stride ecosystem will strengthen our ability to address the nation’s technology skills gap,” said Nate Davis, Stride’s CEO and Chairman of the Board of Directors. “By providing training and talent to individuals and enterprises across diverse industries and in new markets, we will open a world of possibility to professionals of all skill levels, from entry-level coders to senior developers.”
At Tech Elevator’s campuses across the U.S. — in cities including Cleveland, Philadelphia, and Columbus — students gain mastery in Java and C# coding languages, complementing Galvanize’s existing curriculum. With Tech Elevator’s average graduation rate of 95% and a 92% job placement rate, Tech Elevator has a proven track record of succeeding in placing talent in Fortune 500 companies nationwide, including Accenture, PNC Bank, and Progressive insurance.
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“Stride and Tech Elevator share a core belief in the ability of education to transform lives,” said Anthony Hughes, Tech Elevator’s Co-Founder and CEO. “Stride will accelerate our ability to help people, to strengthen communities, and to help companies grow with diverse talent. We look forward to bringing our teams together to make an even greater impact.”
Stride expects to acquire Tech Elevator for $23.5 million in an all-cash transaction. The acquisition, which was approved by the boards of directors of Stride and Tech Elevator, is expected to close by the end of second quarter fiscal year 2021, subject to customary closing conditions. For reference, Tech Elevator’s revenue for the last twelve months ending September 30, 2020 was approximately $11 million, an increase of 47% year-over-year. Adjusted EBITDA for that same period was approximately $2 million, an increase of 112% year-over-year.
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