Private-Equity firms to acquire SkillSoft for $1.1 billion
12 Feb 2010
SkillSoft, a global leader in web based learning and development, has entered into a deal to be acquired by a consortium of private equity firms, Berkshire Partners LLC, Advent International Corp. and Bain Capital Partners LLC, for $1.1 billion in cash.
Columbia Wanger Asset Management owns a 20-per cent stake in the company, which provides internet-based training courses and software for business and information technology (IT) professionals.
SkillSoft, based in Dublin, Ireland, reported 2009 revenues of $328.5 million.
After its acquisition, SkillSoft will continue to be headquartered in Dublin and led by the current management team, including Chuck Moran as CEO.
The company has more than 6,600 courses including lessons in a variety of business, compliance, safety, and technology topics, while its SkillPort software manages corporate e-learning programmes.
Its SkillSoft Dialogue product is a virtual classroom that helps clients create and deliver live and on-demand learning sessions. SkillSoft also offers online mentoring for more than 100 IT certification exams. Its subsidiary Books24x7 allows customers to search some 19,000 engineering, IT, and business books online.
The PE firms, will pay SkillSoft shareholders $10.80 in cash for each SkillSoft ordinary share, representing a 26 per cent premium to the average closing price of SkillSoft ended on 11 February 2010 and a 49 per cent premium to the average closing price of SkillSoft over the five-year period ended on 11 February 2010.
"Skillsoft is pleased to announce this transaction, which is being unanimously recommended by the Board of Directors," said Chuck Moran, CEO of SkillSoft. "We believe the transaction is good for our shareholders as the offer represents an attractive premium relative to our trading history and, as an all cash offer, provides liquidity for shareholders. We view the transaction as an endorsement of SkillSoft's leadership and success, which has been achieved through the commitment of a dedicated team over many years."