A Cloud Guru Acquisition: Key Details, Impact, and What Comes Next

Pluralsight's acquisition of A Cloud Guru marks a significant milestone in the tech education sector. This $2 billion deal aims to address the growing cloud skills gap, combining the strengths of both companies to offer a comprehensive solution for cloud skill development. The merger is poised to enhance cloud maturity and innovation, benefiting enterprises globally.

What Is A Cloud Guru?

Founded in 2015, A Cloud Guru specializes in cloud certification training, offering over 400 courses and 1,800 hands-on labs. Its core services include skill assessments, structured learning paths, and certification preparation. A Cloud Guru stands out with its comprehensive course library, hands-on practice through custom cloud sandboxes, and multi-cloud learning support for AWS, Azure, and GCP. The platform is trusted by major organizations and emphasizes learning by doing with real-world scenarios.

Who Acquired A Cloud Guru?

Pluralsight is a prominent provider in the online technology education sector, offering a diverse array of courses, learning paths, and certifications. Key services include skill assessments, curated learning paths, hands-on labs, and certification preparation. The platform is highly influential, serving over 23,000 businesses, including Fortune 500 companies. Renowned for its expert-created content, Pluralsight is trusted by major organizations such as Wells Fargo and the United States Air Force for upskilling their tech teams.

When Was A Cloud Guru Acquired?

Pluralsight completed its acquisition of A Cloud Guru on July 8, 2021. This strategic move comes amid a period of rapid growth in cloud computing, where the demand for cloud skills is at an all-time high. The acquisition is timely, addressing the significant cloud skills gap identified by IT decision-makers as a critical challenge. This follows Vista Equity Partners' acquisition of Pluralsight, marking a phase of strategic expansion and consolidation in the tech education sector.

Why Was A Cloud Guru Acquired?

• Market Expansion: The acquisition of A Cloud Guru by Pluralsight is a strategic move to expand its market presence in the cloud skills development sector. A Cloud Guru serves over 2.5 million people across 4,500 organizations globally, which will now be under Pluralsight's umbrella. This significantly broadens Pluralsight's reach and customer base.
• Technology Integration: The integration involves combining A Cloud Guru’s certification courses, hands-on labs, cloud sandbox service, exams, and quizzes with Pluralsight’s existing library of cloud courses and hands-on learning experiences. This merger aims to create an all-in-one solution for cloud skill development, enhancing the technological capabilities of both platforms.
• Competitive Advantage: The acquisition positions Pluralsight as a leader in technology skill development, particularly in cloud computing. By offering a more comprehensive and integrated solution for cloud skill development, Pluralsight aims to be the trusted partner for enterprises looking to close the cloud skills gap. This strategic move is expected to drive cloud adoption and innovation within corporations, giving Pluralsight a competitive edge in the market.

Acquisition Terms

• Acquisition Price: $2 billion
• Payment Method: The payment method was not publicly disclosed.
• Key Conditions or Agreements:
  • Sam Kroonenburg, CEO of A Cloud Guru, will remain in Australia, while Ryan Kroonenburg will lead Pluralsight’s cloud division in Europe.
  • There will be no immediate changes to current contracts, support, or points of contact within A Cloud Guru.
  • The platforms of A Cloud Guru and Pluralsight will continue to be sold and supported separately during the integration process.
  • The acquisition follows Vista Equity Partners' recent acquisition of Pluralsight.
  • William Blair & Company, LLC acted as the exclusive financial advisor to Pluralsight and Vista, with Kirkland & Ellis LLP serving as legal counsel.
  • J.P. Morgan Securities LLC served as the exclusive financial advisor to A Cloud Guru, and Latham & Watkins LLP served as legal counsel.

Impact on A Cloud Guru

The acquisition of A Cloud Guru by Pluralsight has led to notable changes in operations and management. Sam Kroonenburg, CEO of A Cloud Guru, will remain in Australia, while his brother Ryan will lead Pluralsight's cloud division in Europe. This strategic alignment aims to leverage the strengths of both leaders in their respective regions. Operationally, there will be no immediate changes to current contracts, support, or points of contact within A Cloud Guru, ensuring a smooth transition for existing customers and employees.

In terms of product offerings, the merger combines A Cloud Guru’s extensive library of certification courses, hands-on labs, and cloud sandbox services with Pluralsight’s robust cloud courses and learning experiences. This integration is designed to provide a more comprehensive solution for cloud skill development, addressing the growing demand for cloud expertise. Employee reactions have been generally positive, with the team excited about the new opportunities. Customers are also optimistic, anticipating enhanced learning experiences and more robust support. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.