Global Knowledge Acquisition: Key Details, Impact, and What Comes Next

SkillSoft's acquisition of Global Knowledge marks a significant milestone in the corporate digital learning industry. This strategic move combines SkillSoft's extensive digital learning platform with Global Knowledge's robust IT training programs, creating a comprehensive solution for corporate training needs. The merger aims to address the growing demand for digital learning solutions, especially in the evolving workplace landscape.

What Is Global Knowledge?

Founded in 1995, Global Knowledge specializes in IT training, certifications, and skills development. Its core offerings include a comprehensive range of IT training courses, certification training, e-learning subscriptions, and group training solutions. Unique selling points include industry-recognized instructor-led training, partnerships with major tech companies, and a focus on AI and future-ready skills. Additionally, Global Knowledge offers flexible delivery formats and guaranteed-to-run classes, ensuring reliability and accessibility for learners.

Who Acquired Global Knowledge?

Skillsoft is a leading provider of online employee training and learning platforms, focusing on transforming workforce capabilities through personalized learning paths, AI-powered coaching, and real-time insights. Key products include Skillsoft Percipio, Codecademy for Enterprise, and instructor-led tech training. The company is recognized for its comprehensive and customizable learning solutions, catering to various industries and skill requirements. Skillsoft's influence is evident through its partnerships and emphasis on future-proofing the workforce in an era of rapid technological change.

When Was Global Knowledge Acquired?

SkillSoft acquired Global Knowledge on June 11, 2021. This acquisition came at a pivotal moment when digital learning was becoming increasingly essential due to the COVID-19 pandemic. The pandemic accelerated the need for digital transformation and reskilling, making the merger timely and strategically important. The combined entity aims to address the global skills gap and support companies in adapting to rapid changes in the business environment, positioning itself as a leader in the corporate digital learning sector.

Why Was Global Knowledge Acquired?

• Market Expansion: The acquisition significantly broadens SkillSoft's market reach, allowing it to serve over 70% of Fortune 1000 companies and more than 45 million users. This expanded client base positions the combined entity to drive top-line growth and scale rapidly through organic growth and acquisitions.
• Technology Integration: SkillSoft benefits from Global Knowledge's robust technology skills training, which includes authorized content from major technology providers. The integration of SkillSoft's cloud-based platform, Percipio, with Global Knowledge's technical courses creates a comprehensive digital learning platform that offers multiple modalities to meet diverse learning needs.
• Competitive Advantage: The merger strengthens SkillSoft's position against competitors by creating a one-stop digital learning shop. This consolidation allows the company to leverage economies of scale, provide more efficient and effective training solutions, and deliver personalized, high-quality learning experiences. The combined entity's strong financial performance and seasoned leadership team further enhance its competitive edge in the growing training market.

Acquisition Terms

• Acquisition Price: The total combined purchase price is $1.5 billion.
• Payment Method: The transaction involved a combination of cash contributions, equity investments, and warrants. Specific details include:
  • Churchill II contributed up to $697 million of cash raised during its initial public offering.
  • An additional $170 million in common equity through private investment in public equity (PIPE) commitments.
  • Prosus committed to invest $100 million into Churchill II.
  • Consideration of up to 6 million warrants at an exercise price of $11.50 per share in the combined company.
  • Investment funds affiliated with Rhône Capital invested $50 million in additional Class A common stock at $10.00 per share.
  • Lodbrok Capital LLP committed $20 million in connection with the Global Knowledge transaction.
• Key Conditions or Agreements:
  • The transactions required approval by Churchill II and Skillsoft shareholders.
  • Receipt of regulatory approvals and customary closing conditions.
  • The Boards of Directors of Churchill II, Skillsoft, and Global Knowledge unanimously approved the respective proposed transactions.
  • The combined company will be listed on the NYSE under the ticker symbol "SKIL" starting June 14, 2021.
  • Prosus's investment received approval from the Committee on Foreign Investment in the United States (CFIUS).
  • Prosus will provide business development and investor relations support services and have the right to elect the Chairman of the combined company.
  • The combined company's capital structure will consist of approximately $463 million of net debt, or 2.3x adjusted EBITDA.

Impact on Global Knowledge

The acquisition of Global Knowledge by Skillsoft has led to significant changes in operations and management. The combined entity now operates under the Skillsoft name and is listed on the New York Stock Exchange under the ticker "SKIL." Jeffrey R. Tarr has taken the helm as CEO, while Pat Kolek, COO of lead investor Prosus N.V., serves as Chairman. This merger aims to streamline operations, harmonize sales and marketing efforts, and improve efficiency and productivity. The new board of directors includes experienced members from various sectors, ensuring robust governance and strategic oversight.

In terms of product offerings, the merger has created a comprehensive digital learning platform that combines Skillsoft's extensive eLearning content with Global Knowledge's robust IT training programs. This expanded suite of services includes in-person IT training, certification programs, and Skillsoft's cloud-based LMS, Percipio. Employees have generally expressed enthusiasm about the merger, seeing it as an opportunity for growth and innovation. Customers can expect enhanced learning experiences and a broader range of training solutions, addressing the evolving needs of the modern workforce.

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