Coding Bootcamp Acquisition: Bridgepoint Buys Fullstack Academy
The total payment is anticipated to be $17.5 million in cash and up to 4.75 million shares of common stock.
Founded in 1999, Bridgepoint Education is an education services provider that uses technology to help teach students through programs, technologies, and resources. The company is publicly held and currently employs almost 2,200 people.
By contrast, Fullstack offers a full-time, 13-week program or a part-time program that takes 24 weeks in cyber security training and web development. The company has had more than 2500 graduates. The company currently maintains two “Centers for Excellence” in New York and Chicago and is considering expansion through university partnerships, the provider said.
Fullstack has a standing relationship with New York City. In 2018, the company partnered with the local government to launch Cybersecurity Immersive, which it calls an “elite cybersecurity bootcamp focused on creating skilled workers to help drive economic growth in the region.” The company also launched the Tech Talent Pipeline in conjunction with the city, which is designed to create pathways for underserved communities.
Bridgepoint Acquires Fullstack: Executive Perspectives
Bridgepoint CEO Andrew Clark said of the deal:
“Fullstack Academy is a strong fit within our education technology services ecosystem with its demonstrated commitment to bridging the skills-to-employment gap within the United States. Fullstack Academy provides a platform from which we can expand into other high demand employment verticals in need of qualified professionals. Together, Fullstack Academy and Bridgepoint are an excellent fit with a common vision of the future. We are thrilled to welcome the Fullstack Academy team to Bridgepoint.”
David Yang, co-founder of Fullstack Academy said the team is excited to join Bridgepoint:
“Bridgepoint’s robust corporate partnership network compliments our expanding university partnerships, and has the opportunity to create an even tighter connection between employers and students to fill their talent pipeline.”
Coding Bootcamps: Still Hot?
Demand for coding bootcamps has only grown in recent years as shifts and technology make computer careers a more alluring job prospect. However, M&A deals may suggest that market growth rates are set to cook down a bit.
Notably, Galvanize and Hack Reactor merged their coding school businesses in July 2018; and The Adecco Group acquired digital training firm General Assembly for $412.5 million in April 2018.
Meanwhile, big companies like Amazon are funding these types of programs. The Amazon Future Engineer program was launched in November 2018 to help fund coding camps and computer science college scholarships.