The deal with Epic marks Byju’s second biggest deal.
Education technology major Byju’s said on Wednesday it has acquired the US-based children’s digital reading platform Epic in a $ 500 million deal, with the aim of making inroads deeper into the key overseas market.
The transaction comes just over three months after the Bengaluru-based start-up acquired Indian physical test preparation service provider Aakash Educational Services in a nearly $ 1 billion deal, l one of the largest in the local ed-tech space. The deal with Epic marks Byju’s second biggest deal.
Byju said the acquisition of Epic, which targets children 12 and under, will help expand its presence in the United States, as the company will have access to Epic’s rich global user base. which is said to have doubled in the last year and now includes more than 2 million teachers and 50 million children. Epic CEO and co-founder Suren Markosian and other co-founder Kevin Donahue will remain in office, however.
The US-based platform’s interactive reading model for children is in line with Byju’s long-term growth strategy which has the K-12 segment as its focus area. Founder and CEO Byju Raveendran said the company’s partnership with Epic will allow it to create engaging and interactive reading and learning experiences for children around the world.
Byju’s has also planned significant investments worth $ 1 billion for North America. The company that has made a large international foray for some time had acquired Osmo, a US-based educational game maker, in a $ 120 million deal in 2019.
“Byju’s has aggressive plans for expanding international and US markets, and the acquisition with Epic will not only result in significant investments in technology that will contribute to personalized learning for students, but also allow Byju to become a part natural to America’s learning culture, ”the company said in a statement.
Valued at $ 16.5 billion, Byju’s is backed by a host of renowned investors, including General Atlantic, the Chan-Zuckerberg Initiative, Naspers, Silver Lake and Tiger Global. The start-up claims to serve more than 100 million students around the world. Byju’s, who led the financing deals in the local ed-tech space, allocated most of the capital to appropriate mergers and acquisitions. The company is said to have acquired Indian rival Toppr in a deal valued at more than $ 100 million, in addition to aligning acquisitions of other related businesses, including Great Learning and Gradeup.
In 2020, Byju raised over $ 1 billion from investors. Earlier this year, he raised nearly $ 1.5 billion from a group of investors, including Facebook co-founder Eduardo Saverin, UBS Group and Blackstone’s B Capital Group, in installments.
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