Training Industry Magazine - November/December 2020 - 54

CLOSING
DEALS

SKILLSOFT AND GLOBAL KNOWLEDGE
CONSOLIDATE, CREATING A
MULTIMODAL TRAINING GIANT
BY TARYN OESCH DELONG, CPTM

Like many of us, eLearning and learning
management system (LMS) provider
Skillsoft has had quite a year.
In June, the company announced it
had filed for Chapter 11 bankruptcy. In
September, CIT Group Inc. announced
a $75 million revolving credit facility
for Skillsoft.
Then, in October, came the big
announcement: Skillsoft merged with
Churchill Capital Corp II - an acquisition
company - in a transaction valued at $1.3
billion, acquired information technology
(IT) training company Global Knowledge
for $233 million.
CREATING A ONE-STOP SHOP
It was an interesting move at a time
when many businesses are tightening
budgets due to the economic turmoil
caused by COVID-19. By offering inperson IT training and certification
programs, an LMS, and additional
eLearning content, the new company
- called Skillsoft - is branding itself a
one-stop digital learning shop. What's
more, the company plans on adding
additional acquisitions in the future to
"extend its leadership position as the
industry's largest and most profitable
digital learning company," according to
the press release.
This merger is the latest (though
possibly, in terms of dollars, biggest) in
a trend we've seen for a few years now:
content and tech companies partnering
or merging to combine their solutions,

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creating a more efficient (and often
cheaper) buying process for customers.
And, by creating one company that
offers multiple modalities, Skillsoft is now
better able to meet the diverse learning
needs of a range of client organizations.
After all, Training Industry research has
found that the more modalities in which
an organization offers training, the more
likely learners are to respond positively to
it. Learners tend to learn more effectively
when a program meets their learning
preferences. The more modalities offered,
the more likely a program is to meet
learners' preferences.
BUILDING A GLOBAL
DIGITAL FOOTPRINT
The press release reports that Skillsoft's
"client base will now include more
than 70% of Fortune 1000 companies
and more than 45 million users across
content platforms." These customers
will now have access to Skillsoft's
LMS, Percipio, its content and Global
Knowledge's catalog of technical
courses. "With an unrivaled library of
content, best-in-class platform, multimodal capabilities, global footprint,
world-class customer base and strong
balance sheet, we are well-positioned
to drive growth, profitability and
shareholder value," said chief executive
officer Jeffrey Tarr in the press release.
Training Industry research has found
that many organizations have increased
training spend this year, in an attempt
to help their employees adapt to the

changes brought by COVID-19. In
particular, these organizations have
focused their spending on providing
remote learning to their employees.
Additionally, organizations will likely
continue to deliver remote learning due
to its efficiencies and increasing proof of
its effectiveness.
This deal positions both Skillsoft and
Global Knowledge to meet buyers at
their point of need; Global Knowledge
may be able to use Skillsoft's expertise
in digital learning to expand its virtual
offerings while Skillsoft can add
Global Knowledge's critical IT training
programs to its catalog. (Skillsoft
and Global Knowledge were both
unavailable for comment.)
No one knows what we're heading
into in 2021. We don't know when the
pandemic will end, when workforces
will be back in the office or when it
will be safe to conduct large-scale,
in-person training again. What we do
know is that training will always be
vital, that digital training will continue
to play a key role in learning strategies,
and that companies will always look
for ways to make it more efficient
and effective. Mergers like Skillsoft's
and Global Knowledge's are one way
training providers are working to meet
those needs.
Taryn Oesch DeLong, CPTM, is the
award-winning managing editor for digital
content at Training Industry, Inc., and cohost of The Business of Learning, the
Training Industry podcast. Email Taryn.
Training Industry Magazine - November/December 2020

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