Capella Acquisition of DevMountain Extends Leadership Position in Job-Ready Skills Market
May 04 2016 - 4:10PM
Business Wire
Innovative Coding School Latest Platform in
Capella Education Company’s Strategy to Provide Most Direct Path
Between Learning and Employment
Capella Education Company (NASDAQ: CPLA) today announced that
DevMountain, an industry-leading coding school, has become a
wholly-owned subsidiary of Capella Education Company. DevMountain’s
mission is to be the most accessible and impactful software coding
school in the country by bringing affordability to the highest
quality, hands-on education in the software coding industry.
Following Capella’s recent partnership with CareerBuilder® called
RightSkillSM and acquisition of Hackbright Academy, DevMountain
represents a complementary platform on which to extend Capella’s
leadership position in the job-ready skills market.
“Whether through innovative post-secondary degrees or job-ready
skills, individuals in this economy are looking for the most direct
path between learning and improved employment outcomes without any
wasted time, money or effort,” said Kevin Gilligan, Capella
Education Company chairman and chief executive officer.
“DevMountain’s affordable, high-quality, and leading-edge programs
represent a critical link in the chain of providing consumers with
innovative options to advance their careers. RightSkillSM,
Hackbright, and DevMountain all serve distinct parts of the
employment market and together expand Capella’s portfolio of
offerings in the job-ready skills space as we look to accelerate
growth.”
“Partnering with Capella is the next step for us to expand our
reach of changing lives by teaching modern technical skills in
demand by today’s fast-paced high-tech employers,” said Cahlan
Sharp, DevMountain’s co-founder and chief executive officer. “We
are passionate about coding and seek to expand our reach to more
students including through online delivery options, leveraging
Capella’s deep online capabilities.”
The transaction closed on May 4, 2016 for a purchase price of up
to $20 million, of which $15 million was paid in cash at closing
with up to an additional $5 million to be paid over a three-year
period pending the achievement of certain annual revenue and
operating performance metrics. For 2016, we expect DevMountain to
contribute up to a point of revenue growth to Capella Education
Company’s results and dilution of approximately $0.10 to $0.20 per
share. DevMountain will operate as a wholly-owned subsidiary of
Capella and maintain its current headquarters and management team
based in Provo, Utah.
“Our two recent acquisitions, DevMountain and Hackbright, are
high-quality, mission-driven software technology schools serving
distinct parts of the market,” said Gilligan. “DevMountain’s
priorities are affordability and staying on the leading edge of
technology trends. They are aimed at entry-level developer
positions and their value proposition will benefit from increased
online delivery. Hackbright’s priorities are closing the gender gap
in the software engineering space through education, mentorship and
community. We are thrilled to have both of these organizations
within our company.”
Key Facts about DevMountain
- Founded in 2013 by Cahlan Sharp, chief
executive officer; Tyler Richards, chief marketing officer; Colt
Henrie, chief operating officer
- Headquartered in Provo, UT with
additional locations in Salt Lake City, UT and Dallas, TX
- Aimed at secondary technology markets
to optimize affordability for students, including free housing for
immersive programs
- DevMountain offers 12 week full-time
immersive software coding programs in Web and iOS development for a
total cost of $10,500, including free housing
- DevMountain also offers $4,500
part-time programs in Web development, iOS development and UX
design
Forward-Looking Statements
Certain information in this news release does not relate to
historical financial information, including statements relating to
future prospects and expectations regarding our growth, revenues,
enrollment, and operating performance, and should be considered
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The company cautions
investors not to place undue reliance on any such forward-looking
statements, which are based on information available at the time
those statements are made or management's good faith belief as of
that time with regard to future events, and should not be read as a
guarantee of future performance or results. Such statements are
subject to risks and uncertainties which could cause the company's
actual results to differ materially from historical results and
from results presently anticipated or projected. The company
undertakes no obligation to update its forward-looking
statements.
Among these risks and uncertainties are successfully integrating
DevMountain’s personnel, systems and business; keeping up with
advances and trends in software engineering desired by employers;
any failure to materially comply with the extensive regulatory
framework applicable to us; any governmental review of our
business, marketing, or financial aid practices, including by any
state attorneys general, the federal Consumer Financial Protection
Bureau, or other state regulatory bodies; effectively managing data
security risks; and managing risks associated with the overall
competitive environment and general economic conditions.
Other factors that could cause our results to differ materially
from those contained in its forward-looking statements include
those described in the “Risk Factors” section of our most recent
Annual Report on Form 10-K on file with the Securities and Exchange
Commission (SEC), and any updates or developments described in our
Quarterly Reports on Form 10-Q and other documents the company
files with the SEC.
About Capella Education CompanyFounded in 1991, Capella
Education Company (http://www.capellaeducation.com) is a leading
education provider, primarily through our wholly owned subsidiary
Capella University (http://www.capella.edu), a regionally
accredited* online university with approximately 39,000 learners as
of March 31, 2016. Capella Education Company also owns Capella
Learning Solutions (CLS) which provides online non-degree,
high-demand, job-ready skills, training solutions and services to
individuals and corporate partners; Hackbright Academy
(https://hackbrightacademy.com), the leading software engineering
school for women with a mission to increase female representation
in tech through education, mentorship and community; and Sophia
(http://www.sophia.org), an innovative learning platform leveraging
technology to support self-paced learning.
*Capella University is accredited by The Higher Learning
Commission.
About DevMountainDevMountain (http://devmountain.com) has a reputation of being
the most accessible and impactful code school in the country by
bringing affordability to the highest quality, hands-on education
in the software coding industry. Headquartered in Provo, UT,
DevMountain has additional locations in Salt Lake City, UT and
Dallas, TX.
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version on businesswire.com: http://www.businesswire.com/news/home/20160504006705/en/
Capella Education CompanyInvestor Contact:Heide
Erickson, 612-977-5172Heide.Erickson@capella.eduorMedia
Contact:Mike Buttry, 612-977-5499Mike.Buttry@capella.edu
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