Skillsoft has announced that it is acquiring coding skills platform Codeacademy in a USD 525 million deal which comprises 40 per cent cash and 60 per cent stock and is the company’s biggest.

Codecademy offers free basic online courses in high-demand fields including data science, cybersecurity and AI as well as more in-depth paid versions. Spread across almost every country it has 40 million registered users.

“Codecademy will significantly expand Skillsoft’s capabilities in the high-growth Tech & Dev segment,” said Jeffrey R. Tarr, Chief Executive Officer of Skillsoft. “With the addition of Codecademy’s innovative capabilities, we will create an even more immersive online learning experience. When we combine Skillsoft’s enterprise customer base of more than 12,000 corporate customers and over 46 million learners with Codecademy’s 40 million learners, sophisticated digital marketing capability and influential brand, we expect to unlock significant revenue synergies.”

Codecademy is expected to report revenue of some USD 47 million in booking for the 2021 financial year and about USD 42 million. In order to “upsell and cross-sell across each company’s customer base”, Skillsoft plans to integrate its AI capabilities into Codecademy’s product offerings for increased customer growth and revenue synergies.

The edtech giant acquired virtual instructor-led training platform Global Knowledge during the business combination leading to its listing in June, and shortly after that picked up professional development and coaching platform Pluma.

Codecademy Founder and CEO Zach Sims said that Codecademy’s goals align with Skillsoft’s strengths and that the acquisition will drive the company’s ability to build its curriculum, scale its work with businesses, and grow globally, particularly into fast-growing international markets like India- a target market that Codecademy has been eyeing for some time.