Byju’s, India’s one of the most valued ed-tech startups has offered a US edtech firm for complete acquisition. 2U, which is a popular educational technology company in the United States as got this offer last week from Byju’s. Currently, the valuation of 2U is around $700 million whereas Byju’s has offered a 61% premium on the current share prices of 2U. That takes the total valuation of the 2U to around $2 billion. According to sources, the deal will be all in cash and 2U is already having meetings with its board of directors to discuss further on the acquisition. If that happens, it will be one of the biggest takeovers from byju capital 200m 300mraibloomberg until now.
On Tuesday, July 5th, the 2U’s shares closed at $9.30 on Nasdaq, and Byju’s is offering $15 per share. Byju’s currently has a valuation of around $18 with some of the biggest companies and investors as its backers. Recently, a person from the Byju’s reported that the company is in talks with both 2U and Chegg and might buy one of these companies in the same year. Although the talks with Chegg’s board of directors were not successful, hence they went with the 2U. Right after this name came out, the shares of 2U rose about 17% and that might give them a little more confidence in the deal.
Byju’s has already planned for the acquisition by securing funds for the deal. According to a spokesperson from sources 1b capital 300mraibloomberg, it has got around $2.4 billion to buy either Chegg or 2U. According to them, it is not a bad deal even when they are financing this much money because 2U has a pretty good user base in the United States. While Byju’s cannot be seen very much in the international market, the deal might help them in expanding their services globally. The shares of 2U have already fallen about 80% since 2021 which went to $55 in early 2021 and now clocking around $10.
Last year, Byju’s acquired Aakash Educational Services for around $1 billion which is actually an Indian test-preparation provider. With more than 200 centers all around India, Aakash Educational Services has helped Byju’s in establishing its roots in many new services in the edtech sector. The money that was being used to acquire Aakash was put on hold by the Byju’s right now to use the funds for the 2U acquisition. The shareholders of the Aakash have approved the extension and denied sharing more details on the deal and the total cash flow made until now regarding the acquisition.
A very few people out there know about Byju’s was known as Think & Learn before but changed its name to Byju’s soon after. Right now, Byju’s is operating in more than 20 countries around the world with around 150 million students using its services. Since Byju’s is offering freemium educational services, it helps them in expanding their user base easily around different educational fields. Although media reports have claimed that Byju’s recently fired more than 500 employees and that could be due to scarcity of cash but everyone from Byju’s has distanced themselves to comment anything on it.
Well, there’s no surety that the deal will be done and we can only have our eyes on the news about it. Don’t worry because we will keep this post updated with the latest news about Byju’s 2U acquisition. Also, Byju’s is not yet listed in the stock market and after acquiring either Chegg or 2U, Byju’s might go public. Many sources capital 200m 300mraibloomberg are claiming that the company might release its IPO in the next 18 months or so. The founder of Byju’s Byju Raveendran has personally invested around $400 million in the startup to make all the operations go smooth so they can come up with an IPO.