HERNDON, Va.--(BUSINESS WIRE)--K12 Inc. (NYSE: LRN) – to be Stride, Inc. effective December 16, 2020 – has entered into a definitive agreement to acquire MedCerts, a leader in online career certification training, in a continuing buildout of Stride’s career learning solutions for lifelong learners across diverse industries.
“For so many Americans struggling to make it through these challenging times, the gap between daily reality and future opportunity can only be bridged by further education,” said Nate Davis, Chief Executive Officer and Chairman of the Board of Directors at Stride. “Our acquisition of MedCerts further solidifies Stride as a company that is innovating education delivery for diverse industries and talent, giving individuals and employers the training and resources to provide excellent healthcare services.”
Founded in 2009, MedCerts has become one of Inc.’s Fastest Growing Private Companies in America and has helped over 25,000 students gain credentials for new careers. MedCerts’ students participate in online, hands-on career training courses in healthcare and medical fields as they prepare for more than a dozen national healthcare certifications. MedCerts students have best-in-class outcomes, with exam certification pass rates of 88%. At the same time, students explore career options with the support of personal student success advisors and career coaches as they prepare to enter the workforce.
Mark Mitchell, MedCerts’ Chairman of the Board, noted, “I am so proud that through the oversight and guidance of Mitchell Family Office, and in partnership with another board member, Michael Aubrey, MedCerts grew from $5 million to almost $20 million in just under four years.”
Stride’s investment in MedCerts represents a significant step in the company’s entrance into the healthcare education sector and comes at a time when the world’s attention is laser focused on the healthcare industry. Today, the healthcare sector employs 11 percent of American workers and is projected to add nearly 2.4 million jobs, according to the U.S. Bureau of Labor Statistics. Despite these potential opportunities, individual training and traditional college options can be cost-prohibitive, and companies are experiencing a lack of skilled workers to fill job openings. MedCerts seeks to provide more individuals with access to these high-demand career opportunities and connect employers with the right talent.
“At MedCerts, we are passionate about creating opportunities for everyone to pursue a better future and a fulfilling career,” said Jason Aubrey, CEO of MedCerts. “We are proud to have the backing of a known disruptor and innovator like Stride, as we look to unlock the potential of more students who want to make a difference in their careers and in their communities.”
In addition to its online courses, the MedCerts product suite includes resources for employers to fill vacancies, host internships and externships, and arrange informal opportunities for students to shadow industry professionals and gain hands-on volunteer experience. More than 1,000 organizations have MedCerts-trained employees on staff or have created training and employment opportunities for students and employees, including CVS Pharmacy, DaVita Dialysis, Walmart, and the American Red Cross.
Stride expects to acquire MedCerts for $70 million in an all-cash transaction, plus contingent consideration that could become due in fiscal year 2022. The acquisition, which was approved by the boards of directors of Stride and MedCerts, is expected to close by the end of second quarter fiscal year 2021, subject to customary closing conditions. For reference, MedCerts’ revenue for the last twelve months ending September 30, 2020 was approximately $19 million, an increase of 38% year-over-year. Adjusted EBITDA for that same period was approximately $4 million, an increase of 49% year-over-year.
Today’s announcement coincides with the company’s acquisition of Tech Elevator, a leader in supporting individuals and companies seeking to develop in-demand coding skills and talent. For more information on this transaction, please visit news.stridelearning.com.
About MedCerts
MedCerts is a national online training provider strengthening the workforce through innovative eLearning solutions. Focused on certifications in high-demand areas of Allied Healthcare and IT, it serves individuals from all backgrounds, including the military and their families, career changers and the under- and unemployed. MedCerts delivers certification and career training through HD-quality video-based instruction, virtual simulations, games and animations, and on-the-job training through experiential learning solutions. Since 2009, the company has developed over 35 career programs, trained and up-skilled more than 25,000 individuals across the country and partnered with over 500 American job centers and more than 1,000 healthcare organizations have MedCerts trained employees on staff. For more information, visit medcerts.com.
About Stride, Inc.
Stride, Inc. (NYSE: LRN) – formerly K12 Inc. – helps students reach their full potential through inspired teaching and personalized learning. The company has transformed the teaching and learning experience for millions of people by providing innovative, high-quality, tech-enabled education solutions, curriculum, and programs directly to students, schools, the military, and enterprises in primary, secondary, and post-secondary settings. Stride is a premier provider of K-12 education for students, schools, and districts, including career learning services through middle and high school curriculum. For adult learners, Stride delivers professional skills training in healthcare and technology, as well as staffing and talent development for Fortune 500 companies. Stride has delivered millions of courses over the past decade and serves learners in all 50 states and more than 100 countries. The company is a proud sponsor of the Future of School, a nonprofit organization dedicated to closing the gap between the pace of technology and the pace of change in education. More information can be found at stridelearning.com, K12.com, destinationsacademy.com, galvanize.com, techelevator.com, and medcerts.com.
