IXL to Acquire Australian Digital Instructional Provider, 3P Learning, for $135 Million
IXL Learning, a San Mateo, Calif.-based provider of digital K-12 instructional and assessment tools has agreed to acquire Australian education technology company 3P Learning in an all-cash deal worth approximately AU $189 million, or approximately US $135 million.
The transaction is subject to a shareholder vote. If passed, the deal would mark IXL’s fourth acquisition in three years, following its purchase of Vocabulary.com in March 2020, Education.com in 2019 and ABCya the year before.
Founded in 2004, 3P Learning offers a suite of supplemental digital content for math, literacy and science subjects. Its flagship products include Mathletics, a collection of math games and activities, and Reading Eggs, a literacy program for early learners. The company, based in New South Wales, claims these tools reach an estimated 5 million students across 17,000 schools worldwide.
Formerly owned by private equity firm Insight Venture Partners and Macquarie Capital, 3P Learning went public in 2014 on the Australian market at AU $2.50 a share. That price later dipped below $1 in 2016 and never climbed back to the $2-dollar mark. The proposed acquisition by IXL Learning would value each share at $1.35, according to financial terms published by 3P.
The deal would expand IXL’s existing footprint in Australia. 3P Learning’s offerings will retain their branding as distinct products, according to a company spokesperson. Should the deal pass, 3P Learning’s staff of roughly 260 employees will join IXL’s team, which has a current headcount of 474.
IXL said in a statement that its tools are used by 10 million students and in 95 of the 100 largest U.S. school districts. Like many online education companies, IXL reported a surge in traffic shortly after the pandemic outbreak closed schools in March.