DreamBox Learning, a leading K-12 education technology provider that pioneered intelligent adaptive learning, and Evergreen Coast Capital Corp., a private equity firm that invests in the technology sector, have signed a definitive agreement for Evergreen to acquire a majority stake in DreamBox for an undisclosed amount.
According to a press statement, TPG’s The Rise Fund will retain a significant minority stake and continue to be represented on the company’s board of directors.
DreamBox Learning is a leading K-12 education technology provider with a mission to radically transform the way the world learns. It offers schools the only dual-discipline software solution rated “Strong” by John Hopkins’ EvidenceforESSA.org in both mathematics and reading. DreamBox uniquely provides schools with high-quality adaptive learning solutions independently proven to accelerate student growth. The EdTech company also empowers educators with robust data analytics and content-specific professional development solutions to complement instruction. DreamBox currently supports approximately 6 million students and 400,000 educators in all 50 states, the District of Columbia, Puerto Rico, and throughout the United Kingdom, Australia, Canada, and Mexico.
Commenting on the development, Christian Heim, Managing Director at Evergreen Coast Capital Corp, said,
"DreamBox is a compelling extension of Evergreen’s continued investment effort in the EdTech market. We look forward to partnering with Jessie Woolley-Wilson, the entire DreamBox team, and The Rise Fund in this new chapter for the company, bringing together our expertise in data and SaaS technologies, and sustainable growth at scale."
Jessie Woolley-Wilson, President and CEO of DreamBox Learning, said in a statement,
"We are in a historic moment in the EdTech industry, and all of us at DreamBox have been inspired to see teachers embrace blended learning solutions that are proven to advance the mathematics and reading skills of students both in the classroom and at home. Evergreen not only recognizes what DreamBox has achieved but also what more our team can do for education with the right complement of engaging and personalized learning technology combined with powerful predictive and real-time analytics that empower learning guardians. Our mission is to radically transform the way the world learns, and this partnership will propel DreamBox into the next phase of growth as we expand the reach of our best-of-breed, dual-discipline solution. This milestone is a testament to our belief that we can ‘do well to do good’ as we deliver highly engaging and adaptive mathematics and reading solutions that unlock learning potential for all students."
The deal follows a record year for DreamBox on target for over $100 million in revenue and nearly 40% growth. The company also expanded its leadership team this year and acquired two companies in the English Language Arts (ELA) market to offer a dual-discipline solution.
"DreamBox demonstrates the power of those business models in which social impact and financial performance are collinear. Jessie Woolley-Wilson and her team have built a high-performing business that delivers social impact at scale," said Steve Ellis, Co-Managing Partner of The Rise Funds.
Evergreen Coast Capital is a private equity firm that operates as a subsidiary of Elliot Investment Management L.P. based in Menlo Park, California. The firm focuses on investing in the technology sector.
For the transaction, Macquarie Capital and Gibson, Dunn & Crutcher advised the DreamBox board of directors and Jamieson Corporate Finance and Williams & Connolly for the management, while SVB Technology Investment Banking acted as financial advisor to Evergreen Coast Capital Corp.