Higher Education Software Giants Merge In Multimillion-Dollar Deal
An antitrust review by the U.S. Department of Justice has cleared
the merger of two of the higher education industry’s largest software vendors. In a $178 million cash deal, Washington, D.C.,-based Blackboard Inc. will purchase WebCT Inc.
Analysts say the deal will create one of the most innovative and far-reaching global software companies serving the education industry. The merger will bring together two of the top technology brands responsible for the creation and delivery of online course content and materials.
The combined customer base includes more than 3,700 higher education, K-12, government, corporate and for-profit academic institutions.
“Our merger with WebCT will ensure that we are best positioned to meet the growing demands of academic institutions as we work together to redefine the way students and faculty interact,” says Michael Chasen, the president and CEO of Blackboard.”
Eduventures Inc., a Boston-based education market research company, has estimated that, prior to their merger, Blackboard between 45 percent and 50 percent of the college course software market. WebCT managed 35 percent to 40 percent of that market.
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