E-Learning:
Mergers and Acquisitions Change
E-Learning Landscape - B.C. and Canadian news:
September 7th, 2001
By Paul Stacey
In
the midst of high tech market doldrums the e-learning business marketplace is
undergoing tremendous change.
As
reported by Eduventures (http://www.eduventures.com),
in the second quarter of last year, the education industry saw 51 private
investment transactions and 3 Merger & Acquisition (M&A) deals. Fast
forward to the present. In Q2 of 2001 there were 27 private investment
transactions and 35 different M&A transactions . The education market is
consolidating.
Lets
take a look at some of the changes and consider the implications for e-learning.
One
acquisition that caught my eye was the purchase of Victoria-based SkillScape, a
leading provider of competency-based management systems, by SmartForce for a
reported $4.5 million. I had a chance to meet Colin Houghton CEO of SkillScape
several years ago and have always found SkillScape to be an interesting company.
SkillScape
(http://www.skillscape.com)
has focused on competency-based skills management solutions that enable
enterprises to assess organizational and individual knowledge gaps, relative to
strategic business goals, and then to customize learning interventions
accordingly. SkillScape has hundreds of job profiles and thousands of skill
definitions. By mapping these to SmartForce e-learning content associated with
developing those skills SmartForce can position itself to provide a system that
supports career development programs, project staffing programs and other human
capital management initiatives
Back
in April SmartForce also acquired icGlobal, a Fredericton New Brunswick
e-learning company. icGlobal (http://www.icglobal.com)
had developed a Learning Management Solution (LMS) considered to be one of the
best systems available in terms of speed and flexibility in customization and a
must for those working with multiple language environments.
SmartForce
(http://www.smartforce.com)
is the first, and currently only profitable publicly traded e-learning company
and had the highest revenues of any e-learning company in 2000. Acquisitions
like icGlobal and SkillScape will help it retain a leadership position.
Sticking
with local BC e-learning news THINQ Learning Solutions (http://www.thinq.com)
in North Vancouver announced last month a new product for mid-sized companies -
typically with up to 5,000 employees - that need learning management system (LMS)
capabilities without the management and maintenance overhead of an
enterprise-scale LMS. The new product, called the THINQ Learning Manager
provides mission critical learning management functionality, while involving
minimal upfront investment with just days to implement.
THINQ’s
new mid-tier solution is a hosted “application service provider” (ASP)
service that frees companies from having to manage and maintain new
applications. It offers e-learning solutions for mid-sized companies who need to
quickly begin managing learning and achieving their most important business
goals.
E-learning
solutions for mid-sized companies have been few and far between. If THINQ can
provide the same features and functions of an enterprise system at a fraction of
the cost they may have a real winner.
Another
amazing BC-based success story related to e-learning is Bridges.com (http://www.bridges.com)
based in Kelowna. Bridges.com has grown to become North America’s leading
provider of career and educational planning solutions. Bridges.com provides
resources that effectively help people explore career and educational options,
plan for their future, and apply for educational opportunities. Bridges revenues
are up 92% for the first six months of 2001.
For
the second year in a row Bridges.com finds itself on the Deloitte & Touche
Canadian Technology Fast 50 list. This list recognizes Canada’s fastest
growing technology companies, both public and private, from all technology
sectors, including software, life sciences, manufacturing and computer
peripherals. To hear the Bridges.com story in person come on out to the New
Media BC October Breakfast and hear Douglas Manning, CEO and President of
Bridges talk about their great success. For more info on this event see the New
Media BC web site at http://www.newmediabc.com.
Details can be found in the Events calendar.
Another
interesting Canadian e-learning deal was the acquisition of ISOPIA (http://www.isopia.com),
a privately held company located in Toronto, by Sun Microsystems. ISOPIA's
Learning Management System (LMS) is built on Sun's latest generation Java 2
Platform, Enterprise Edition so on the surface the acquisition makes a lot of
sense. To date Sun (http://suned.sun.com/index.html)
has not been a major player in the general e-learning marketplace. Purchase of
the ISOPIA LMS has the potential to change all that if they decide to market to
non-traditional Sun customers.
As
the e-learning landscape continues to evolve its great to see BC and Canada
playing a leadership role. In an effort to further the business development of
the e-learning community in BC, TechBC (http://www.techbc.ca)
is continuing to sponsor the New Media BC E-Learning Special Interest Group
(SIG). This SIG is planning a series of evening e-learning presentations every
other month. Starting in October the first session will be on "Knowledge
Management" followed by a presentation in January on "How To Make
Money Selling Content". March will feature "Blended Learning:
Synchronous and Asynchronous" and a final presentation will occur in May.
Details will be posted on the New Media BC Events Calendar (http://www.newmediabc.com).
Hope to see you there.
Paul
Stacey is the Director of Corporate Education and
Training at the Technical University of British
Columbia, a long time education professional in the high
tech private sector, and an e-learner.
Contact: Paul
Stacey
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