E-Learning Providers Turn to Mergers for Advancement and Growth

e-learning mergers
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In today’s world, the majority of the people opt for online training because of the convenience and flexibility it offers. As every online training provider tries to step ahead in the race, they are now opting for mergers because combining resources can help them keep up with advancements.

A renowned company which offers training videos related to several different fields, in its attempt to grow, has started acquiring other competitors and expanding its library to over 2,000 videos. Their last acquisition, worth $45 million has allowed them to expand their range even more, and now it covers topics like animation, visual effects and graphic designing as well. The videos also feature big names like Walt Disney and Pixar Animation Studios.

The above is just one example. Other online training providers are also busy in buying other companies so that they can broaden their range and increase their resources. So why has this suddenly become a trend and created a rush of activity in the merger industry? In answer to this, an industry expert told us that a lot of startups have emerged in the field in the past few years. These startups do have talents and skills, but most of them lack financial resources. Acquisition is the key to this; the bigger and smaller companies set deals, and both parties get to benefit.

Let us take a look at the stats. In the year 1995, only 4% American companies used online training and now this figure has grown to 77%. During the initial days of online training, people believed it would fail, but they were proven wrong and online training is a preferred option by many individuals.

Though many acquisitions are taking place, they can be successful only when the encountered challenges are dealt with. These include offering valuable content, nurturing relationships with industry experts and getting them to take an interest in the company. In light of this, a recently merged e-learning provider told us that this was among the most difficult parts: getting in touch with the experts and requesting them to share their valuable advice.

In the time to come, we can expect to see more mergers of these sorts. As these companies unify their resources they will one day emerge as bigger brands and reshape the educational world.

Source: www.themiddlemarket.com

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