Skillsoft Bags CFIUS’ Approval for Codecademy Merger Deal

Skillsoft Corp. (SKIL) disclosed that its merger plan with Codecademy has been approved by the Committee on Foreign Investment in the United States. As per the Defense Production Act of 1950, no unresolved national security concerns remained outstanding.

Skillsoft is a provider of enterprise learning solutions that are designed to prepare organizations for the future of work, overcome critical skill gaps, drive demonstrable behavior change, and unlock the potential in people.

Deal Details

The cash and stock deal worth $525 million was announced in December 2021. Upon completion of the deal, Codecademy’s team may join Skillsoft to help build technical skills training solutions for learners globally.

The addition of Codecademy is expected to boost Skillsoft’s revenue base and be accretive to its gross margin. Further, Skillsoft expects that it will accelerate Codecademy’s growth in its first year of ownership. Further, it sees the acquisition to be accretive to EBITDA over the long term.

Stock Rating

Colliers Securities analyst initiated a Buy rating on Skillsoft with a price target of $13 (125.3% upside potential from current levels).

Consensus among analysts is a Moderate Buy based on 3 Buys and 2 Holds. The Skillsoft stock price prediction stands at $13.25 and implies upside potential of 129.61% to current levels.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Skillsoft, as 36.3% of investors on TipRanks increased their exposure to SKIL stock over the past 30 days.

Download the TipRanks mobile app now 

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. 

Related News:
APA Extends Partnership with LongPath to Monitor Methane Emissions
Microsoft Pulls Out of Talks to Acquire Mandiant — Report
HighPeak Energy’s Q4 Earnings Lag Estimates, Sales Surpass