Corporate-backed online education provider Guild Education acquired US-based venture studio and consulting firm Entangled Group in an all-share deal on Tuesday.
Founded in 2015, Entangled has built an education technology-focused venture studio model that combines investments with company incubation, prototyping and advisory services for startups covering areas such as recruitment and marketing.
The deal was sized at “upwards of $80m” according to Forbes, though insiders told EdSurge it was a $150m transaction that encompassed Entangled’s operating, consulting and venture studio operations. Almost all of its employees are moving over to Guild as well.
Entangled’s founders will retain the company’s existing venture investments – which include a stake in Guild Education itself.
The investments will be spun off into a venture capital firm called Entangled Ventures which will be operated by a holding company valued at almost $200m, Entangled co-founder and president Nick Hammerschlag told Forbes.
Rachel Carlson, co-founder and chief executive of Guild Education, said: “The Covid-19 crisis has created both an unprecedented sense of urgency to up and reskill incumbent employees, and a heightened responsibility to support laid-off and furloughed workers.
“The Entangled team will enable us to quickly design, test and launch products that pair innovative technology and coaching services with transformative educational experiences.”
The deal follows $18.3m in funding for Entangled, including a $15m series B round closed in March 2019 at a valuation of almost $100m. It included family offices representing the founders of internet group Tencent and Carl Lu, a managing partner at investment firm TDM Partners.
Guild Education has raised more than $228m in funding, most recently securing $157m at a $1bn valuation, in a November 2019 series D round that included enterprise software providers Salesforce and Workday.
