US-based education technology producer HotChalk is set to receive a $230m investment from media conglomerate Bertelsmann in return for a minority stake of undisclosed size, Reuters reported on Friday.
Bertelsmann will become the largest shareholder in HotChalk following its investment. Reuters previously estimated the round would value the company at between $600m and $800m.
Founded in 2004, HotChalk provides non-profit universities and colleges with a turnkey service to offer online courses that includes features such as interactive course design, content development tools, marketing and student recruitment.
The company has set up 33 such online programs to date. In addition to its investment, Bertelsmann will assist HotChalk with its expansion efforts.
HotChalk previously received $5m in funding from private equity firm Peacock Equity in 2008. Venture capital firm Mohr Davidow invested an undisclosed amount in 2012.
Kay Krafft, CEO of Bertelsmann Education Group, said: “This strategic investment in HotChalk is an important step for the Bertelsmann Education Group and reflects our commitment to making a positive impact on education outcomes for universities and students around the world.
“HotChalk is an industry leader serving non-profit universities with best-in-class education outcomes. We are excited about partnering with the HotChalk team to meet the growing demand for high quality online graduate degrees.”