Professional social network operator LinkedIn Corp is to buy online education company lynda.com in a deal valued at about $1.5 billion (£1.1 billion) – it's biggest acquisition to date.
Lynda.com offers courses in a number of languages aimed at improving business, technology and creative skills. It has a large library of premium video content on various professional topics such as business skills across multiple languages.
With the integration of lynda.com and LinkedIn, users will realise their potential through the development of new skills, learning what skills are needed for the available jobs in their desired city, Ryan Roslansky, LinkedIn's head of content, wrote in a blog.
LinkedIn said it would pay about 52 per cent in cash and about 48 per cent in stock for the acquisition.
"Highly aligned" missions
The deal is expected to boost the business content Linkedin offers to its 300 million users, while supporting its hiring business, which has reached revenue growth of nearly 50 per cent in each of the last three quarters, helped by rapid expansion in international markets such as China, Reuters report.
"The mission of LinkedIn and the mission of lynda.com are highly aligned," said LinkedIn chief executive Jeff Weiner in a statement. "Both companies seek to help professionals be better at what they do."
He added the companies “believe strongly that the growing skills gap is one of the biggest challenges to the future of the global economy”.
Lynda.com was founded in 1995 as a small school in Pasadena, California. The company secured the vast majority of its nearly $290 million of investment in the past two years, the Financial Times report.
LinkedIn shares gained more than 1.5 per cent on the New York Stock Exchange after the announcement.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.