A month after Google Capital, the search giant’s late-stage investment arm, injected $40 million into Renaissance Learning, the cloud-based education platform has been sold for $1.1 billion to private equity firm Hellman & Friedman. The deal marks the first exit of Google Capital’s portfolio.
Part of what drew Google to the 30-year-old education-tech company is its wealth of data, using millions of quizzes and assessments to tailor lesson plans to students. Google Capital’s investment gave Renaissance Learning a $1 billion valuation. Hellman & Friedman, which usually holds onto its assets for four to seven years, was attracted to Renaissance Learning’s returns. Last year, the education company saw a 20% gain in revenue.AT