Stride, Inc. to Acquire Healthcare Talent Development Pioneer, MedCerts
Acquisition of one of Inc. 5000’s fastest growing companies in the multi-billion-dollar healthcare training market
K12 Inc. (NYSE:LRN) – to be Stride, Inc. effective December 16, 2020 – has entered into a definitive agreement to acquire MedCerts, a leader in online career certification training, in a continuing buildout of Stride’s career learning solutions for lifelong learners across diverse industries.
“For so many Americans struggling to make it through these challenging times, the gap between daily reality and future opportunity can only be bridged by further education,” said Nate Davis, Chief Executive Officer and Chairman of the Board of Directors at Stride. “Our acquisition of MedCerts further solidifies Stride as a company that is innovating education delivery for diverse industries and talent, giving individuals and employers the training and resources to provide excellent healthcare services.”
Founded in 2009, MedCerts has become one of Inc.’s Fastest Growing Private Companies in America and has helped over 25,000 students gain credentials for new careers. MedCerts’ students participate in online, hands-on career training courses in healthcare and medical fields as they prepare for more than a dozen national healthcare certifications. MedCerts students have best-in-class outcomes, with exam certification pass rates of 88%. At the same time, students explore career options with the support of personal student success advisors and career coaches as they prepare to enter the workforce.
Mark Mitchell, MedCerts’ Chairman of the Board, noted, “I am so proud that through the oversight and guidance of Mitchell Family Office, and in partnership with another board member, Michael Aubrey, MedCerts grew from $5 million to almost $20 million in just under four years.”
MedCerts also connects healthcare providers with a growing pool of trained and credentialed talent. MedCerts’ training programs and on-demand content use engaging animation, immersive environments, and interactive game-based learning to prepare students for the workforce in diverse roles across the healthcare industry, including:
Sterile Processing Technician
Allied Healthcare Professional
Clinical Medical Professional
Medication Care Coordinator
Clinical Medical Specialist
Pharmacy Technician Professional
Dental Assistant and Office Administration
Pharmacy Technician Specialist
VetBloom Veterinary Assistant
Electronic Health Records and Reimbursement Specialist
Patient Care Technician
Electronic Health Records Specialist
Healthcare Administration Professional
Health Unit Coordinator
Medical Billing Specialist
Medical Front Office
Electronic Health Records
Stride’s investment in MedCerts represents a significant step in the company’s entrance into the healthcare education sector and comes at a time when the world’s attention is laser focused on the healthcare industry. Today, the healthcare sector employs 11 percent of American workers and is projected to add nearly 2.4 million jobs, according to the U.S. Bureau of Labor Statistics. Despite these potential opportunities, individual training and traditional college options can be cost-prohibitive, and companies are experiencing a lack of skilled workers to fill job openings. MedCerts seeks to provide more individuals with access to these high-demand career opportunities and connect employers with the right talent.
“At MedCerts, we are passionate about creating opportunities for everyone to pursue a better future and a fulfilling career,” said Jason Aubrey, CEO of MedCerts. “We are proud to have the backing of a known disruptor and innovator like Stride, as we look to unlock the potential of more students who want to make a difference in their careers and in their communities.”
In addition to its online courses, the MedCerts product suite includes resources for employers to fill vacancies, host internships and externships, and arrange informal opportunities for students to shadow industry professionals and gain hands-on volunteer experience. More than 1,000 organizations have MedCerts-trained employees on staff or have created training and employment opportunities for students and employees, including CVS Pharmacy, DaVita Dialysis, Walmart, and the American Red Cross.
Stride expects to acquire MedCerts for $70 million in an all-cash transaction, plus contingent consideration that could become due in fiscal year 2022. The acquisition, which was approved by the boards of directors of Stride and MedCerts, is expected to close by the end of second quarter fiscal year 2021, subject to customary closing conditions. For reference, MedCerts’ revenue for the last twelve months ending September 30, 2020 was approximately $19 million, an increase of 38% year-over-year. Adjusted EBITDA for that same period was approximately $4 million, an increase of 49% year-over-year.