Capella Acquires Another Coding School, Utah-Based DevMountain

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“MINNEAPOLIS– Capella Education Company (NASDAQ: CPLA) today announced that DevMountain, an industry-leading coding school, has become a wholly-owned subsidiary of Capella Education Company. DevMountain’s mission is to be the most accessible and impactful software coding school in the country by bringing affordability to the highest quality, hands-on education in the software coding industry. Following Capella’s recent partnership with CareerBuilder® called RightSkillSM and acquisition of Hackbright Academy, DevMountain represents a complementary platform on which to extend Capella’s leadership position in the job-ready skills market. “

“Whether through innovative post-secondary degrees or job-ready skills, individuals in this economy are looking for the most direct path between learning and improved employment outcomes without any wasted time, money or effort,” said Kevin Gilligan, Capella Education Company chairman and chief executive officer. “DevMountain’s affordable, high-quality, and leading-edge programs represent a critical link in the chain of providing consumers with innovative options to advance their careers. RightSkillSM, Hackbright, and DevMountain all serve distinct parts of the employment market and together expand Capella’s portfolio of offerings in the job-ready skills space as we look to accelerate growth.”

“Partnering with Capella is the next step for us to expand our reach of changing lives by teaching modern technical skills in demand by today’s fast-paced high-tech employers,” said Cahlan Sharp, DevMountain’s co-founder and chief executive officer. “We are passionate about coding and seek to expand our reach to more students including through online delivery options, leveraging Capella’s deep online capabilities.”

The transaction closed on May 4, 2016 for a purchase price of up to $20 million, of which $15 million was paid in cash at closing with up to an additional $5 million to be paid over a three-year period pending the achievement of certain annual revenue and operating performance metrics. For 2016, we expect DevMountain to contribute up to a point of revenue growth to Capella Education Company’s results and dilution of approximately $0.10 to $0.20 per share. DevMountain will operate as a wholly-owned subsidiary of Capella and maintain its current headquarters and management team based in Provo, Utah.

“Our two recent acquisitions, DevMountain and Hackbright, are high-quality, mission-driven software technology schools serving distinct parts of the market,” said Gilligan. “DevMountain’s priorities are affordability and staying on the leading edge of technology trends. They are aimed at entry-level developer positions and their value proposition will benefit from increased online delivery. Hackbright’s priorities are closing the gender gap in the software engineering space through education, mentorship and community. We are thrilled to have both of these organizations within our company.”

Key Facts about DevMountain

  • Founded in 2013 by Cahlan Sharp, chief executive officer; Tyler Richards, chief marketing officer; Colt Henrie, chief operating officer
  • Headquartered in Provo, UT with additional locations in Salt Lake City, UT and Dallas, TX
  • Aimed at secondary technology markets to optimize affordability for students, including free housing for immersive programs
  • DevMountain offers 12 week full-time immersive software coding programs in Web and iOS development for a total cost of $10,500, including free housing
  • DevMountain also offers $4,500 part-time programs in Web development, iOS development and UX design

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