Breaking News

K12 - to be Stride, Inc. effective December 16, 2020 - has detected unauthorized activity on its network, which has since been confirmed as a criminal attack in the form of ransomware. The company states: "Upon identifying unusual system activity, we quickly initiated our response, taking steps to contain the threat and lock down impacted systems, notifying federal law enforcement authorities, and working with an industry-leading third-party forensics team to investigate and assist with the incident. Based on our investigation to date, the attack did not affect the Learning Management System that is used to deliver educational content to students and to host student accounts - no data on the LMS was compromised nor has the delivery of services over the LMS been interrupted in any way. Our client schools - charter and district online schools - are still open, operating, and secure, as they have been since the start of the pandemic. We do believe that the attacker accessed certain parts of our corporate back-office systems, including some student and employee information on those systems, but it will take further time to determine the scope of the information accessed."

K12 Inc. - to be Stride, Inc. effective December 16, 2020 - announced that it has entered into a definitive agreement to acquire Tech Elevator, a "proven innovator in supporting individuals and companies seeking to develop in-demand coding skills and talent." Stride expects to acquire Tech Elevator for $23.5M in an all-cash transaction. The acquisition, which was approved by the boards of directors of Stride and Tech Elevator, is expected to close by the end of second quarter fiscal year 2021, subject to customary closing conditions. For reference, Tech Elevator's revenue for the last twelve months ending September 30, 2020 was approximately $11M, an increase of 47% year-over-year. Adjusted EBITDA for that same period was approximately $2M, an increase of 112% year-over-year.

K12 Inc - 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. Stride expects to acquire MedCerts for $70M 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 $19M, an increase of 38% year-over-year. Adjusted EBITDA for that same period was approximately $4 million, an increase of 49% year-over-year.

K12 Inc is becoming Stride, Inc. The new brand "reflects the company's continued growth into lifelong learning, regardless of a student's age or location." The corporate name change will become effective on Wednesday, December 16, 2020.