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As reported in Inside Higher Ed this week, the online program management company 2U is describing its acquisition of GetSmarter as an effort to expand into new course modalities and parts of the world, but analysts are divided on whether the company is getting its money’s worth.
The 2U said last week that it is in the process of acquiring GetSmarter, an online education start-up, for $103 million (plus up to $20 million in incentives). GetSmarter, which was founded in Cape Town but also has an office in London, will operate as an independent, wholly-owned subsidiary.
The acquisition will give 2U immediate access to several markets in which it currently does not operate. 2U picks individual graduate programs that its internal predictions suggest will be successful if offered online. As of last month, 2U had launched or announced 41 such programs from 18 colleges and universities.
GetSmarter does not offer degrees, but eight- to 16-week courses that award certificates. The courses, which are aimed at working professionals, normally cost around $2,000. GetSmarter has a couple of U.S. partner institutions -- including Harvard University and the University of Chicago -- but the rest are located in South Africa and the U.K.
Two analysts provide mixed reviews of the deal in the Inside Higher Ed report.
