Jan 27, 2021 - Economy

Scoop: Varsity Tutors in talks to go public via TPG SPAC

Illustration of divide sign made up of quarters and $100 dollar bill

Illustration: Eniola Odetunde/Axios

Nerdy, the parent company of online learning platform Varsity Tutors, is in talks to be acquired by a SPAC affiliated with private equity giant TPG, Axios has learned from multiple sources.

Why it matters: In less than a year, SPAC acquisitions have evolved from a niche market into a widely-accepted alternative to initial public offerings (IPOs).

  • Varsity Tutors, based in St. Louis, is a live learning platform that includes everything from K-5 tutoring to graduate school test prep and professional certifications.
  • Nerdy has raised over $100 million in venture capital funding from firms like TCV, Learn Capital and the Chan Zuckerberg Initiative.
  • The company has not returned request for comment on the deal, which has not yet been finalized.
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