Jan 29, 2021 - Economy

Varsity Tutors to be valued at $1.7 billion in SPAC deal

Dan Primack

School bus with money — Illustration: Rebecca Zisser / Axios

Nerdy, the parent company of online learning platform Varsity Tutors, announced on Friday that it will be acquired by a SPAC called TPG Pace Tech Opportunities at a valuation of $1.7 billion. Axios had previously reported on the deal talks.

Why it matters: This is the first tech SPAC deal affiliated with private equity giant TPG, and comes as more and more legacy investment firms are hopping on the blank check bandwagon.

Details: The deal includes the $450 million TPG Pace raised in its IPO, $150 million for forward purchase agreements and a fully-committed $150 million PIPE.

PIPE investors include Franklin Templeton, Healthcare of Ontario Pension Plan, Koch Industries and Learn Capital.
St. Louis-based Nerdy had raised over $100 million in venture capital funding from firms like TCV, Learn Capital and the Chan Zuckerberg Initiative. Those investors are expected to retain over a 50% stake in the company, once public.

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Varsity Tutors to be valued at $1.7 billion in SPAC deal

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