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