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User:16912 Rhiannon/Blackboard Inc. History and acquisitions

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History

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Early history

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Blackboard Llc. was founded in 1997 by Michael Chasen and Matthew Pittinsky and began as a consulting firm contracting to the non-profit IMS Global Learning Consortium.[1] Chasen and Pittinsky started Blackboard upon leaving KPMG Consulting where they both had worked as part of the company’s Higher Education practice.[2] In 1998, the company merged with CourseInfo LLC, a small software provider that originated at Cornell University and was founded by Daniel Cane and Stephen Gilfus.[2][3][4] The combined company became known as Blackboard Inc. The first line of e-learning products was branded Blackboard CourseInfo,[5] until the CourseInfo brand was dropped in 2000.[6] The product was initially given to teachers for free to try out and then was licensed to schools.[7] The new company made a profit in its first year, and its sales in 1998 approached US$1 million.[2] Other early products included Blackboard Classroom and Blackboard Campus.[8]

By the late 1990s and early 2000s, the company had become the leading learning management system[9] This expansion was initially funded through venture capital from a number of investors, including Pearson PLC, Dell, AOL, The Carlyle Group and Novak Biddle Venture Partners.[10][11]

Overseas expansion began in the early 2000s, growing to include Asia, Australia and Europe in its service area.[12] In particular, through a partnership with a Chinese education company, Blackboard also began providing software services to many universities in China.[13]

Blackboard went public in June 2004 under the stock market ticker BBBB.[14] Sale of shares in the initial public offering raised an estimated $70 million for the company,[9] making it the second-most successful technology IPO of that year.[15]

Company expansion and buyout

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In 2006, Blackboard completed the acquisition of its largest competitor, WebCT Inc, enlarging its share of the higher education market to between 65 and 75 percent.[7][16][17]

Over the next five years, the company invested in a series of new products and acquisitions, expanding beyond the learning management system market.[18] New products released during this time include Blackboard Xythos,[19] Blackboard Connect, Blackboard Mobile, Blackboard Collaborate, and Blackboard Analytics.[20][18]

By 2011, Blackboard was used by over half of colleges and universities in the US.[21] On July 1, 2011, Blackboard agreed to a $1.64 billion buyout by an investor group led by Providence Equity Partners, which was completed on October 4.[22][23] Following the sale, Providence Equity Partners merged Edline, its K-12 learning system, with Blackboard. Edline was later renamed Blackboard Engage.[24][25]

New leadership

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Jay Bhatt succeeded Chasen as CEO of the company in October 2012.[26] Bhatt came to the company after serving as the CEO of Progress Software.[27] As CEO of Blackboard, Bhatt combined the company's product portfolio into offerings called solutions.[28][29] He also restructured the company by market (including North America and International) rather than by product, and consolidated product development and management under new executives.[30] It was reported in July 2014 that approximately 500 of Blackboard's 3,000 employees were hired between 2013 and 2014.[29]

The company's key focuses under Bhatt's leadership have been: student-driven learning solutions; investing in Blackboard Learn, the company's core product;[31] integrating the company’s portfolio of products; and building education service offerings, such as online program management.[20][32][33] In 2013, the company introduced a platform to host massive open online courses called MOOCs, and it introduced student profiles and databases in 2014.[20][31][27] Bhatt also changed the company's strategy for acquiring new businesses. Rather than purchasing competitors, Bhatt has stated he prefers to acquire companies based on their innovations.[31]

In July 2014, Bhatt announced multiple product changes, including a redesign of Blackboard's UX to an interface resembling iOS, expanding the deployment options of Blackboard Learn to include self-hosted, managed hosting and public cloud, and improvements to Blackboard's mobile app.[28][29]

As of July 2014, Blackboard serves approximately 17,000 schools and organizations.[29] It holds the highest share of the education market with 75 percent of colleges and universities and more than half of K-12 districts in the US using its products and services.[34]

As of September 2014, Blackboard had acquired MyEdu,[27] Perceptis,[29] and CardSmith,[35] and Requestec[36] under Bhatt's leadership. The acquisitions reflected Bhatt's new acquisition strategy of making investments that serve students and will lead to innovations in Blackboard's core teaching and learning products.[35][28]

Mergers and acquisitions

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Blackboard has used the acquisition of other companies as a strategy to both limit competitors and enter new markets.[33][37][17] Between 2006 and 2012, the company spent more than $500 million on acquisitions.[37]

In 2001, Blackboard acquired AT&T Campuswide and CEI Special Teams, developers of ID cards that can be used for campus commerce and security.[38] The following year, the company purchased George Washington University's course management software, Prometheus.[39] Blackboard acquired SA Cash, a student ID rewards program developed by Student Advantage, in 2003.[40]

In October 2005, the company announced that it was acquiring WebCT Inc., its largest rival in the education software industry.[41] Through the acquisition, Blackboard gained over 1,400 institutional customers as well as 274 employees.[41] In the two years leading to the merger, Blackboard's most significant growth was in the elementary and secondary education client sector.[41] According to market research company Eduventures, the merger with WebCT increased the firm's share of the higher-education market to between 65 and 75 percent.[16]

Following the purchase of WebCT, Blackboard purchased content management company, Xythos Software, Inc in November 2007.[19] The company expanded into the area of emergency phone and email notifications with the acquisition of NTI Group in 2008, which became the basis for Blackboard Connect.[42][20] In 2009, the acquisition of ANGEL Learning, an education software developer, increased Blackboard's client base to nearly 6,000 educational institutions, companies and government agencies.[43] In July of the same year, the company purchased the Stanford University student-run TerribyClever Design, LLC, whose iPhone application provided the basis for the Blackboard Mobile division to develop the service for other university campuses.[44] Blackboard then acquired Saf-T-Net, provider of mobile alerts for K-12, in March 2010.[45]

In July 2010, the company purchased both Wimba, Inc. and Elluminate, Inc., providers of online and mobile collaboration tools, to form Blackboard Collaborate. The purchase of iStrategy, a data analysis firm, in December of 2010 led to the creation of Blackboard Analytics.[18] Blackboard Student Services was developed from Presidium Inc., a provider of administrative and academic support services, which Blackboard acquired in January 2011.[46]

The company merged with Edline, a provider of online communications software for K-12 schools, after Edline's owner, Providence Equity Partners, acquired Blackboard in October 2011.[47] Edline was renamed Blackboard Engage in June 2012.[24][25]

In March 2012 Blackboard acquired two companies based on Moodle's open-source software: Baltimore-based Moodlerooms Inc. and NetSpot of Adelaide, Australia. The two companies became the basis of Blackboard's Open Source Services division.[48][49]

In January 2014, Blackboard made its first acquisition under the leadership of Jay Bhatt with the purchase of MyEdu, an Austin-based online education company, which provides education and career planning tools for college students. The acquisition was seen as Blackboard stepping toward a new focus on student-based software according to The Washington Post.[30] The acquisition was followed by the purchase of Perceptis, a provider of help desk and administrative services, in July 2014.[50][51] In August 2014, Blackboard acquired CardSmith, a company that offers cards for student credentials and on-campus payments. Through the acquisition, Blackboard acquired 200 customers as well as cloud-based services for its Blackboard Transact product.[35] In September 2014, The company acquired Requestec, a provider of Web-based Real Time Communication (WebRTC) technology that allows IP telephony, video conferencing and instant messaging directly within desktop and mobile browsers.[36]

References

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  1. ^ "GEO Interactive Re OEM Agreement". London Stock Exchange Aggregated Regulatory News Service. October 21, 1998.
  2. ^ a b c Leibovich, Mark (January 4, 1999). "Blackboard Chalks Up a Breakthrough; Its Educational Software Lets Colleges Put Classes on the Internet". The Washington Post. p. F05.
  3. ^ Darlene Darcy (9 August 2009). "Years at Blackboard an education that turns employees into entrepreneurs". Washington D.C. Business Journal. Retrieved 3 June 2013.
  4. ^ Michelle Nagler (October 16, 1997). course management "Senior's company helps to produce Web pages for college courses". Cornell Chronicle. Retrieved 28 May 2014. {{cite news}}: Check |url= value (help)
  5. ^ "Blackboard Announces Release Of Blackboard CourseInfo 2.0". Business Wire. November 2, 1998.
  6. ^ "Blackboard Aims For Standard With Building Blocks Initiative". Educational Marketer. Vol. 31, no. 33. November 20, 2000.
  7. ^ a b Timothy Burn (May 2006). "Agent of Change: Blackboard CEO Michael Chasen erases the old way of learning" (PDF). SmartCEO. Retrieved 30 May 2013.
  8. ^ Anne Kelleher (1 July 2011). "Blackboard Founders' Roots at American University". American Today. Retrieved 30 May 2013.
  9. ^ a b Burn, Timothy (May 2006). "Michael Chasen: CEO of the Year" (PDF). Washington Smart CEO. Retrieved May 15, 2011.
  10. ^ Daniels, Alex (January 29, 2001). "Big company on campus: Blackboard hopes an IPO will help it dominate the Internet education market". Washington Techway. p. 26.
  11. ^ Henry, Shannon (May 11, 2000). "Help for an Earning Curve". The Washington Post. p. E01.
  12. ^ Hughlett, Roger (August 8, 2003). "Blackboard's success may erase bad feelings about dot-coms". Washington Business Journal. Vol. 22, no. 14. p. 3.
  13. ^ Knowlton, Brian (September 1, 2003). "U.S. firm makes grade in China". The International Herald Tribune. p. 11.
  14. ^ "Fastest Growing Companies 2004: Blackboard". Washington Business Journal. Vol. 23, no. 22. October 1, 2004. p. 16.
  15. ^ Richard Gibbons (24 June 2004). "Blackboard's Screeching IPO". The Motley Fool. Retrieved 30 May 2013.
  16. ^ a b Carnevale, Dan (February 17, 2006). "Justice Department Sees No Antitrust Concerns in Blackboard's Plan to Take Over WebCT". The Chronicle of Higher Education. Vol. 52, no. 24. p. 37. {{cite news}}: Cite has empty unknown parameter: |pmd= (help)
  17. ^ a b Rip Empson (18 October 2012). "Blackboard: With Both Co-founders Now Gone, It's The End Of An Era For The Education Software Giant". TechCrunch. Retrieved 30 May 2013.
  18. ^ a b c Kolowich, Steve (February 22, 2011). "Blackboard's Next Phase". Inside Higher Ed. Retrieved April 10, 2011.
  19. ^ a b Andrea Foster (5 January 2008). "Blackboard Acquires Another Software Company". The Chronicle of Higher Education. Retrieved 28 May 2014.
  20. ^ a b c d Bill Flook (16 July 2013). "Rebuilding Blackboard: How Jay Bhatt plans to resurrect one of D.C.'s original tech startups". Washington Business Journal. Retrieved 29 May 2014.
  21. ^ Bill Flook (19 October 2012). "Michael Chasen ponders angel investing post-Blackboard". Washington Business Journal. Retrieved 30 May 2013.
  22. ^ Fitzgerald, Drew (July 1, 2011). "Providence Equity Partners To Buy Blackboard For About $1.64B". The Wall Street Journal. Retrieved August 26, 2011.
  23. ^ "Providence Equity Partners Completes Acquisition of Blackboard Inc". Blackboard Inc. Retrieved January 8, 2012.
  24. ^ a b Krista Giovacco (9 September 2011). "Providence Increases Blackboard Buyout Loan as Outflows Subside". Businessweek. Retrieved 17 May 2013.
  25. ^ a b "Our Company is getting a new name!". edline.com. Edline. 11 June 2012. Retrieved 17 May 2013.
  26. ^ Nagel, David (15 October 2012). "Blackboard CEO Chasen To Step Down". THEJournal. Retrieved 23 January 2014.
  27. ^ a b c Gregory T. Huang (2 June 2014). "Blackboard CEO Jay Bhatt on the Global Future of Edtech". Xconomy. Retrieved 2 September 2014.
  28. ^ a b c Michael Feldstein (18 July 2014). "Blackboard's Big News that Nobody Noticed". e-Literate. Retrieved 2 September 2014.
  29. ^ a b c d e Betsy Corcoran (23 July 2014). "Blackboard's Jay Bhatt Strikes Up the Brass Band". Edsurge. Retrieved 2 September 2014.
  30. ^ a b Overly, Steven (16 January 2014). "The Download: Blackboard makes first acquisition under CEO Jay Bhatt". The Washington Post. Retrieved 23 January 2014.
  31. ^ a b c Jeffrey R. Young (11 July 2014). "Blackboard May Double or Triple Spending on Software Development". The Chronicle of Higher Education. Retrieved 2 September 2014.
  32. ^ Cale Guthrie Weissman (PandoDaily). "Blackboard makes another acquisition, says it will make good on past acquisitions". 15 January 2014. Retrieved 29 May 2014. {{cite news}}: Check date values in: |date= (help)
  33. ^ a b Ki Mae Heussner (12 July 2013). "A new Blackboard? 4 ways the ed tech giant's new CEO hopes to win back market share". GigaOM. Retrieved 28 May 2014.
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  38. ^ Irwin, Neil (November 29, 2000). "Blackboard to Chalk Up 2 Acquisitions; Smart-Card Companies Augment Technology And Customer Base". The Washington Post.
  39. ^ Greg Licamele (5 March 2002). "GW's Prometheus Merges with Software Developer Blackboard Inc". By George!. Retrieved 28 May 2014.
  40. ^ "Student Advantage sells SA Cash program to Blackboard". Boston Business Journal. 3 February 2003. Retrieved 28 May 2014.
  41. ^ a b c "Makers of Online Systems Merge; Blackboard buys up rival in course-handling market". Education Week. Vol. 25, no. 9. October 26, 2005. p. 8.
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  43. ^ Kennedy, Kathleen (May 20, 2009). "Blackboard Inc.Purchases Education Software Developer". Education Week. Vol. 28, no. 32. p. 4.
  44. ^ Harlin, Kevin (January 8, 2010). "Blackboard Inc. Washington, D.C. Educational Software Maker Binds Students And Faculty". Investor's Business Daily. p. A06.
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  46. ^ Young, Jeff (January 12, 2011). "In Bid to Expand Into Student Services, Blackboard Buys Presidium". The Chronicle of Higher Education. Retrieved August 30, 2011.
  47. ^ Jeff Clabaugh (5 October 2011). "Blackboard private, merges with Edline". Washington Business Journal. Retrieved 17 May 2013.
  48. ^ Jeff Clabaugh (26 March 2012). "Blackboard makes Moodle acquisitions". Washington Business Journal. Retrieved 5 September 2014.
  49. ^ Steve Kolowich (27 March 2012). "Blackboard's Open-Source Pivot". Inside Higher Ed. Retrieved 28 May 2014.
  50. ^ Lawrence Biemiller (8 July 2014). "QuickWire: Blackboard Swallows a Small Competitor". The Chronicle of Higher Education. Retrieved 4 September 2014.
  51. ^ Roger Riddell (8 July 2014). "Blackboard expands student services with Perceptis acquisition". EducationDive. Retrieved 5 September 2014.
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