Parchment, a PE and VC-backed EdTech company that digitizes and distributes education credential records, is on the block, sources familiar with the process told Buyouts.
First-round bids were due last week, the people said. One of the bidders is likely to have preempted the process, they said. The sale is expected to value the company at approximately $200 million, the sources said.
Goldman Sachs is advising Parchment on the sale, the people said.
Parchment, based in Scottsdale, Arizona, offers software services that enable students, educational institutions, government agencies and employers to exchange, share and manage verified credential information.
Parchment generated a strong network effect with an increased number of participants on the platform raising the value of the service, the first source said. The company generated $30 million in annual revenue, another source said.
The company raised several funding rounds since Matthew Pittinsky, CEO of Parchment, founded the company in 2003.
In March 2014, Parchment raised $35 million in Series D funding led by Canadian Imperial Bank of Commerce (CIBC). Other participants in the round included Raine Group, Sutter Rock Capital, Salmon River Capital and Novak Biddle Venture Partners.
Most recently, in April, Parchment raised $7 million in growth capital financing from CIBC Innovation Banking, the technology lending arm of CIBC.
Pittinsky, Raine Group, Salmon River and Novak Biddle did not return Buyouts’ requests for comment. Goldman Sachs, Sutter Rock, and CIBC declined to comment.
The EdTech space has seen some PE activity recently. Riverside Company wants to grow its EdTech platform through add-ons, after the firm merged OmniUpdate, an internet content management system provider for higher education clients, with Destiny Solutions.
Action Item: More on Goldman Sachs’ push into mid-market M&A and financing here.