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Chronicles

The story behind the story

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Skillsoft, which makes training software for businesses, is going public through a SPAC merger at a $1.3B valuation after emerging from bankruptcy in August

Wall Street Journal Dave Sebastian

Context & Ripple Effects

Skillsoft's path here is unusual: a corporate training software maker that exited bankruptcy in August 2020 is re-entering public markets not through a traditional IPO but a SPAC merger, at a $1.3B valuation — a turnaround story using the blank-check route as its re-listing vehicle.

The move sits in a wider 2020 wave of companies choosing SPACs over conventional IPOs, exemplified by Skillz's $3.5B mobile-games listing weeks earlier. The route proved durable for Skillsoft: it later used its public currency for the $525M Codecademy acquisition, and the SPAC-to-public template was repeated by iLearningEngines' AI training platform in 2023 and FiscalNote's $1.3B merger in 2021.

First-order effects

  • Skillsoft gains a public listing and equity currency just two months after emerging from bankruptcy, letting it raise capital and pursue acquisitions without an underwritten IPO.
  • SPAC investors and the sponsor take on a recently bankrupt training-software company at a $1.3B valuation, a bet that the corporate e-learning category supports that price.

Second-order effects

  • The listing gives Skillsoft stock to spend on consolidation — currency it subsequently deployed on the $525M Codecademy deal, folding consumer coding education into an enterprise platform.
  • Other edtech and software companies watching the deal see the SPAC as a viable alternative to a traditional IPO, a pattern FiscalNote and iLearningEngines both followed at similar ~$1.3–1.4B valuations.

Third-order effects

  • SPACs are normalizing as the re-entry vehicle for companies that traditional IPO processes would screen out — recently bankrupt or unproven businesses — shifting which firms can access public markets and how fast.
  • Enterprise training is consolidating around publicly listed platforms that can fund acquisitions in stock, pressuring smaller standalone edtech vendors toward buyers or mergers.

The trend: SPAC mergers are becoming the default listing path for turnaround and mid-size software companies, with corporate training emerging as one of the categories consolidating fastest through them.

Discussion

  • @wolfejosh Josh Wolfe on x
    Sturgeon's Law, 90% of stuff is crap. Markets as collective sense-making OFTEN get it wrong SOMETIMES get it right— and puke up crap when fed crap. 2 things happening: -crappy co's get lots of cash, transform via M&A. -SHORT opportunity set grows big https://www.wsj.com/...
  • @jstrauss J-Strizzle on x
    PE-backed company goes from bankruptcy to public via SPAC in 2 months. What could possibly go wrong? https://twitter.com/...