Swedes swoop on Scottish edtech company
A second Scottish education technology company in a week has been sold to a Scandinavian rival indicating a growing level of interest in the sector.
Giglets Education, an online literacy software business, has been acquired by ILT Education, headquartered in Sweden.
More than 120,000 pupils and 40,000 teachers already use the platform which began as part of a school enterprise project before being spun out as a digital business from the University of Strathclyde.
The business has developed a suite of content for education, with more than 1,100 digital titles and a turnover of £1 million.
Giglets CEO and co-founder Craig Johnstone will remain in his role and continue to grow the business from the company’s Kilmarnock base.
The seven-figure acquisition follows a similar deal announced on Monday involving the sale of Edinburgh-based Sumdog to Nordic firm eEducation Albert.
Both deals were advised by Grant Thornton head of corporate finance in Scotland Neil McInnes, said: “The EdTech sector is really active at present with investors attracted by scalable producers and recurring revenue streams companies like Giglets can provide.
“We have been supporting the founders of Giglets over the last three years and have enjoyed watching its growth so far, and with the company now benefitting from private equity backing, I am confident its impressive growth journey will continue.”
Giglets has a core team of 12 and recently expanded internationally, with a team in Canada serving the North American market.
Mr Johnstone said: “Giglets becoming part of the ILT Education family is recognition of the robust and profitable business we’ve been to create over the last 10 years.
“This private equity backed acquisition comes as we look to accelerate our growth across the UK, Ireland and internationally and at a time when the EdTech market has never been more buoyant.”
Jakob Skogholm, CEO of ILT Education said: “This acquisition marks an important milestone in ILT’s internationalisation, particularly in the sizable and attractive UK market.
“We have been impressed by Giglets’ people, culture and products. By joining forces with Giglets, we will be able to provide a broader and stronger suite of products towards a wider group of pupils and educators, further strengthening our mission to improve literacy and promote multilingualism across the world”.
Other advisers to the sellers were Martin Aitken & Co, and Harper Macleod. The buyer was supported by the team at Alvarez & Marsal and CMS Cameron McKenna Nabarro Olswang.