Capella Education Co. on Wednesday announced the purchase of DevMountain, a school that teaches computer programming skills at locations in Utah and Texas, for up to $20 million.
Capella said it paid $15 million in cash for the firm, which is based in Provo, Utah, and would pay up to $5 million more over three years based on DevMountain reaching revenue and other operating targets.
The deal is Capella's second acquisition in two weeks that is intended to boost the Minneapolis company's reach in job-ready skills training. It's part of a broader diversification from its traditional business as a provider of online education through its main operating unit, Capella University.
"DevMountain's affordable, high-quality, and leading-edge programs represent a critical link in the chain of providing consumers with innovative options to advance their careers," Kevin Gilligan, Capella's chief executive, said in a statement.
In its expansion to skills training, Capella in January formed a venture with CareerBuilder, the jobs website company, to jointly design educational programs. Last month, it spent $18 million to acquire Hackbright Academy, a San Francisco company that teaches women programming skills to work in tech firms in Silicon Valley and elsewhere.
DevMountain offers 12 week full-time immersive software coding programs for $10,500, including housing, at its schools in Provo and Dallas. It also has part-time programs in Web and mobile product development that are priced at $4,500.
Evan Ramstad • 612-673-4241