One of the biggest credential management platforms globally has been sold to education software company Instructure.
Parchment has exchanged over 165 million credentials through its 20 years of operation, and it will now be added to the portfolio of the Instructure Learning Platform.
The transaction was valued at around $835m with a net purchase price of $795m, in addition to a revenue contribution by Parchment of approximately $115m in 2024.
“By adding Parchment to the Instructure Learning Platform, we will provide a verifiable and comprehensive digital passport of achievement records and outcomes for learners,” said Instructure’s CEO Steve Daly.
“Together we expand the Instructure platform for existing customers, welcome new Parchment customers and open new pathways for growth with multiple new solution categories.”
While the exact specifics of how Parchment will slot into the Instructure business have not been revealed, the platform will continue to “provide a set of solutions that connect learners, institutions and employers across a learner’s journey”.
It has been confirmed that Parchment will be used by Instructure customers going forward, including for credit transfer and proof of prior learning.
The deal will also help Instructure expand its institutional relationships, and the credential company’s Award and Digitary platforms – the latter of which Parchment combined with in 2021 – will also be a pivotal part of the deal.
Matthew Pittinsky, CEO of Parchment, said the company’s mission is to “help turn credentials into opportunities”.
“With this combination [with Instructure], we will dramatically expand the credential to include rich data and more evidence of skills and learning.
“The seamless experience we envision for learners will provide easier, more equitable access to the educational and employment opportunities they seek as they build their lifelong record of learning,” Pittinsky added.
“The seamless experience we envision for learners will provide easier, more equitable access”
Instructure are the makers of Canvas, one of the biggest software platforms for educators worldwide, which it describes as the foundation of its bigger learning platform.
The deal will also broaden the platform’s footprint and “opens an estimated $2bn in Total Address Market across a number of high-growth categories”.
