Degreed has acquired learning platform Pathgather, Merging the two companies that invented the learning experience platform (LXP) category. Terms of the deal, which comes just four months after Degreed appointed its new CEO, Chris McCarthy, were not disclosed.
Uniting these businesses – who are engaged with 40% of the Fortune 500 companies, either as current or potential clients – is a big leap forward on Degreed’s mission to unlock opportunity by creating better ways to build, measure and communicate people’s skills.
“This combination makes us the unequivocal leader in learning experience platforms,” said Chris McCarthy, CEO of Degreed. “Corporate learning budgets are shifting fast, and LXPs have emerged as the new operating system for employees’ training and development. Pathgather and Degreed defined this market. Now, together, we have the products, expertise, relationships and war chest we need to triple innovation, and dramatically accelerate our growth.”
With Pathgather, which is highly respected for its customer obsession, engaging user experience and elegant technology, Degreed gets an added boost to its award-winning product, engineering, and client service capabilities. Degreed plans to bring the best elements of both solutions together to create an unequaled experience for both companies’ clients and users.
All of Pathgather’s employees, including founder and CEO Eric Duffy, are joining Degreed.
“Pathgather has always been dedicated to our customers’ success, and this merger ensures that our users and clients will now enjoy an even better product and experience, with the same level of continued dedication,” said Eric Duffy, CEO of Pathgather. “Joining forces with Degreed plugs us into the biggest and most vibrant community of innovative learning and HR executives in the world. We’re excited to tap into Degreed’s experience, insights and resources.”
“The learner experience is fundamental to learner engagement and knowledge retention, which is why the learning experience market is growing at around 150 to 200 percent per year -- far outpacing the growth of any other category in the corporate learning market,” said Josh Bersin, a recognized industry expert and founder of Bersin(™) by Deloitte. “With its product, sales, and marketing expertise, Degreed has managed to take a clear lead, and this acquisition will likely accelerate its growth.”
Tyton Partners acted as financial advisor to Pathgather in the transaction.