A Denver private-equity-backed firm has purchased a Baltimore edtech company that teaches universities and private businesses cybersecurity and software techniques through online exercises.
Federal Hill-based Infosec Learning was acquired by cybersecurity training firm ACI Learning on Dec. 6 in an effort by the larger firm to consolidate the cyber education market. Financial terms of the deal were not disclosed, but ACI is backed by Philadelphia private equity firm Boathouse Capital.
"Over the last seven years, we took a lot of business away from our competitors," Infosec founder Jim Kowatch said. "And if you do that enough one of them scoops you up."
Kowatch founded Infosec in the basement of his house in Federal Hill in 2015 and launched his first training programs in 2016 in partnership with Mindgrub Technologies. The company raised $1 million in financing in 2020 to further expand. The training programs walk people through a specific cybersecurity technique or software by completing hour-long tasks. The courses are supposed to accompany traditional coursework and lectures by providing a hands-on experience so students can use the skills they learn in the classroom. Infosec counts Southern New Hampshire University, Georgia State University and the Florida Virtual School System as some of the more notable of its around 500 clients.
"(This deal) gives us more scale, data and insights to enhance our learning platform that's delivering an experience that is now table stakes for individuals and organizations alike," Brett Shively, CEO of ACI Learning, said in a press release.
Infosec had a revenue in the ballpark of $10 million a year before the acquisition, Kowatch said. All 15 Infosec employees will join ACI.
“I felt like this is the right time to join a larger organization with more resources,” he added.
The Baltimore edtech industry has seen substantial growth over the past few years as the Covid-19 pandemic created a deep need for new educational products and federal money meant schools could afford to experiment with new services for students. Federal Hill company Concentric Educational Solutions raised a $5 million round from New Markets Venture Partners earlier this year to make it easier for parents and school districts to communicate.
"When you start something from absolutely nothing days like this are incredible,” Kowatch said. “It’s what every founder goes out there to do.”
