Educational technology companies Global Knowledge Training and Dublin-headquarted Skillsoft are in talks to merge and simultaneously go public through Michael Klein's Churchill Capital Corp II, according to people with knowledge of the matter.
Global Knowledge's lenders have been informed about a potential combination, sources said. The company, backed by Rhone Group, provides training for International Business Machines, Cisco Systems, Microsoft, and other tech giants, according to its website.
Representatives for Global Knowledge, Skillsoft and Rhone declined to comment. Representatives for Churchill Capital Corp II didn’t immediately respond to a request seeking comment.
Both North Carolina-based Global Knowledge and Skillsoft, which has its world headquarters in Clonskeagh in south Dublin, have faced financial distress in recent months. Global Knowledge's first-lien loan due in 2021 is trading at about 55 cents on the dollar, Bloomberg data shows, while Skillsoft filed for bankruptcy in June, citing a decline in customers.
Skillsoft's restructuring plan cut its debt by about $1.5 billion and left it with $50 million of liquidity. Lenders took control of Skillsoft through the court-supervised process, exchanging their holdings for the company's reorganised equity. The company's previous equity holders, including majority owner Charterhouse Capital Partners, didn't recover anything under the plan, which was approved in August.
The reorganisation also left open the option for the company to explore a potential sale or “alternative transaction”, according to court papers. Skillsoft sought court permission to hold exclusive talks with an unnamed “interested party” and perform due diligence. The potential deal would need approval from all consenting parties including Skillsoft’s board and creditors, filings show. - Bloomberg
