May 25, 2022

Zovio Sells Its Tutoring Services to GoGuardian

C Chandler-based education technology company Zovio announced that it sold its tutoring services business to GoGuardian, a K-12-focused EdTech platform, for $55 million. The sale was always likely to be complete after it came to light that Zovio leaders decided to explore selling segments of the business.

Formerly known as Bridgepoint Education, Zovio is transitioning into an educational services company after operating as a for-profit college owner. Although the company sold its tutoring services, Zovio still owns Fullstack Academy, a tech boot camp education provider.

This is not the first time that Zovio is selling a property. In 2020, Zovio sold Ashford University to the University of Arizona. Although the sale went through, as a result of a 15-year agreement, Zovio retains close ties to the university by providing marketing services and recruiting, in exchange for a cut of revenue from the online college.

…the sale of TutorMe highlights the company’s ability to fulfil its plan to pursue strategic alternatives. We believe this transaction is in the best interest of our stakeholders and will be instrumental in our plan to unlock value for our shareholders…

In an email statement, Randy Hendricks, CEO of Zovio said, “the sale of TutorMe highlights the company’s ability to fulfil its plan to pursue strategic alternatives. We believe this transaction is in the best interest of our stakeholders and will be instrumental in our plan to unlock value for our shareholders.”

However, the journey has not been smooth. A California ruling in March kicked off some of Zovio’s recent struggles. Zovio is facing a hefty fine from the California ruling, struggling with enrolment challenges at UAGC, and facing ongoing criticism about its relationship with the online college. The company is also in danger of delisting from Nasdaq if it can’t boost its closing share price above $1 for 10 straight business days.

Despite struggles, a source from GoGuardian said in a statement that the company shares a commitment with TutorMe to make learning more convenient, effective and equitable. “We’re excited to join our teams in order to better support the students, schools and districts we serve,” said the statement.

Posted in News and tagged News, Zovio, GoGuardian, EdTech, Education, University
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