MORE BOOTCAMP CONSOLIDATION: Galvanize is set to acquire Hack Reactor, a San Francisco-based provider of campus-based and online coding bootcamp programs.
Financial terms of the pending acquisition were not disclosed, although it was partially financed by a new $32 million Series C round that was announced simultaneously, per Denver Business Journal. Catalyst Investors led the funding deal, with New Markets Venture Partners, ABS Capital Partners, University Ventures and the Colorado Impact Fund also participating.
This latest funding round is a dip from the company’s previous fundraise, a $45 million Series B round in 2016. In total, Galvanize has raised about $100 million in venture capital.
Founded in 2012, Hack Reactor claims it has graduated more than 3,500 students. According to Reuters, Hack Reactor had raised $1 million from the founder’s friends and family.
Galvanize, which offers programs in web development and data science, has campuses in Austin, New York and San Francisco, which will now host Hack Reactor’s programs. As part of the deal, Hack Reactor’s graduates will get six months of free membership to Galvanize’s campuses.
Galvanize recently went through a rocky restructuring period. Last July, its CEO at the time stepped down. The following month, the company laid off 37 employees (about 11 percent of its staff at the time). Its current CEO, Al Rosabal, took the helm at the start of 2018.
The deal marks the latest in a wave of consolidation for the bootcamp industry. Some have shut down (including Dev Bootcamp, Iron Yard and Learners Guild). Others were acquired (including Bloc, Viking Code School and General Assembly). Expect more to come as Galvanize plans to use its newly-raised money to pursue further acquisitions.
