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Business Combinations (Tables) | 9 Months Ended
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Oct. 31, 2022
Business Acquisition [Line Items] |
Summary of unaudited pro forma financial information | The following unaudited pro forma financial information summarizes the results of continuing operations for the Company as though the acquisitions of Skillsoft, Global Knowledge and Codecademy had occurred on February 1, 2021 (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Unaudited Pro Forma Statement of Operations
​ | ​ | Three months | ​ | Three months | ​ | Nine months | ​ | Nine months
​ | ​ | ended | ​ | ended | ​ | ended | ​ | ended
​ |  | October 31, 2022 | ​ | October 31, 2021 | ​ | October 31, 2022 | ​ | October 31, 2021
Revenue | ​ | $ | 139,390 | ​ | $ | 151,266 | ​ | $ | 422,861 | ​ | $ | 440,600
Net loss from continuing operations | ​ |  | (16,134) | ​ |  | (57,878) | ​ |  | (100,472) | ​ |  | (111,805)
SLH |
Business Acquisition [Line Items] |
Summary of purchase consideration | The following summarizes the purchase consideration (in thousands): ​
​ | ​ | ​ | ​ | ​
Description |  | Amount | ​
Class A common stock issued | ​ | $ | 258,000 | ​
Class B common stock issued* | ​ |  | 48,375 | ​
Cash payments | ​ | ​ | 505,000 | ​
Second Out Term Loan | ​ | ​ | 20,000 | ​
Cash settlement of seller transaction costs | ​ | ​ | 1,308 | ​
Total Purchase Price | ​ | $ | 832,683 | ​
​ *Shares of Class B common stock were converted into Successor Class A common stock at the time of the Skillsoft Merger. ​
Summary of fair value of the purchase price allocation | The Company recorded the fair value of the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | Preliminary Purchase | ​ | ​ | ​ | Final Purchase
Description | Price Allocation | ​ | Adjustments (1)(2) |  | Price Allocation
Cash, cash equivalents and restricted cash | $ | 120,273 | ​ | $ | — | ​ | $ | 120,273
Current assets | ​ | 118,847 | ​ | ​ | 706 | ​ | ​ | 119,553
Property and equipment |  | 10,825 | ​ |  | 1,632 | ​ |  | 12,457
Intangible assets | ​ | 769,799 | ​ | ​ | (4,701) | ​ | ​ | 765,098
Long term assets |  | 18,629 | ​ |  | — | ​ |  | 18,629
Total assets acquired | ​ | 1,038,373 | ​ | ​ | (2,363) | ​ | ​ | 1,036,010
Current liabilities |  | (49,056) | ​ |  | (350) | ​ |  | (49,406)
Debt, including accounts receivable facility |  | (552,977) | ​ |  | — | ​ |  | (552,977)
Deferred revenue |  | (123,300) | ​ |  | (113,917) | ​ |  | (237,217)
Deferred and other tax liabilities |  | (99,699) | ​ |  | 15,920 | ​ |  | (83,779)
Long term liabilities |  | (18,325) | ​ |  | 1 | ​ |  | (18,324)
Total liabilities assumed | ​ | (843,357) | ​ | ​ | (98,346) | ​ | ​ | (941,703)
Net assets acquired | ​ | 195,016 | ​ | ​ | (100,709) | ​ | ​ | 94,307
Goodwill | ​ | 637,667 | ​ | ​ | 100,709 | ​ | ​ | 738,376
Total purchase price | $ | 832,683 | ​ | $ | — | ​ | $ | 832,683
​
| (1) | The increase in deferred revenue (and the corresponding increase to Goodwill by the same amount) is the result of the adoption of ASU 2021-08 in the quarter ended October 31, 2021.
| (2) | All other changes represent measurement period adjustments attributable to the Company’s review of inputs and assumptions utilized in valuation models and additional information being obtained on preacquisition liabilities, since the initial purchase price allocation. The measurement period adjustments did not have a significant impact on the Company’s results of operations in prior periods.
​
Summary of identifiable intangible assets and estimated useful lives | The values allocated to identifiable intangible assets and their estimated useful lives are as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
Description |  | Amount |  | Life
Trademark/tradename – Skillsoft | ​ | $ | 84,700 |  | indefinite
Trademark/tradename – SumTotal | ​ |  | 5,800 |  | 9.6 | years
Courseware | ​ | ​ | 186,600 |  | 5 | years
Proprietary delivery and development software | ​ | ​ | 114,598 | ​ | 2.5-7.6 | years
Publishing Rights | ​ |  | 41,100 |  | 5 | years
Customer relationships | ​ |  | 271,400 |  | 12.6 | years
Backlog | ​ |  | 60,900 |  | 4.6 | years
Total | ​ | $ | 765,098 |  |  | ​
​
GK |
Business Acquisition [Line Items] |
Summary of purchase consideration | The following summarized the purchase consideration (in thousands): ​
​ | ​ | ​ | ​
Description |  | Amount
Cash consideration | ​ | $ | 170,199
Warrants Issued | ​ |  | 14,000
Joinder Term Loans | ​ | ​ | 70,000
Cash settlement of seller transaction costs | ​ | ​ | 4,251
Total Purchase Price | ​ | $ | 258,450
Summary of fair value of the purchase price allocation | The Company recorded the fair value of the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | Preliminary Purchase | ​ | ​ | ​ | Final Purchase
Description | Price Allocation | ​ | Adjustments (1)(2) |  | Price Allocation
Cash, cash equivalents | $ | 17,524 | ​ | $ | 157 | ​ | $ | 17,681
Current assets |  | 47,849 | ​ |  | (2,378) | ​ |  | 45,471
Property and equipment | ​ | 5,531 | ​ | ​ | 1,625 | ​ | ​ | 7,156
Intangible assets | ​ | 185,800 | ​ | ​ | 200 | ​ | ​ | 186,000
Long term assets |  | 12,401 | ​ |  | (3,106) | ​ |  | 9,295
Total assets acquired | ​ | 269,105 | ​ | ​ | (3,502) | ​ | ​ | 265,603
Current liabilities |  | (74,463) | ​ |  | 10,952 | ​ |  | (63,511)
Deferred revenue |  | (23,018) | ​ |  | (8,191) | ​ |  | (31,209)
Deferred and other tax liabilities | ​ | (16,934) | ​ | ​ | (8,875) | ​ | ​ | (25,809)
Long term liabilities | ​ | (4,248) | ​ | ​ | 2,177 | ​ | ​ | (2,071)
Total liabilities assumed | ​ | (118,663) | ​ | ​ | (3,937) | ​ | ​ | (122,600)
Net assets acquired | ​ | 150,442 | ​ | ​ | (7,439) | ​ | ​ | 143,003
Goodwill | ​ | 108,008 | ​ | ​ | 7,439 | ​ | ​ | 115,447
Total Purchase Price | $ | 258,450 | ​ | $ | — | ​ | $ | 258,450
​
| (1) | The increase in deferred revenue (and the corresponding increase to Goodwill by the same amount) is the result of the adoption of ASU 2021-08 in the quarter ended October 31, 2021.
| (2) | All other changes represent measurement period adjustments attributable to the Company’s review of inputs and assumptions utilized in valuation models and additional information being obtained on preacquisition liabilities, since the initial purchase price allocation. The measurement period adjustments did not have a significant impact on the Company’s results of operations in prior periods.
​
Summary of identifiable intangible assets and estimated useful lives | The values allocated to identifiable intangible assets and their estimated useful lives are as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
Description |  | Amount |  | Life
Trademark/tradename | ​ | $ | 25,400 |  | 17.6 | years
Courseware | ​ |  | 1,500 |  | 3 | years
Proprietary delivery and development software | ​ | ​ | 2,500 |  | 0.6 | years
Vendor relationships | ​ | ​ | 43,900 | ​ | 2.6 | years
Customer relationships | ​ |  | 112,700 |  | 10.6 | years
Total | ​ | $ | 186,000 |  |  | ​
​
Codecademy [Member] |
Business Acquisition [Line Items] |
Summary of purchase consideration | The following summarizes the purchase consideration (in thousands): ​
​ | ​ | ​ | ​
Description |  | Amount
Cash payments | ​ | $ | 202,119
Class A common stock issued | ​ | ​ | 182,550
Cash settlement of seller transaction costs and other | ​ | ​ | 1,315
Total Purchase Price | ​ | $ | 385,984
Summary of fair value of the purchase price allocation | The Company preliminarily recorded the fair value of the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Preliminary Purchase | ​ | ​ | ​ | ​ | Updated Purchase
Description | ​ | Price Allocation | ​ | ​ | Adjustments | ​ | Price Allocation
Cash, cash equivalents and restricted cash | ​ | $ | 4,262 | ​ | ​ | (209) | ​ | $ | 4,053
Current assets | ​ | ​ | 3,671 | ​ | ​ | ​ | ​ | ​ | 3,671
Property and equipment | ​ |  | 385 | ​ | ​ | ​ | ​ |  | 385
Intangible assets | ​ | ​ | 112,000 | ​ | ​ | ​ | ​ | ​ | 112,000
Total assets acquired | ​ | ​ | 120,318 | ​ | ​ | (209) | ​ | ​ | 120,109
Current liabilities | ​ |  | (4,290) | ​ | ​ | ​ | ​ |  | (4,290)
Deferred revenue | ​ |  | (18,396) | ​ | ​ | ​ | ​ |  | (18,396)
Deferred tax liabilities | ​ |  | (21,615) | ​ | ​ | 1,019 | ​ |  | (20,596)
Total liabilities assumed | ​ | ​ | (44,301) | ​ | ​ | 1,019 | ​ | ​ | (43,282)
Net assets acquired | ​ | ​ | 76,017 | ​ | ​ | 810 | ​ | ​ | 76,827
Goodwill | ​ | ​ | 309,967 | ​ | ​ | (810) | ​ | ​ | 309,157
Total purchase price | ​ | $ | 385,984 | ​ | ​ | — | ​ | $ | 385,984
Summary of identifiable intangible assets and estimated useful lives | The preliminary values allocated to identifiable intangible assets and their estimated useful lives are as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​
Description |  | Amount |  | Life
Tradename | ​ | $ | 44,000 |  | 13.8 | years
Developed Technology | ​ |  | 40,000 |  | 5 | years
Content | ​ | ​ | 18,000 |  | 5 | years
Customer relationships | ​ |  | 10,000 |  | 5.8 | years
Total | ​ | $ | 112,000 |  |  | ​

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