NIIT buys SweetRush for up to USD $26m in AI learning push
NIIT Learning Systems has acquired US-based learning design firm SweetRush for up to USD $26 million, adding a larger near-shore delivery footprint in the Americas and widening its services portfolio.
NIIT Learning Systems said it bought 100% of SweetRush through its wholly owned subsidiary NIIT USA. The price includes performance-based earnouts over the next five years and is subject to customary adjustments under the definitive agreements.
SweetRush is headquartered in San Francisco and was founded in 2001 by Arturo Schwartzberg and Andrei Hedstrom. The company works with more than 100 team members and an extended pool of industry experts across the United States and Costa Rica, supported by a broader pool of learning professionals.
NIIT Learning Systems trades under the ticker NIITMTS. The company positions itself in managed learning services and corporate learning and development. It operates in more than 30 countries.
Service Expansion
NIIT Learning Systems described SweetRush as a provider of AI-enabled custom learning experience design and strategic training interventions for large enterprises, professional associations and not-for-profit organisations. SweetRush also develops certification-oriented content and talent solutions.
NIIT Learning Systems said the combination brings SweetRush's custom learning design together with NIIT's managed learning services platform. The company said it expects a broader services portfolio that includes strategic learning interventions, certification solutions and talent solutions.
NIIT Learning Systems also pointed to an opportunity to extend managed learning engagements across SweetRush's client base. The company described this as a shift from project-based work towards longer-duration contracts.
Sapnesh Lalla, Chief Executive Officer and Executive Director, NIIT MTS, framed the acquisition as a move to add to NIIT's existing platform.
"SweetRush has built a trusted position with discerning clients for whom performance outcomes truly matter. This strategic combination adds award-winning strategic learning interventions and talent solutions to NIIT's Managed Learning Services platform. Together, we will offer clients the best of human-centered learning craft and global operational scale-powered by technology and AI," said Sapnesh Lalla, Chief Executive Officer and Executive Director, NIIT MTS.
Near-shore Teams
SweetRush's operating model includes delivery across the United States and Costa Rica. NIIT Learning Systems said the deal expands its near-shore delivery capability in the Americas.
Danielle Hart, Chief Executive Officer, SweetRush, said the company will join NIIT while retaining the elements it sees as distinctive.
"SweetRush's culture and craft have always been rooted in care, innovation, and business transformation. Joining NIIT gives us a larger platform to serve clients globally while staying true to what makes SweetRush distinctive - human-centered learning design and experiences that drive business-critical outcomes," said Danielle Hart, Chief Executive Officer, SweetRush.
Leadership View
NIIT Learning Systems said the acquisition strengthens its ability to serve global enterprises with a wider range of learning services. Vijay K. Thadani, Vice Chairman & Managing Director, NIIT MTS, linked the purchase to the company's service mix.
"This acquisition strengthens NIIT MTS' ability to serve global enterprises with an expanded, outcome-focused portfolio, combining strategic learning interventions with managed learning delivery and operations at scale," said Thadani.
SweetRush's founders also commented on the combination and how it affects the business and staff.
"There is perfect synergy in the union of NIIT and SweetRush. Our team, culture, and capabilities are 100% intact. Now we get to leverage the might of NIIT and enhance the ways we support our clients who turn to us when they have mission-critical learning and development initiatives," said Arturo Schwartzberg, SweetRush Co-Founder.
Andrei Hedstrom, SweetRush Co-Founder, said the two companies will connect their operations and teams.
"SweetRush has been growing our craft to serve the potential of people and their organizations with great care. We see the connection of the NIIT and SweetRush ecosystems as a way to amplify the greater promise of our teams' transformative impact," said Hedstrom.
SweetRush's services include strategy consulting and analysis, strategic training interventions, bespoke learning solutions, talent solutions, certification development and learning technologies including VR, AR and AI. NIIT Learning Systems said it will integrate SweetRush into its operations through the US subsidiary that completed the transaction.