Brentwood Associates ("Brentwood"), a middle market private equity investment firm, is pleased to announce that it has acquired Parchment Inc. ("Parchment"). Parchment is a digital credential service allowing learners, academic institutions and employers to request, verify, and share credentials in simple and secure ways. As part of the transaction, Parchment will be merged with Credentials Solutions, LLC ("Credentials Solutions"), a leading higher education transcript automation services provider acquired by Brentwood in early 2018. Craig Milius and Steve Moore from Brentwood will serve on the Board of Directors of the combined company.
The combined organization will be united under the Parchment brand and support an integrated network of more than 13,000 high schools, universities and professional organizations serving millions of consumers. This highly scalable platform enables learners to turn credentials into opportunities across a range of academic and professional opportunities and is a differentiated foundation for strategic initiatives such as simplified data exchange, innovative analytics for institutions and superior customer experiences that reimagine the scope and function of the credential.
Parchment's current Chief Executive Officer, Matthew Pittinsky, Ph.D., will lead the combined company and also serve on its Board of Directors. "Combining Parchment's and Credentials Solutions' networks of schools and universities will create a comprehensive platform that integrates the issuing and receiving of transcripts, diplomas, certificates, and badges, backed by a customer service model that puts the learner at the center," said Mr. Pittinsky. "I am excited to partner with Brentwood given their track record of success in the education sector, growth-minded approach, and deep understanding of our customer's needs."
Craig Milius commented, "The combined Parchment and Credentials Solutions organization is uniquely positioned to capitalize on robust growth opportunities within and beyond student credential management." He continued, "We are excited to leverage the scale and respective product suites to drive innovation, accelerate growth and expand market reach."
Steve Moore added, "This investment is an important continuation of our broader category thesis for credential innovation. The merger leverages our deep vertical market expertise and accelerates our ability to delight the customers we have and deliver value in new and differentiated ways throughout an increasingly large ecosystem of institutions. We are excited to partner with Matthew Pittinsky, a proven entrepreneur and visionary in education technology."
Goldman Sachs & Co. LLC served as financial advisor and Quarles & Brady LLP provided legal counsel to Parchment. Brentwood was represented by Shearman & Sterling LLP.
About Brentwood Associates
Brentwood Associates is a middle-market private equity investment firm with a 30+ year history of investing in leading growth companies. Brentwood focuses on investments in growing businesses where it can leverage its extensive experience in areas such as: consumer products and services; multi-location growth strategies, including specialty retail and restaurants; direct marketing, including direct mail and e-commerce; health and wellness; education; and business services. Since 1984, Brentwood's dedicated private equity team has invested in over 50 portfolio companies with an aggregate transaction value of over $6 billion. With significant experience in both investing and brand building, Brentwood is a value-added partner with entrepreneurs and senior management teams building world-class companies. For more information about Brentwood, please visit www.brentwood.com.
About Credentials Solutions
Founded in 1997, Credentials Solutions specializes in identifying labor-intensive administrative processes at postsecondary institutions and replacing them with simplified, automated software solutions at a lower cost to the institutions.
Founded in 2003, Parchment is a widely adopted credential service, allowing learners, academic institutions, and employers to request, verify, and share credentials in simple and secure ways.