Parchment Acquisition, Valuation, Funding & Investors

Parchment was acquired by Instructure for $835M in October 2023, a 7.3x multiple on $115M of revenue.

Parchment acquisition price

$835M

Acquired by Instructure · Oct 2023

Parchment revenue at acquisition

$115M

Last twelve months · Oct 2023

Parchment revenue multiple at acquisition

7.3x

EV/Revenue · Oct 2023

Parchment EBITDA multiple at acquisition

23.0x

EV/EBITDA · Oct 2023

Parchment Overview

About Parchment

Parchment is a Scottsdale-headquartered education technology company facilitating the exchange of over 15 million academic credentials worldwide. The platform serves thousands of schools, universities, and employers in the United States, Canada, and beyond for transcript requests, verifications, and digital sharing. Offices operate in Roseville, California; Denver, Colorado; Grand Rapids, Michigan; Toronto, Ontario; and Washington, DC. Founded in 2003, Parchment supports institutions like the University of California system and Arizona State University.


Founded

2003

HQ

United StatesPhoenix, AZ

Status

Acquired

Customer focus

B2B

Revenue model

Subscription

Revenue

$115M (Oct 2023)

Valuation

$835M (acquired Oct 2023)

Parchment Acquisition

Parchment was acquired by Instructure for $835M on 30 October 2023.

The acquisition price implies a 7.3x revenue and 23.0x EBITDA multiple on $115M of revenue.

Before the acquisition Parchment had raised $47M across 2 funding rounds.

Parchment operates the world's largest academic credential management platform and network, serving over 15,000 customers and exchanging more than 165 million credentials over two decades, including solutions for e-transcripts, credit transfer, proof of prior learning, and platforms like Award and Digitary. Instructure Holdings, Inc. (NYSE: INST), maker of the Canvas learning platform and leading learning ecosystem provider, signed a definitive agreement on October 30, 2023, to acquire Parchment for approximately $835 million, with a net purchase price of $795 million after tax benefits, or about 16 times Parchment's expected 2024 Adjusted EBITDA including synergies. Parchment is projected to contribute $115 million in revenue in 2024, with mid-to-high 90s gross retention and highly stable recurring revenue. The strategic rationale integrates Parchment into the Instructure Learning Platform to create a verifiable digital passport of learner achievements, expanding Instructure's customer base, enabling cross-selling across K-12, higher education, and employer verification channels, and unlocking growth in new solution categories connecting learners, institutions, and employers. Previously a portfolio company of Brentwood Associates, the all-cash deal financed by Instructure's cash on hand and incremental debt closed on February 1, 2024, after regulatory approval. It enhances Instructure's ecosystem for skill mastery demonstration amid economic challenges like inflation and high interest rates.

Parchment acquisition details
AcquirerDateTypePriceEV/RevenueEV/EBITDA
30 Oct 2023Strategic M&A$835M7.3x23.0x

Parchment Funding History

Parchment has raised a total of $47M across 2 funding rounds.

Parchment's first fundraising round was a $35M Series D in March 2014. The most recent completed round was a $12M Series A in March 2016.

Parchment funding rounds

Parchment funding rounds
DateStageInvestorsRaisedDeal Summary
Mar 2016Series A-$12M-
Mar 2014Series DSuRo Capital; The Raine Group; Salmon River Capital; Novak Biddle Venture Partners$35MParchment is a leader in electronic transcript exchange and academic credentialing. The company operates the world's largest academic credentialing platform and network, having exchanged more than 165 million credentials over two decades and serving more than 15,000 customers. In December 2013, Parchment closed a $10 million follow-on funding round led by The Raine Group, with participation from existing investors including Novak Biddle Venture Partners, Salmon River Capital, and GSV Capital, bringing total capital raised to $45 million. The funds were designated for accelerating product development and expanding the company's network of partners. By 2023, when Instructure announced its acquisition of Parchment for approximately $835 million (valued at 16 times expected 2024 Adjusted EBITDA), the company was projected to generate approximately $115 million in revenue in 2024, demonstrating significant growth and establishment as a dominant player in the credentials exchange market.

Who has invested in Parchment?

4 investors have backed Parchment across its funding rounds, including The Raine Group, SuRo Capital, Novak Biddle Venture Partners and Salmon River Capital.


Parchment Investors

Investors in Parchment by funding rounds participated
InvestorHQRoundsRoleFirst check
SuRo CapitalUnited StatesSan Francisco, CA1ParticipantMar 2014
The Raine GroupUnited StatesNew York City, NY1ParticipantMar 2014

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Acquisitions by Parchment

Parchment has acquired 2 companies to date.

Last acquisition by Parchment was on March 21st 2023. Parchment acquired Quottly for $17M.


Latest Acquisitions by Parchment

Quottly
Credentials Solutions
Description
Quottly is a San Francisco-based edtech platform that optimizes college course searches for transfer credits. It aggregates offerings from over 4,000 U.S. institutions, matching user courses to their home school's equivalencies while prioritizing cost and format. Students access filters for online, hybrid, and nearby community colleges, saving up to 50 percent on tuition. Founded in 2020, Quottly partners with universities like UCLA for verified data.
Credentials Solutions is a Schaumburg-headquartered company founded in 1997 that automates transcript ordering, diploma fulfillment, and enrollment verification for over 500 US higher education institutions and municipalities. Its Parchment-integrated platform processes millions of transcript requests yearly, supporting electronic delivery via National Student Clearinghouse networks. Credentials Solutions also manages parking permits and vehicle registrations, providing PCI-compliant payment processing and 24/7 customer support portals.
HQ CountryUnited StatesUnited States
HQ City
Gainesville, FL
Quad Cities, IL
Deal Date21 Mar 202318 Dec 2019
Valuation$17Mundisclosed
EV/Revenue
EV/EBITDA

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Investments by Parchment

Parchment has invested in 1 company to date.

Latest investment by Parchment was on October 25th 2021. Parchment invested in ActiveClass in their $2M Seed round.


Latest Investments by Parchment

ActiveClass
Description
ActiveClass is a social learning management system for universities integrating course tools with campus communities. The platform supports note-sharing, video discussions, and event scheduling within LMS environments like Canvas and Blackboard, deployed at institutions such as the University of Michigan to boost engagement through mobile-first features.
HQ CountryUnited States
HQ City
Tempe, AZ
Deal Date25 Oct 2021
RoundSeed
Raised$2M
InvestorsPHX Ventures; CampusLogic
Valuationundisclosed
EV/Revenue
EV/EBITDA

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Parchment Competitors

Parchment competitors include listed companies like Sphere and Vitec Software, and private ones like Reify Health, Class Technologies, Amplify Education and Overjet.

Public and private companies comparable to Parchment
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Reify HealthUnited StatesBoston, MAPrivate--$4.8B-
SphereSouth KoreaSouth KoreaPublicly listed$70M$6M$813M6.9x
Class TechnologiesUnited StatesWashington, DCPrivate--$804M-
Amplify EducationUnited StatesNew York City, NYPrivate--$781M-
OverjetUnited StatesBoston, MAPrivate--$712M-
Vitec SoftwareSwedenSwedenPublicly listed$371M$151M$1B3.5x

Parchment Public Comps

Parchment is no longer listed, but its public comps include Sphere, Helus Pharma, Vitec Software, Docebo, Shenzhen Fangzhi Science, D2L, NIIT Learning Systems, Qibu, Tribal Group and Cengage.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Sphere$70M$6M14.3x6.9x156.3x103.0x
Helus Pharma-($153M)--(5.4x)(4.8x)
Vitec Software$371M$151M3.7x3.5x9.1x9.0x
Docebo$243M$26M2.6x2.4x24.8x12.3x
Shenzhen Fangzhi Science$14M$3M28.2x-118.5x-
D2L$217M$17M1.3x1.2x16.7x8.3x
NIIT Learning Systems$204M$42M1.3x1.2x6.1x6.0x
Qibu$24M($16M)15.3x-(23.0x)-

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Common questions about Parchment

When was Parchment founded?Parchment was founded in 2003.
Where is Parchment headquartered?Parchment is headquartered in Phoenix, AZ, United States.
Is Parchment publicly listed?No, Parchment was acquired by Instructure in October 2023.
Who acquired Parchment?Parchment was acquired by Instructure in October 2023.
How much was Parchment acquired for?Parchment was acquired for $835M in October 2023, a 7.3x revenue multiple.
How much funding has Parchment raised?Parchment has raised $47M across 2 funding rounds.
What was Parchment's last funding round?Parchment's last funding round was a $12M Series A in March 2016.
Who are Parchment's investors?Parchment's investors include SuRo Capital, The Raine Group, Salmon River Capital and Novak Biddle Venture Partners.
Which companies are comparable to Parchment?Companies comparable to Parchment include Reify Health, Sphere, Class Technologies, Amplify Education, Overjet and Vitec Software.
How many companies has Parchment acquired?Parchment has acquired 2 companies, including Quottly and Credentials Solutions.
What was the largest acquisition by Parchment?The $17M acquisition of Quottly in March 2023 is the largest acquisition Parchment has made to date.
How many companies has Parchment invested in?Parchment has invested in 1 company, including ActiveClass.
What was Parchment's last investment?In October 2021, Parchment invested in ActiveClass' $2M seed round alongside PHX Ventures and CampusLogic.

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