Google Capital, the growth equity investment arm of Google, has acquired a minority stake in Permira-backed Renaissance Learning.
The company provides cloud-based assessment, teaching and learning services for grades K through 12. Google Capital is investing $40 million in the company, which is valued at $1 billion, according to a statement. Permira continues to own a majority of Renaissance, which it acquired to help grow the firm’s exposure to digital education.
Renaissance marks Google Capital’s third portfolio company following investments in Survey Monkey and Lending Club. Last August, Renaissance acquired K12 e-reading platform Subtext as an add-on investment.
“The recent Subtext acquisition and now the Google Capital investment enhance Renaissance Learning’s already unique position in K12 and the tremendous growth potential,” Nic Volpi, a partner at Permira said in a the statement.
Permira acquired digital education provider Renaissance Learning for about $440 million in August 2011. The acquisition marked Permira’s first of a digital education company, a sub-sector of general technology, which the firm has traditionally invested in.
Google Capital launched its growth equity fund backed by Google in the summer of 2013. The group is led by former TPG partner Gene Frantz.