Last month we published our take on the EVERFI Sell-Off of its Higher Ed division to Vector Solutions. 

As a follow up to that article, and in response to more than a dozen emails asking for guidance on how to frame the potential downsides (and upsides) to this huge vendor consolidation, we’re sharing our list of 8 Questions to Ask Vector Solutions. 

Whether the Vector/EVERFI consolidation will benefit the 1,000 institutions affected by the acquisition or not will take months to determine.

To help anticipate that future impact, we recommend asking Vector Solutions the following questions. 

Considering switching away from Vector/EVERFI? Join our EVERFI Buyout Webinar to learn more about how (and why) to switch.

8 Questions to Ask Vector Solutions About the EVERFI Acquisition

  1. Will Vector Solution raise prices at renewal for EVERFI customers?
  2. Will Vector Solutions move EVERFI customers away from the Site License pricing model?
  3. Did Vector Solutions acquire EVERFI’s LMS or just course content?
  4. Will Vector Solutions force EVERFI customers to switch to a different LMS?
  5. Will Vector Solutions replace EVERFI’s employee courses with its own employee catalog?
  6. Which EVERFI courses will Vector Solutions sunset and when?
  7. Will Vector Solutions invest in the development of new student courses?
  8. Will Vector Solutions offer customizations for its student and employee courses?

Will Vector Solution raise prices at renewal for EVERFI customers?

A common private equity strategy when consolidating competitors is to raise prices. Vector Solutions paid $100M for EVERFI’s 1,000 Higher Ed customers. That’s $100,000 per customer. Most compliance training contracts in Higher Ed represent only a fraction of that dollar value. It’s not unreasonable to conclude that raising prices will be part of the strategy going forward. 

Will Vector Solutions move EVERFI customers away from the Site License pricing model?

Most Higher Ed institutions today purchase online training through Site License packages that give customers unlimited access to training courses. This is generally viewed as a more affordable and predictable pricing structure. It’s worth asking whether or not this model will continue under Vector Solutions’ management. 

See 2021 Higher Ed Vendor Guide published via Inside Higher Ed for more information. 

Did Vector Solutions acquire EVERFI’s LMS or just course content?

EVERFI recently completed a wide-scale migration to its Foundry LMS platform. This LMS is used by EVERFI’s K-12 and Corporate customers that were notably not sold to Vector Solutions. It’s possible EVERFI granted a perpetual license for the use of its LMS by Vector Solutions, but if they did not, this would mean that all 1,000 campuses will be required to move off of Foundry (or any other EVERFI owned LMS) in the near future. 

Will Vector Solutions force EVERFI customers to switch to a different LMS?

See answer above. If EVERFI didn’t sell its LMS to Vector Solutions, it will be important to understand the timeline within which customers will be required to switch. 

Will Vector Solutions replace EVERFI’s employee courses with its own employee catalog?

Vector Solutions has acquired a large library of corporate training courses (a possible upside for Higher Ed customers) over the years. This will represent some overlap with EVERFI’s employee facing training courses. It’s worth asking whether these EVERFI courses will be replaced and when. 

Will Vector Solutions invest in the development of new student courses?

Vector Solutions has completed 13 acquisitions in the last 4 years, many of those training vendors. This represents a massive capital allocation towards acquisitions. Whether or not Vector Solutions will internally invest in new course content is unknown, but given the investment in acquiring third party content, there’s some signal that they innovate primarily through acquisition not internal development. Why this is relevant for student training content specifically is that as a result of wide-scale consolidation over the last several years, there are very few training vendors left standing who develop student training courses.  

Which EVERFI courses will Vector Solutions sunset and when?

Assuming Vector Solutions does decide to sunset some of EVERFI’s content, it’s worth asking when that will be and how it will be managed to ensure compliance. 

Will Vector Solutions offer customizations for its student and employee courses?

One complexity with building a course content library through acquisitions is that it’s more difficult to manage customizations. This is because each vendor develops its own system and uses its own tools to build and customize original content. It’s worth asking whether Vector Solutions will continue to support the ongoing customization needs of EVERFI course content. 

Considering switching away from Vector/EVERFI? Join our EVERFI Buyout Webinar to learn more about how (and why) to switch.