Friday, July 18, 2008

ConnectEDU buys Prep HeadQuarters web service

By Mass High Tech Staff

ConnectEDU Inc. reports acquiring Prep HeadQuarters, a college planning web service operating as a division of Chicago-based myFootpath LLC, that is deployed in more than 700 high schools.

Boston-based ConnectEDU will convert the Prep HeadQuarters Chicago-based office to a ConnectEDU Midwest support center. Pred HeadQuarters’ 10 employees are scheduled to join ConnectEDU’s operations, officials said.

ConnectEDU, founded in 2002, developed technology designed to provide students, educators and employers with solutions to navigate education and employment transitions. The company employs about 75 workers.

Financial terms of the deal were not disclosed.

ConnectEDU clients include consulting firm Accenture of New York; Citizens Bank in Providence, R.I.; St. John’s Preparatory School in Danvers; Mitre Corp. in Bedford; and Dunkin’ Brands Inc. in Canton.

ConnectEdu’s service is free for high schools and their students. The company generates revenue by charging colleges and employers that use the tool.

From 2005 to 2007, annual revenue rose from $4 million to a projected $10 million, officials have said.

Last year, ConnectEDU closed an $8 million Series B round of funding that followed three and a half years of development and 18 months of selling to the market. The Series B round increased total venture capital to $15 million from 23 investors, according to a filing with the U.S. Securities and Exchange Commission.