Pajeau, Inc., d/b/a Tynker (“Tynker” or the “Company”) is an innovative EdTech company specializing in coding education for children, offering a gamified platform that integrates AI-powered lesson adaptation to optimize learning outcomes. Its comprehensive suite of tools and curriculum supports schools and parents in fostering the next generation of programmers and STEM professionals.
In 2020 and 2021, Tynker experienced robust growth in users and revenue, driven in part by the widespread adoption of remote learning during COVID-19. However, with the return to in-person education hampered Tynker’s ability to pursue an aggressive growth strategy and acquire new customers. In mid-2024, Tynker was admitted into Chapter 11 bankruptcy in a jointly administered case along with Epic! Creations, Inc., and Tangible Play, Inc., and a Chapter 11 Trustee was appointed.
SC&H Capital (“SC&H”) was retained to conduct an extensive marketing process in search of a buyer for the Company’s assets and to effectuate the transaction through a Chapter 11 Section 363 sale. Despite having limited financial statements, a material reduction in operational investment and growth marketing initiatives, and limited ability to grow its customer base due to constrained liquidity, SC&H positioned the Company as an attractive investment opportunity. SC&H’s marketing process garnered significant interest from buyers looking to leverage Tynker’s strong brand equity, low-cost scalability, tenured relationships with educational institutions, and its position as a market leader for over a decade in the coding-specific EdTech niche.
Ultimately, SC&H conducted a competitive auction for the assets with two qualified bidders. After multiple rounds of bidding, and a 100% increase in the stalking horse bid, SC&H sold Tynker to CodeHS, a complementary, market-leading company in the EdTech and coding educational industry.
