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HackerUSA, a tech training company owned by Israel-based ThriveDX, has accumulated significant debt and will relinquish half of its shares in the American subsidiary that will now control its cybersecurity-related intellectual property rights.
ThriveDX, also the parent company of Israel’s HackerU, one of the country’s largest tech training firms, is struggling with $146 million in debt ($540 million shekels) owed to investment funds that financed its operations outside Israel. The debt stems from a $75 million loan granted to HackerUSA by the funds in June 2022. After failing to meet loan terms, the company’s debt ballooned, leading to the appointment of a court-ordered receiver at the request of creditors.
As part of a settlement with creditors, 50% of HackerUSA's shares will be transferred in exchange for debt cancellation, along with a $25 million cash infusion into the company. The American subsidiary will also assume ownership of ThriveDX’s cybersecurity intellectual property.
The investment funds managing the debt are affiliated with Francisco Partners Management, which oversees $50 billion in assets. Earlier this month, fund representatives petitioned the Tel Aviv District Court to appoint a receiver, arguing that HackerUSA could not meet its financial obligations. The court appointed attorneys Amnon Biss and Amit Peretz as receivers, who are currently seeking buyers for the company's intellectual property rights.
According to its website, HackerU operates 14 tech training programs and has 24,500 active students worldwide. Founded in 1996 by Gil Adani, the company rebranded as ThriveDX in 2021 to reflect its international expansion. While still incorporated in Israel, ThriveDX has subsidiaries in the United States, Australia, and Singapore.
Adani, now chairman of ThriveDX, attributed the debt to an aggressive growth strategy, including the acquisition of three companies in preparation for an initial public offering (IPO) on the Nasdaq.
“We planned to go public at a unicorn valuation in late 2022 and received offers from three underwriters,” Adani told Calcalist. However, the IPO was postponed due to unfavorable market conditions, forcing the company to shift from a growth-oriented model to a profitability-focused strategy.
ThriveDX had raised $200 million in funding rounds before securing $100 million in loans for its U.S. subsidiary. That debt later grew to $140 million. “In a profitable company, you don’t make acquisitions of that scale,” Adani noted.
The loss of HackerU’s intellectual property rights comes amid a booming cybersecurity sector. Two weeks ago, Israeli startup Wiz agreed to a $32 billion acquisition deal with Google—the largest exit in the country’s history. Israeli cybersecurity funding has surged to $3.8 billion in 2024, a 56% increase from 2023, according to IVC and Cybertech Global.
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HackerU is not alone in facing financial difficulties. In April 2022, fellow tech training company Jolt laid off over half its staff and was later sold for an undisclosed sum. The company’s CEO, Roy Deutsch, was replaced by Doron Aharonson amid reports that an acquisition by an Israeli tech firm—believed to be Hub Security—had fallen through. HackerU also appointed a new CEO, Dovi Lax, in 2022, replacing founder Adani. However, Lax later departed as the company prioritized international operations.
The struggles of two major tech training firms point to broader industry challenges. “Tech jobs are appealing, attracting a new demographic that wasn’t previously involved in the sector,” according to a senior executive at a high-tech recruitment firm. “Unlike law or accounting, there’s no regulatory oversight. Many job seekers look for a fast-track entry into tech, but that requires serious institutions. Anyone can start a training program in Israel, but quality workforce and technological expertise are key.”
HackerU Israel sought to clarify its status, stating: “Contrary to the impression given in the report, this pertains to ThriveDX’s U.S. operations, not HackerU Israel. HackerU Israel will continue benefiting from the training materials developed for the group’s global customers and will remain a leader in tech education in Israel.”