HackerU’s billion-dollar ambitions crumble under $146M debt
With its Wall Street dreams shattered, the Israeli company scrambles to restructure.
HackerU, a technology training company, has accumulated massive debts and is set to lose all rights to its products worldwide, along with half of its operations in the United States.
HackerU, one of Israel’s largest high-tech employee training companies, has amassed debts of $146 million (NIS 540 million) to investment funds that financed its operations outside Israel. The debt originated from a $75 million loan provided by the funds in June 2022. The company failed to meet the loan's terms, causing the debt to grow. At the request of the funds, a receiver was appointed to oversee the company. The financial troubles stem, among other factors, from acquisitions in the industry and the company’s efforts to expand outside Israel.
The investment funds that hold HackerU’s debt are managed by Francisco Partners Management, which oversees $50 billion in assets. Earlier this month, representatives of the funds petitioned the Tel Aviv District Court for a receiver’s appointment, claiming the company could not meet its financial obligations. The court appointed attorneys Amnon Biss and Amit Peretz as receivers, who are now seeking buyers for HackerU’s intellectual property.
According to the company's website, HackerU operates 14 comprehensive high-tech learning tracks and has 24,500 active students in Israel and abroad. HackerU was founded in 1996 by Gil Adani, and in 2021, as part of its international expansion, the company underwent a rebranding and changed its name to Thrive DX. The company remains incorporated in Israel, with offices in Ramat Gan. Over recent years, Thrive DX established subsidiaries in various countries, including the United States, Australia, and Singapore.
Gil Adani, founder of HackerU and chairman of Thrive Group, told Calcalist that the company's debt resulted from an aggressive growth strategy, including three acquisitions, in preparation for a Nasdaq IPO. However, the IPO never materialized ("delayed," according to Adani), forcing Thrive DX to shift from a growth-focused strategy to prioritizing profitability.
"We planned to go public on Nasdaq at a unicorn valuation in late 2022 and received offers from three underwriters," said Adani. "The IPO was postponed because that year was not the right time to take a tech company public." He was referring to rising interest rates and unfavorable market conditions on Wall Street.
"Before the IPO, we raised $200 million in funding rounds from investment funds," he added. "This is one of the reasons Thrive was able to se
cure the mentioned debt. The debt reached $100 million and later increased to $140 million. The company decided to restructure and shift its focus from growth to profitability. In a profitable company, you don't make such large acquisitions."
Thrive DX’s expansion strategy included acquiring Israeli cybersecurity training company Cybint for approximately $50 million. Based on Adani’s statements, it appears this acquisition was primarily financed through debt.
Outside Israel, Thrive DX operates primarily in the U.S., where it offers cybersecurity and information security courses. According to the receivership request, the company's most valuable assets are its intellectual property, including the Thrive DX brand name, its digital learning platform for cybersecurity training, course materials, downloadable and non-downloadable software (SaaS), and educational tools for students and employees. The company's assets also include trademarks registered under the HackrU brand in various countries, the Beyond learning management system (LMS) used by instructors and learners, and the Alfred system, which facilitates student and lecturer placement in courses.
The acquisition of Thrive DX’s assets will also include existing and future revenue rights from customers, fixed assets, and intellectual property from all subsidiaries.
The turmoil at HackrU could also impact its Israeli operations if the new owners seek to reduce debt, potentially limiting future investments. However, Adani denies this claim, stating, "The restructuring of the debt will primarily affect the American company. The group’s debt reduction means we are losing 50% of the U.S. company, but it will help stabilize the business." A $25 million credit line has been established to sustain the company during the search for a buyer.
The loss of HackerU’s intellectual property rights comes amid a period of significant growth in the global and Israeli cybersecurity industries. Just two weeks ago, Wiz signed an agreement to be acquired by Google for $32 billion, marking the largest exit in Israel’s history. Prior to that, Israeli cybersecurity companies raised $3.8 billion in 2024, representing a 56% increase from 2023, according to IVC and Cybertech Global data.
HackerU is not the only company to face financial struggles in recent years. In April 2022, Jolt, another high-tech training company, laid off more than half its employees and was sold for an undisclosed low sum. The company's founder, Roei Deutsch, who had served as CEO, was replaced by Doron Aaronsohn. The failed acquisition of Jolt by an Israeli tech company—believed to be Hub Security—also contributed to its struggles.
HackrU also underwent leadership changes in 2022 when Dubi Lax was appointed CEO, replacing founder Adani. However, he later stepped down as the company shifted its focus to international operations.
The financial troubles at two of Israel’s largest high-tech training firms suggest a broader industry issue. "The high-tech sector is glamorous, attracting many newcomers. There’s a lot of money in it, so people who weren’t previously oriented toward the industry are now entering," a senior executive at a high-tech placement firm told Calcalist.
"Unlike other industries, high-tech has no formal regulation. If you want to become a lawyer or accountant, you must follow a defined path, obtain a diploma, and get licensed. In contrast, many aspiring high-tech workers look for shortcuts, seeking training programs that promise quick employment. While this can be possible, it must be done by serious organizations. Today in Israel, anyone can start a tech college. What the industry really needs is a high-quality technological workforce, but rushing into it without proper training can backfire."
