Torch Acquires Praxis Labs to Expand AI-Powered Leadership Development
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In a strategic move to bolster its leadership development offerings, Torch has acquired Praxis Labs, an AI-driven platform specializing in diversity, equity, and inclusion (DEI) training. The deal, finalized this week, underscores the growing demand for scalable, technology-enhanced solutions in corporate learning and development. Praxis Labs, founded in 2018, gained recognition for its immersive virtual reality (VR) and artificial intelligence tools designed to help organizations foster inclusive leadership. Its flagship product, Pivotal Experiences, uses AI to simulate real-world workplace scenarios, enabling employees to practice empathetic decision-making in a risk-free environment. Torch, a leadership coaching and mentorship platform, plans to integrate Praxis Labs’ technology into its existing suite of services. The acquisition aligns with Torch’s mission to combine human expertise with AI-driven insights, offering clients a more comprehensive approach to leadership growth. Industry analysts note that the merger reflects a broader trend of consolidation in the corporate training sector, where AI and VR are increasingly leveraged to address skill gaps. According to a 2024 report by McKinsey, companies investing in immersive learning tools report a 30% higher retention rate in leadership programs compared to traditional methods. Neither company disclosed financial details of the transaction, but sources familiar with the deal suggest it was a cash-and-stock agreement valued in the mid-eight figures. The integration of Praxis Labs’ team and technology into Torch is expected to be completed by early 2026, with existing clients of both platforms assured uninterrupted service during the transition.
