Challenge

The Buyer needed to modernise its assessment pipeline with machine learning and natural language processing (ML/NLP) technology. The requirements included:

  • Production-ready automated assessment technology capable of supporting high-volume exam marking.
  • Strict security and data protection compliance, critical in handling sensitive educational data.
  • A solution the organisation was uncomfortable developing in-house, given the risks and specialised expertise required.

The challenge was clear: the Buyer required cutting-edge innovation delivered with speed, security, and certainty — without taking on the risk or cost of internal development.

Solution

XLIO proposed its unique model to eliminate risk and deliver the exact outcome required:

  1. You Specify – The Examination Board defined its needs for secure, production-ready ML/NLP assessment technology. Milestones and success criteria were jointly agreed, alongside a pre-determined acquisition price.
  2. We Build – XLIO created a dedicated new entity (“NewCo”) to build the technology. To accelerate development and ensure robust machine learning data, NewCo launched a consumer-facing exam practice product, which both served learners and generated the corpus required to train and scale the assessment technology.
  3. You Acquire – Once all targets were achieved, the Buyer acquired NewCo in a seamless transaction. The technology was already pre-integrated into the Board’s exam-marking pipeline, ensuring immediate impact.

Results

  • Successful Integration: The ML/NLP-based automated assessment solution was embedded directly into the Buyer’s production marking processes from day one.
  • Security and Compliance: All development met the strict data protection and security requirements of the examination environment.
  • Capital Efficiency: The Buyer paid only upon successful delivery, acquiring NewCo at the pre-agreed £20M price.
  • Future-Proofing: By leveraging the consumer-facing product to train and scale the technology, NewCo created a foundation for ongoing innovation.

Key Takeaway

By partnering with XLIO, the UK Examination Board acquired a secure, production-ready ML/NLP assessment startup purpose-built to its needs — without taking on development risk or cost. XLIO’s model ensured immediate operational benefits, compliance confidence, and predictable financial outcomes.