BY Fraser Tennant
In a deal that takes the K-12 education software and cloud-based solutions provider private, PowerSchool Holdings is to be acquired by US private investment firm Bain Capital in a transaction valued at $5.6bn.
Under the terms of the definitive agreement, PowerSchool stockholders will receive $22.80 per share in cash upon completion of the proposed transaction, which represents a premium of 37 percent over PowerSchool’s unaffected share price of $16.64 as of 7 May 2024.
Upon completion of the transaction, PowerSchool’s common stock will no longer be publicly listed on the New York Stock Exchange, and PowerSchool will become a privately held company.
A global education technology company supporting over 55 million students and over 17,000 customers in more than 90 countries, PowerSchool brings together the best of K-12 educational and operational technology to support every step of the learning journey.
“PowerSchool is uniquely positioned to provide differentiated, mission-critical solutions that drive better education outcomes, empower educators and help district operations run more efficiently,” said Hardeep Gulati, chief executive of PowerSchool. “With Bain Capital’s support, PowerSchool will have access to additional resources and the flexibility to deliver even more growth and innovation.”
“PowerSchool’s innovative software solutions in and out of the classroom provide a strong foundation for K-12 academic success. said David Humphrey, a partner at Bain Capital. “Their products are highly respected by administrators, educators, students and parents because they foster active collaboration and offer actionable insights needed to support positive learning outcomes.”
The transaction – which has been approved by the PowerSchool board of directors – is expected to close in the second half of 2024, subject to customary closing conditions, including receipt of regulatory approvals.
“As demand for K-12 educational technology grows, we believe there are significant opportunities to expand access to PowerSchool’s best-in-class product suite around the world,” concluded Max de Groen, a partner at Bain Capital. “We look forward to working with PowerSchool to accelerate the company’s growth while strengthening its commitment to help educators and students realise their full potential.”
News: Bain Capital to take PowerSchool private in $5.6 bln deal