Bain Capital has agreed to acquire educational technology provider PowerSchool in a take-private deal valued at $5.6 billion.
The deal follows soon after Permira’s $6.9 billion take-private of Squarespace, hinting at a possible reacceleration of take-private deal value after transaction sizes trended downward in the first quarter.
Bain will pay $22.80 a share for PowerSchool, representing a 37% premium to the stock’s closing price May 7 following media reports of potential buyers of the company.
The acquisition will enable PowerSchool to further develop its generative AI platform, PowerBuddy, which is used by students, educators and administrators.
Under the deal, Vista Equity Partners and Onex Partners will retain their minority stakes in PowerSchool.
Bain sourced debt financing from various asset managers, including Ares Management, HPS Investment Partners, Blackstone Alternative Credit Partners, Blue Owl Credit Advisors, Sixth Street and Golub Capital.
PowerSchool focuses on providing cloud-based edtech software in North America. In 2021, the company made its IPO at $18 per share and subsequently acquired student planning and behavioral software companies Naviance and Kickboard, respectively.
Last month, Bloomberg reported that PowerSchool was garnering buyout interest from Warburg Pincus. The company’s share price has risen about 9% since that report, reaching $22.46 at close Friday.
PowerSchool enlisted Goldman Sachs as financial adviser and Kirkland & Ellis as legal adviser, while Ropes & Gray served as legal adviser to Bain Capital.
Featured image by Ableimages/Getty Images
Learn more about our editorial standards.
