Powerschool Acquired by Bain Capital for $5.6 Billion

Powerschool Holdings, Inc. (NYSE: PWSC) has just announced its acquisition by Bain Capital in a deal valued at $5.6 billion. This transaction will see Powerschool stockholders receiving $22.80 per share in cash, representing a 37 percent premium over the unaffected share price of $16.64 as of May 7, 2024.

Powerschool is a global education technology company with a significant impact, supporting over 55 million students and more than 17,000 customers across 90 countries. The company provides cloud-based software for K-12 education, with a particular focus on personalized education for every student journey.

The acquisition is set to provide Powerschool with additional resources and flexibility to drive further growth and innovation, particularly with its generative AI platform, PowerBuddy. Following the acquisition, Powerschool will remain a standalone company, with its business operations and customer service continuing without interruption.

Vista Equity Partners and Onex Partners will continue to hold minority investments in Powerschool. This decision reflects the conviction that software will remain a fundamental component of the future educational ecosystem, being reshaped by digital transformation.

The transaction is expected to close in the second half of 2024, subject to customary closing conditions and regulatory approvals. Upon completion, Powerschool's common stock will no longer be publicly listed on the New York Stock Exchange, transitioning to a privately held status.

Goldman Sachs & Co. LLC is acting as the exclusive financial advisor, and Kirkland & Ellis LLP is serving as the legal advisor to Powerschool in this acquisition. Debt financing for the transaction will be provided by Ares Capital Management, HPS Investment Partners, Blackstone Alternative Credit Advisors, Blue Owl Credit Advisors, Sixth Street Partners, and Golub Capital.

Powerschool, as a leading provider of cloud-based software for K-12 education in North America, aims to empower educators, administrators, and families to ensure personalized education for every student journey. The company offers end-to-end product clouds, supporting over 55 million students and over 17,000 customers in more than 90 countries.

Bain Capital, LP, is a leading private multi-asset alternative investment firm with a strong track record and significant assets under management. Vista Equity Partners and Onex Corporation are also key players in the investment landscape, with respective focuses on enterprise software and technology-enabled organizations, and long-term value creation for their global ecosystem of investors, companies, customers, and employees.

The acquisition by Bain Capital marks a significant milestone for Powerschool, signaling new opportunities for growth and innovation in the K-12 education technology space. Following these announcements, the company's shares moved 0.1%, and are now trading at a price of $22.4. For more information, read the company's full 8-K submission here.

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