Bain Capital to take PowerSchool Private in a $5.6 Billion Cash Deal

Education technology company PowerSchool Holdings Inc. (PWSC) entered a definitive merger agreement on June 7, 2024, to be acquired by Bain Capital for $5.6 billion.

Deal Structure:

Under the terms of the agreement, PowerSchool stockholders will receive $22.80 per share in cash from Bain Capital, representing a premium of 1.92% from the stock’s last close.

Company Profile:

PowerSchool is a cloud-based K-12 education software supporting over 55 million students and 17,000 customers in over 90 countries. Its products include Schoology Learning and Naviance CCLR, which manage student data, enrollment, attendance, and more.

PowerSchool was acquired by private equity firm Vista from Pearson in 2015. In 2018, Canadian private equity firm Onex invested in PowerSchool alongside Vista, becoming equal equity partners. The company went public in 2021, with Vista and Onex retaining ownership stakes.

Deal Details and Timeline:

Upon completion of the transaction, which is expected in the second half of 2024, Vista Equity Partners and Onex Partners will continue to have minority investments in PowerSchool.

PowerSchool’s current Price/Sales (TTM) ratio is 5.08, above the sector median of 2.99.

The company will no longer be publicly listed on the New York Stock Exchange after the deal is completed.

The Wall Street Journal reported last month that Bain was in talks to take PowerSchool private, following which private equity firm Warburg Pincus was also interested in the education tech company.

Deal Metrics:

To delve into more specific details of the above M&A transaction, please visit the Deal Metrics page here:

Deal Metrics for the acquisition of PowerSchool Holdings, Inc. (PWSC) by Bain Capital

The Deal Metrics page for each merger or acquisition includes:

• A spread history chart of the merger from announcement through eventual completion or failure.
• Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
• News and SEC filings.
• A history of deal updates.
• And a whole lot more.

Disclaimer: This article is meant to inform and should not be used as a basis for investment decisions. Please conduct thorough personal research before trading any securities mentioned herein. We do not guarantee the comprehensive accuracy of the content or data provided in this article.

Editor’s Note: Baranjot Kaur contributed to this article