KKR & Co. (KKR) on July 25, 2024, acquired U.S. education software provider Instructure Holdings, Inc. (INST) in a deal valued at about $4.8 billion, including debt.
As per the terms of the merger agreement, KKR with participation from Dragoneer Investment Group, will acquire Instructure for $23.60 per share in cash, representing a premium of 3.83% from the stock’s last close.
Instructure is a global provider of cloud-based learning and assessment systems, offering a range of products including Canvas LMS, Canvas Studio, and Mastery Assessment to enhance education and student success worldwide.
KKR is a global private equity and real estate investment firm specializing in a wide range of investments, including buyouts, credit, growth equity, and real estate across diverse industries and regions.
In May, reports of private equity firm Thoma Bravo exploring a sale for the educational software provider made rounds. The stock was trading at $20.27 then. Bloomberg last week reported that KKR had emerged as the front-runner to acquire Instructure.
Instructure’s current Price/Sales (TTM) ratio is 5.90, above the sector median of 3.00.
KKR will buy out the stake owned by Instructure’s majority owner, Thoma Bravo, which took the company public in 2021. KKR is making its investment in Instructure through its North America Fund XIII.
Salt Lake-based Instructure will become a privately held company after the deal is closed, which is expected later this year.
To explore more specifics of this M&A transaction, please visit the Deal Metrics page:
Deal Metrics for the acquisition of Instructure Holdings, Inc. (INST) by KKR (KKR).
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Editor’s Note: Baranjot Kaur contributed to this article