PowerSchool Holdings, Inc. (NYSE: PWSC), a premier provider of cloud-based software for K-12 education, has announced that it has entered into a definitive agreement to be acquired by Bain Capital. The transaction, valued at $5.6 billion, marks a substantial premium over PowerSchool’s last unaffected share price.
Under the definitive agreement, PowerSchool stockholders will receive $22.80 per share in cash upon the completion of the transaction. This represents a 37 percent premium over the share price of $16.64 as of May 7, 2024.
Hardeep Gulati, Chief Executive Officer of PowerSchool said, “PowerSchool is a leader in K-12 SaaS technology in North America and is uniquely positioned to provide differentiated, mission-critical solutions that drive better education outcomes, empower educators, and help district operations run more efficiently.”
“With Bain Capital’s support, PowerSchool will have access to additional resources and the flexibility to deliver even more growth and innovation, particularly with PowerBuddy, our generative AI platform, and scale our global reach in helping schools personalize education for every student journey,” he added.
PowerSchool, which supports over 55 million students and more than 17,000 customers across more than 90 countries, will continue to operate as a standalone company post-acquisition. The company’s commitment to providing comprehensive educational and operational technology solutions remains unchanged.
The merger has been approved by the PowerSchool Board of Directors and stockholders holding a majority of the outstanding voting securities. No further action by other stockholders is required for the transaction to proceed.
The acquisition is expected to close in the second half of 2024, subject to customary closing conditions and regulatory approvals¹. Upon completion, PowerSchool’s common stock will no longer be publicly listed on the New York Stock Exchange.
This strategic acquisition is poised to enhance PowerSchool’s growth and innovation capabilities, particularly with its generative AI platform, PowerBuddy, and expand its global reach in personalizing education for every student journey.
David Humphrey, a Partner at Bain Capital, said, “PowerSchool’s innovative software solutions in and out of the classroom provide a strong foundation for K-12 academic success. 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”.
“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. We look forward to working with PowerSchool to accelerate the Company’s growth while strengthening its commitment to help educators and students realize their full potential,” added Max de Groen, a Partner at Bain Capital.