PowerSchool Holdings, Inc. (PWSC), a prominent provider of cloud-based software tailored for K-12 education, announced on Friday that it has entered into an agreement to be acquired by Bain Capital, LP for $5.6 billion.
According to the terms of the agreement, PowerSchool shareholders will receive $22.80 per share in cash, reflecting a 37% premium over the company's unaffected share price of $16.64 as of May 7.
Hardeep Gulati, CEO of PowerSchool, commented, "With Bain Capital's backing, PowerSchool will gain access to additional resources and the flexibility to drive further growth and innovation, particularly with our generative AI platform, PowerBuddy. This will enable us to scale our global presence and help schools customize education for every student's journey."
Following the completion of the transaction, which is expected to close in the second half of the year, PowerSchool will operate as a privately held company and its shares will no longer be listed on the NYSE.
After the transaction, Vista Equity Partners and Onex Partners will maintain minority investments in PowerSchool.
