PowerSchool, a cloud-based student information system provider, is going private in an acquisition by Bain Capital.
The deal, valued at $5.6 billion, will pay shareholders of the currently publicly traded company $22.80 per share once completed. Vista Equity Partners and Onex Partners will maintain minority investments in the company.
PowerSchool — which is used by over 55 million students and 17,000 educational customers in more than 90 countries — will remain a standalone company, and no disruption in service or operations is expected as a result of the deal, according to a news release.
PowerSchool’s products include its flagship student information system and platforms for personalized learning, student success and intervention, talent recruitment and retention, and college and career readiness.
In a statement, PowerSchool CEO Hardeep Gulati said the deal with Bain will help the K-12 software provider expand and strengthen its offerings.
“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,” Gulati said.
Bain Capital’s other education investments include Rise, a provider of after-school English language programs in China, and Varsity Brands, a provider of school athletic uniforms and equipment.
David Humphrey, a partner at Bain Capital, touted the strength of PowerSchool’s software platforms in the K-12 market.
“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,” said Humphrey.
The deal is expected to close in the second half of 2024.
