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Bain to acquire edtech PowerSchool in $5.6bn deal

Private multi-asset alternative investment firm Bain Capital is to acquire PowerSchool Holdings, a provider of cloud-based software for K-12 education, in a transaction valuing the business at $5.6bn.

Under the terms of the agreement, PowerSchool stockholders will receive $22.80 per share in cash upon completion of the proposed deal. The per share purchase price represents a premium of 37% over PowerSchool’s unaffected share price of $16.64 as of 7 May 2024, the last trading day prior to media reports regarding a potential transaction.

According to a press statement, PowerSchool supports over 55 million students and over 17,000 customers in more than 90 countries. The company will remain a standalone company, and its business operations and customer service will continue to function.

Vista Equity Partners and Onex Partners will continue to have minority investments in PowerSchool.

Goldman Sachs & Co and Kirkland & Ellis are advising PowerSchool. Centerview Partners and Freshfields Bruckhaus Deringer LLP are advising the special committee of the PowerSchool board of directors. Ropes & Gray are advising Bain Capital.

Debt financing for the transaction will be provided by Ares Capital Management, HPS Investment Partners, Blackstone Alternative Credit Advisors, Blue Owl Credit Advisors, Sixth Street Partners and Golub Capital.

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