Bain Capital agrees to acquire PowerSchool in $5.6 billion transaction

PowerSchool Holdings, a Folsom, California provider of cloud software for K-12 schools, announced on June 7, 2024 that it had agreed to be acquired by the private equity firm Bain Capital. The transaction valued the company at $5.6 billion on an enterprise basis.

Shareholders were to receive $22.80 in cash per share, a 37 percent premium over the unaffected closing price of $16.64 on May 7, 2024. Vista Equity Partners and Onex Partners, already investors in the company, would continue to hold minority stakes after the deal. The parties expected to close in the second half of 2024, subject to regulatory approvals and customary conditions. Once complete, PowerSchool would become a private company and its shares would no longer trade on the New York Stock Exchange.

PowerSchool's products span student information, learning platforms, assessment, analytics and college and career readiness, and include Schoology Learning and Naviance. According to the announcement, its software supports more than 55 million students through over 17,000 customers in more than 90 countries, among them over 90 of the 100 largest school districts in the United States by enrollment.