Global education software provider PowerSchool agreed to be acquired by Bain Capital in a deal valued at $5.6 billion, the companies announced Friday.
The deal will take PowerSchool off the public market, where it debuted in July 2021.
Bain’s offer prices PowerSchool’s stock price at $22.80, a 37 percent premium compared to its $16.64 closing price on May 7, the last day before media outlets reported the potential Bain acquisition.
Shares traded at at $22.45 at market open Monday.
Previous investors Vista Equity Partners and Onex Partners will retain minority investments in PowerSchool. The deal is expected to close in the second half of 2024.
Boston-based Bain Capital, a private investment firm, oversees about $185 billion in assets under management.
PowerSchool’s software offerings include a student information system and other data management tools for districts. Its products span an array of uses in school districts, from financial and human resources tools for school systems; to student absenteeism and behavior support; to college and career planning.
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Bain Capital Partner Max de Groen said in a statement that as demand for K-12 software grows, the private equity firm sees “significant opportunities to expand access to PowerSchool’s best-in-class product suite around the world.”
Based in Folsom, Calif., PowerSchool has traded hands numerous times since it was founded in 1997, including being owned by Apple, Pearson, and Vista Equity Partners.
PowerSchool debuted on the NYSE nearly three years ago with an IPO of $18 a share, with CEO Hardeep Gulati saying the move was “a key part” of the company’s strategy to continue building its platform.”
In a statement on the Bain acquisition, Gulati said the firm’s support will provide PowerSchool with “access to additional resources and the flexibility to deliver even more growth and innovation.”
Bain’s backing will be particularly helpful as it aims to scale its reach and further build out its generative AI platform PowerBuddy, Gulati added.
In an interview with EdWeek Market Brief earlier this year, PowerSchool chief product and innovation officer Shivani Stumpf said that the company is working to integrate artificial intelligence across several of its core products, while also adhering to guidelines it has established for ethical AI usage.
