Bain Capital Goes Big In EdTech: PowerSchool Acquisition Valued At $5.6B
Portfolio Pulse from Lekha Gupta
Bain Capital is acquiring PowerSchool Holdings (NYSE:PWSC) for $5.6 billion, offering $22.80 per share in cash, a 37% premium over the previous share price. Post-acquisition, PowerSchool will be delisted from the NYSE. Vista Equity Partners and Onex Partners will retain minority stakes. The tax receivable agreement was amended to avoid $450 million in payments. Bain Capital aims to expand PowerSchool globally, though concerns about debt and layoffs remain.
June 07, 2024 | 3:36 pm
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Bain Capital is acquiring PowerSchool Holdings for $5.6 billion, offering $22.80 per share, a 37% premium. Post-acquisition, PWSC will be delisted from the NYSE. The tax receivable agreement was amended to avoid $450 million in payments.
The acquisition by Bain Capital at a significant premium is likely to boost PWSC's stock price in the short term. The delisting from NYSE and the amendment to the tax receivable agreement are also critical factors for investors.
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