Who Owns PowerSchool and How Did Bain Capital Acquire It

PowerSchool is a leading education technology company that provides a range of products and services to schools and districts.

The company was acquired by a private equity firm, but it's not just any firm - it's Bain Capital.

Bain Capital acquired PowerSchool in 2015, and since then, the company has continued to grow and expand its offerings.

PowerSchool was acquired by Bain Capital in a $5.6 billion deal.

The acquisition is the latest in a swathe of take-private deals led by private equity firms seeking a bargain on underperforming enterprise software firms. PowerSchool is a web-based platform that helps educational institutions manage operations such as enrollment, grades, attendance and communications with parents and students.

Bain Capital’s bid weighs in at $22.80 per share in cash, representing a 37% premium on PowerSchool’s May 7 closing share price of $16.64. This deal is expected to close in the second half of 2024, subject to regulatory and shareholder approvals.

Bain Capital has completed its acquisition of PowerSchool in a $5.6 billion deal.

The acquisition is expected to help PowerSchool expand and strengthen its offerings, according to CEO Hardeep Gulati.

PowerSchool will remain a standalone company with no disruption in service or operations.

The company's products include its flagship student information system and platforms for personalized learning, student success, and college and career readiness.

Bain Capital's bid weighed in at $22.80 per share in cash, representing a 37% premium on PowerSchool's May 7 closing share price of $16.64.

Existing investors Vista and Onex will retain minority investments in PowerSchool once the deal concludes.

The acquisition is the latest in a swathe of take-private deals led by private equity firms seeking a bargain on underperforming enterprise software firms.

PowerSchool's products are used by over 55 million students and 17,000 educational customers in more than 90 countries.

PowerSchool was founded in 1997 by Greg Porter, initially as a student information system for schools.

The company was acquired by Apple in 2001 for $62 million in Apple stock, a figure that would be worth around $26 billion today.

Apple sold PowerSchool to Pearson five years later, which in turn sold it on to Vista Equity Partners in 2015.

PowerSchool went public in 2021 with an initial valuation of around $3.5 billion.

The company has since experienced peaks and troughs in valuation, including a surge to $5.5 billion in late 2021 before falling to $1.8 billion within a year.

The deal is expected to close in the second half of 2024.

PowerSchool Group LLC was acquired by Vista Equity Partners in August 2015.

The acquisition marked a new phase of growth for PowerSchool, which was previously part of Pearson plc. PowerSchool is a leading provider of student information systems and services in K-12 education.

Hardeep Gulati was appointed as the new CEO of PowerSchool following the acquisition. Gulati has 16 years of experience as an executive for software and technology companies.

He previously served as CEO of SumTotal Systems, a market leader in enterprise talent and learning management solutions that served more than half of the Fortune 500 companies.

PowerSchool's products and services are used by more than 40 million users around the globe.

PowerSchool is being taken private by Bain Capital in a $5.6 billion deal. This acquisition is the latest in a series of take-private deals led by private equity firms seeking a bargain on underperforming enterprise software firms.

The deal will pay shareholders $22.80 per share in cash, representing a 37% premium on PowerSchool's May 7 closing share price of $16.64. This premium is a significant increase from its initial valuation of around $3.5 billion when it went public in 2021.

Bain Capital expects to close the acquisition in the second half of 2024, subject to regulatory and shareholder approvals. Existing investors Vista and Onex will retain minority investments in PowerSchool once the deal concludes.

PowerSchool's products include its flagship student information system and platforms for personalized learning, student success, and intervention. The company's acquisition by Bain Capital will help it expand and strengthen its offerings, according to CEO Hardeep Gulati.

PowerSchool's products are used by over 55 million students and 17,000 educational customers in more than 90 countries. The company's acquisition by Bain Capital will give it access to additional resources and the flexibility to deliver even more growth and innovation.