Bain Capital has agreed to acquire education software provider PowerSchool Holdings Inc. in a transaction worth $5.6 billion. The private equity firm will pay $22.80 per share in cash for the Folsom, California-based company, marking a 37% premium to PowerSchool’s unaffected share price as of May 7, the last trading day prior to media reports about a potential deal. A statement on Friday confirmed the acquisition.
PowerSchool, which counts most of the largest school districts in the U.S. among its customers, provides cloud-based software for teacher assessments, hiring processes, and learning management systems. The company had also attracted takeover interest from Warburg Pincus, another private equity player.