In a notable move within the private equity and educational technology sectors, KKR & Co. has agreed to purchase Instructure Holdings Inc., a provider of educational software, for approximately $4.8 billion. The buyout will see KKR paying $23.60 a share in cash, which translates into about a 4% premium over Instructure’s last closing price.
Instructure, based in Salt Lake City, had been exploring its options with an adviser after it received interest from potential acquirers. KKR emerged as the leading contender to acquire the company, according to reports. This acquisition will also see Thoma Bravo exiting its position in Instructure, with Dragoneer Investment Group participating alongside KKR in the deal.
Despite this recent acquisition, shares of Instructure have experienced a decline of approximately 16% this year, underscoring the challenging market conditions the company has faced. The transaction reflects a continued trend of private equity interest in the educational technology sector, which has seen significant investment and consolidation activity in recent years.
For further details on the acquisition, you can access the Bloomberg Law article here.