Yahoo Finance PowerSchool (PWSC) to be Acquired by Bain Capital for $5.6B
PowerSchool Holdings, Inc. PWSC entered into a definitive agreement to be acquired by — one of the world’s leading private multi-asset alternative investment firms — Bain Capital. The transaction, valued at $5.6 billion, is expected to close in the second half of 2024, subject to customary closing conditions, including regulatory approvals.
Per the deal, PowerSchool stockholders will receive $22.80 per share in cash when the transaction is completed. This price represents a 37% premium over PWSC’s share price of $16.64 on May 7, 2024, the last trading day before media reports about a potential transaction.
The company’s shares rose 0.4% during the trading session on Jun 7, 2024.
Vista Equity Partners & Onex Partners to Retain Minority Stakes
Vista Equity Partners have supported PowerSchool in driving digital transformation within K-12 education. Vista's ongoing investment in PWSC reflects its belief in the enduring importance of software in the evolving educational landscape. This partnership facilitated innovation, particularly in addressing the challenges of remote learning and developing AI-assisted learning tools.
The collaboration with Onex Partners played a crucial role in enhancing the educational experience and outcomes for students, educators, administrators and parents. Their joint efforts have aimed to propel PWSC's technology leadership and global impact in the next phase of its development.
Future Growth Prospects for PowerSchool
PowerSchool, a global education technology company, serves over 55 million students and more than 17,000 customers across 90 countries. The company integrates top-notch K-12 educational and operational technology to support every stage of the learning journey. PWSC will continue operating as a standalone company, ensuring seamless business operations and customer service.
The leading provider of cloud-based software for K-12 education, PWSC excels in North America's SaaS technology. It offers distinctive, mission-critical solutions fostering improved education outcomes and aiding educators and district operations. With Bain Capital's backing, PowerSchool will gain added resources and flexibility for growth and innovation, notably with its generative AI platform, PowerBuddy, and will expand its global educational reach.
The company's innovative software solutions inside and outside the classroom establish a robust foundation for K-12 academic success. Its products garner high respect from administrators, educators, students and parents, fostering active collaboration and providing actionable insights crucial for positive learning outcomes.
As the demand for K-12 educational technology rises, there are significant opportunities to expand access to the company's best-in-class product suite worldwide. The move is expected to accelerate its growth while reinforcing its dedication to aiding educators and students in realizing their full potential.
Image Source: Zacks Investment Research
Shares of this cloud-based software provider for K-12 education in North America inched up 17.2% in the past year compared with the Zacks Schools industry’s 39.8% growth.
Zacks Rank & Key Picks
PowerSchool currently carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks from the Zacks Consumer Discretionary sector.
Strategic Education, Inc. STRA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
STRA has a trailing four-quarter earnings surprise of 36.2%, on average. The stock has gained 46.4% in the past year. The Zacks Consensus Estimate for STRA’s 2024 sales and earnings per share (EPS) indicates an increase of 6.4% and 33.3%, respectively, from year-ago levels.
Netflix, Inc. NFLX presently sports a Zacks Rank of 1. NFLX has a trailing four-quarter earnings surprise of 9.3%, on average. The stock has risen 51.3% in the past year.
The consensus estimate for NFLX’s 2024 sales and EPS suggests a rise of 14.8% and 52.2%, respectively, from the year-ago levels.
Royal Caribbean Cruises Ltd. RCL flaunts a Zacks Rank of 1. RCL has a trailing four-quarter earnings surprise of 18.3%, on average. The stock has surged 65.2% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS suggests growth of 16.8% and 63.7%, respectively, from year-ago levels.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Strategic Education Inc. (STRA) : Free Stock Analysis Report
PowerSchool Holdings, Inc. (PWSC) : Free Stock Analysis Report
