Instructure, a global ed tech company known for its tools like Canvas and Parchment, has recently announced that it will be acquired by global investment firm KKR in a $4.8 billion deal. This acquisition will take Instructure private as it aims to further expand its technology portfolio.
Previously, Instructure was publicly traded after Thoma Bravo, the majority owner, briefly took it private in 2020. The acquisition agreement states that KKR, along with Dragoneer Investment Group, will acquire Instructure in an all-cash transaction for $23.60 per share, which is 16% higher than its share price before reports of the acquisition surfaced.
The CEO of Instructure, Steve Daly, expressed confidence in the company’s growth potential, highlighting the focus on core markets and innovation in the Instructure Learning Ecosystem. Daly is expected to continue leading the company post-acquisition. Webster Chua, a partner at KKR, emphasized the importance of accelerating growth and scaling Instructure’s products to deliver strong student outcomes.
One notable aspect of this acquisition is KKR’s plan to offer equity ownership opportunities to Instructure’s 1,700 employees. The firm believes that employee engagement through ownership is crucial in building stronger companies. The deal is set to be finalized later this year, with Instructure scheduled to announce its Q2 earnings on August 2nd.
This acquisition is part of a trend in the ed tech industry, following Bain Capital’s announcement of acquiring PowerSchool for $5.6 billion. PowerSchool, a cloud-based student information system provider, will also be going private in this deal. The focus on acquisitions and privatization in the ed tech sector reflects the growing importance of technology in education and the competitive landscape of the industry.
