Bain Capital Enters Talks to Acquire Education Software Provider PowerSchool

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Private equity firm Bain Capital is currently engaged in negotiations to acquire education software provider PowerSchool, according to a source familiar with the matter on Wednesday.

While the deal has yet to be finalized and is expected to take a few more weeks, discussions suggest that PowerSchool could be valued in the range of the $20s per share. This valuation could potentially place PowerSchool at approximately $6 billion, inclusive of debt, based on calculations by Reuters.

Following reports of the talks with Bain, PowerSchool’s shares experienced a significant surge, climbing up to 27% during early trading on Wednesday morning. With a current market capitalization of approximately $4.1 billion, the potential deal highlights a renewed interest in private equity-led buyouts, which have shown signs of revival after a slowdown in the previous year due to higher interest rates impacting debt financing for leveraged buyouts.

Headquartered in Folsom, California, PowerSchool offers cloud-based software solutions tailored for K-12 education across North America. The company has roots tracing back to 1983 when Greg Porter, as a teenager, initially developed record-keeping software for his high school. This grassroots initiative eventually evolved into PowerSchool, with its solutions now widely utilized in educational institutions across the continent.