KKR to buy Instructure Holdings in $4.8bn deal

25th Jul 2024 13:03

(Sharecast News) - Instructure Holdings said on Thursday that it has agreed to be bought by investment funds managed by KKR in a $4.8bn cash deal.

Instructure is global provider of learning management, education-tech effectiveness and credentialing solutions.

Under the terms of the transaction, KKR will pay $23.60 per share, which represents a premium of 16% to Instructure's share price on 17 May, the last trading day prior to media reports regarding a potential deal.

KKR, with participation from Dragoneer Investment Group, will buy all outstanding shares, including those owned by Instructure's existing majority owner, software investment firm Thoma Bravo, which took the company public in 2021.

Instructure chief executive Steve Daly said: "Our leadership team laid out an aggressive go-forward strategy in our investor day presentation earlier this year.

"We believe Instructure has a significant growth runway as we focus on core markets, unlocking new opportunities and continuing to build the Instructure Learning Ecosystem. It was immediately apparent that KKR is aligned with our long-term vision and growth strategy and we look forward to working closely with them. Together, we'll expect to build on our position as the education platform that powers learning for a lifetime and turns education into opportunities for all learners globally."

The Instructure management team, led by Daly, will continue to lead the company in their current roles.