Private equity firm Thoma Bravo acquires Instructure in $ 2 billion all-cash deal

(Reuters) – Educational Software Company Instructure Inc INST.N on Wednesday announced that it would be acquired by private equity firm Thoma Bravo in an all-cash deal for around $ 2 billion, ceding to pressure from one of its shareholders pushing for a sale.

The company’s shareholders will receive $ 47.60 in cash per share, a discount of about 10% from Instructure’s closing price of $ 52.96 on Tuesday.

The company’s shares were down about 10% to $ 47.85 in pre-market trading.

New York-based Sachem Head Capital Management bought the shares of Instructure over time, but the exact size of his position could not be determined.

The agreement includes a 35-day go-shop period, which allows Instructure’s board of directors and advisors to consider alternative offerings, the company said.

CEO Dan Goldsmith and the current management team would retain their roles after the deal, which is expected to be finalized in the first quarter of 2020.

Earlier last month, Instructure said it was examining strategic alternatives that included remaining as a stand-alone state-owned enterprise, privatization or purchase by a strategic partner.

JP Morgan Securities LLC and Cooley LLP will serve as Instructure’s financial and legal advisers for the transaction. Kirkland & Ellis is the legal advisor to Thoma Bravo.

Report by Ambhini Aishwarya in Bangalore; Editing by Rashmi Aich

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