KKR Bets Big On Education With Instructure Purchase For $4.8B

KKR & Co. Inc. KKR managed investment funds inked a deal to acquire Instructure Holdings, Inc. INST for $23.60 per share in a $4.8 billion all-cash deal.

The purchase price of $23.60 per share is a 16% premium over Instructure’s unaffected share price of $20.27 on May 17, 2024, the last trading day before news of the potential transaction, per a statement released yesterday.

Instructure provides learning management and education-tech solutions that supports 200 million learners in over 100 countries. With over 1,000 partners, it aims to reach $1 billion in revenue by 2028.

Webster Chua, Partner at KKR, said, “Instructure has evolved into an expansive platform focused on delivering strong student outcomes under Thoma Bravo’s stewardship. We look forward to working with Steve and the Instructure management team to accelerate growth and continue scaling its global portfolio of products.”

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

Brian Jaffee, a Partner at Thoma Bravo, said, “Since our initial investment four and a half years ago, it’s been an incredible journey supporting such an important company in the global education technology market. Instructure has evolved into a true platform technology provider and we look forward to watching the KKR team build on the company’s impressive foundation in the years to come.”

The Instructure Board of Directors has unanimously approved the transaction, which is expected to close later this year, pending customary conditions and regulatory approvals.

The deal also requires written consent from stockholders holding a majority of Instructure’s voting securities; no further stockholder action will be needed once this consent is delivered.

After the transaction, Instructure’s common stock will be delisted from the New York Stock Exchange, and the company will become privately held while remaining headquartered in Salt Lake City.

As of the first quarter, KKR’s cash and Investments totaled $14.6 billion.

Yesterday, the company disclosed that its investment funds acquired Marmic Fire & Safety, a top provider of fire equipment inspection, testing, and maintenance services, from HGGC for an undisclosed amount.

Also Read: T-Mobile Dials Up A Major Broadband Expansion: Teams With KKR To Acquire Metronet

KKR stock has gained around 92% in the last 12 months. Investors can gain exposure to the stock via FM Focus Equity ETF FMCX and EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF LBO.

KKR will release its second-quarter 2024 financial results on July 31, 2024.

Price Action: KKR shares closed higher by 0.85% at $116.71 on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image: Shutterstock/ MD Duran