Arco Platform Agrees To Go Private Via $1.5B Merger Deal

Arco Platform Ltd ARCE has entered into an agreement and plan of merger with Achieve Holdings and Achieve Merger Sub, a wholly owned subsidiary of Bidders' HoldCo.

Investment entities affiliated with General Atlantic L.P. and Dragoneer Investment Group, LLC have agreed to acquire all of the outstanding shares of the company for a purchase price of $14.00 per share in cash.

The per share merger consideration represents a 55% premium over the unaffected closing price of $9.04 on November 30, 2022. The enterprise value of the acquisition is about $1.5 billion.

The merger is currently expected to close during the fourth quarter of 2023 or the first quarter of 2024.

Arco held R$837.7 million in cash and equivalents as of March 31, 2023.

Price Action: ARCE shares closed higher by 0.17% at $11.95 on Thursday.