Instructure Holdings (INST) announced on Thursday that it has entered into a definitive agreement to be acquired by investment funds managed by investment firm KKR, for $23.60 per share in an all-cash transaction valued at approximately $4.8 billion in enterprise value.
Instructure’s shares rose more than 1% in premarket trading following the announcement.
The per-share purchase price represents a 16 percent premium over Instructure's unaffected share price of $20.27 as of May 17, 2024, the last trading day before media reports of a potential transaction.
KKR, with participation from Dragoneer Investment Group, will acquire all outstanding shares, including those owned by Instructure's current majority owner, Thoma Bravo, an investment firm that took the company public in 2021.
"Our leadership team laid out an aggressive go-forward strategy in our investor day presentation earlier this year," said Instructure CEO Steve Daly in a press release.
"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."
Instructure is an education technology (EdTech) company that provides learning management systems, notably Canvas, to help schools and institutions manage online teaching and student engagement.
The KKR acquisition, which was unanimously approved by the Instructure Board of Directors, is expected to close later this year, subject to customary closing conditions, including receipt of required regulatory approvals.
Upon completion of the transaction, Instructure's common stock will be delisted from the New York Stock Exchange, and the company will become privately held. Instructure will continue to be headquartered in Salt Lake City.
The company plans to publish its second quarter 2024 financial results on August 2, 2024, but will not host a live conference call.