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PE firm Thoma Bravo to buy Instructure in $2 bln all-cash deal

Credit: REUTERS/DADO RUVIC

Education software firm Instructure Inc said on Wednesday it would be bought by private equity investment firm Thoma Bravo in an all-cash deal for about $2 billion, giving into pressure from one of its shareholders pushing for a sale.

Adds background, shares

Dec 4 (Reuters) - Education software firm Instructure Inc INST.N said on Wednesday it would be bought by private equity investment firm Thoma Bravo in an all-cash deal for about $2 billion, giving into pressure from one of its shareholders pushing for a sale.

Stockholders of the company will receive $47.60 in cash per share, a discount of about 10% to Instructure's closing price of $52.96 on Tuesday.

Shares of the company were down about 10% at $47.85 in premarket trading.

New York-based Sachem Head Capital Management has been buying Instructure's shares over time, but the exact size of its position could not be determined.

The deal includes a 35-day "go-shop" period, which allows Instructure's board and advisers to consider alternative offers, the company said.

Chief Executive Officer Dan Goldsmith and the current management team would retain their roles after the deal, which is expected to close in the first quarter of 2020.

Earlier last month, Instructure had said it was reviewing strategic alternatives that included continuing as a standalone public company, going private, or being purchased by a strategic partner.

J.P. Morgan Securities LLC and Cooley LLP will be serving as Instructure's financial and legal advisers for the deal. Kirkland & Ellis is serving as legal adviser to Thoma Bravo.

(Reporting by Ambhini Aishwarya in Bengaluru; Editing by Rashmi Aich)

((Ambhini.Aishwarya@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 0543;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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