Vista Equity, led by America’s second-richest Black person, aims to finalize $5.6-billion acquisition of PowerSchool

Feyisayo Ajayi -
Key Points
  • Vista Equity Partners in partnership with Bain Capital has taken PowerSchool private in a $5.6-billion acquisition, advancing its commitment to ed-tech-driven innovation.
  • The deal signifying the closing of a transformative phase will now have PowerSchool under private ownership with the company’s common stock delisted from the NYSE.
  • Vista’s leadership has generated $14.3 billion in gains since 2021, enhancing its portfolio with PowerSchool’s high-growth potential.

Vista Equity Partners, led by Robert F. Smith, America’s second-wealthiest Black person, in partnership with Bain Capital, has successfully taken PowerSchool Holdings private in a $5.6-billion acquisition.

The deal reflects the growing demand for cloud-based education software and reinforces Vista’s commitment to enhancing student-driven technological innovations with a strategic focus in the education sector.

Significant shareholder value amid taking PowerSchool private

The deal, announced via a filing with the New York Stock Exchange, values PowerSchool at $22.8 per share, translating to an enterprise value of $5.6 billion. Robert F. Smith's Vista Equity, known for its deep expertise in enterprise software, will retain a minority interest in PowerSchool alongside Onex Partners.

Since its initial investment, Vista has overseen a transformative phase for PowerSchool, marked by strong leadership under CEO Hardeep Gulati.

PowerSchool, a leading cloud-based K-12 education software provider, supports over 60 million students across 18,000 schools in more than 90 countries. The company’s software suite spans multiple facets of educational and operational management, designed to support educators, students, administrators, and parents alike.

With PowerSchool now under private ownership, the company’s common stock has been delisted from the NYSE, signifying the closing of this transformative chapter.

This acquisition signals a broader trend of consolidation in the ed-tech space, where private equity sees value in scalable solutions that modernize and revolutionize traditional education systems.

Vista’s Co-Head of Vista’s Flagship Fund and Senior Managing Director, Monti Saroya, reaffirmed the investment firm’s confidence in PowerSchool’s ongoing evolution, particularly its focus on AI-driven product innovation. He said: “Since our initial investment, PowerSchool has experienced a significant transformation, driven by strong leadership and our partnership with Hardeep.”

Vista Partners targets high-growth ed-tech

With $101 billion in assets under management, Vista Equity Partners has a strong track record of identifying and investing in high-growth technology companies.

Under Robert F. Smith's leadership, the firm has realized $14.3 billion in gains since 2021 and raised $20 billion for its latest flagship fund.

The landmark deal of PowerSchool adds to Vista's extensive portfolio and signals a renewed focus on enhancing educational experiences globally through AI and cloud-based software solutions.