December 4, 2019 / 1:59 PM / 10 days ago

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

(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

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