Learning-management-software company Instructure to go private in $4.8 billion deal

By Steve Gelsi

KKR paying $23.60 a share for Salt Lake City company that's been backed by Thoma Bravo

Instructure Holdings Inc.'s stock rose 2% on Thursday after the Salt Lake City-based learning-management-software company said it agreed to be taken private by KKR & Co. Inc. for about $4.8 billion.

Instructure (INST) said KKR & Co. (KKR) will pay $23.60 a share for the company. The price amounts to a premium of 16% over Instructure's share price on May 17, when word of a pending deal initially surfaced.

The $23.60 per-share purchase price is also a premium of about 4% over its closing price of $22.73 on Wednesday.

Instructure Chief Executive Steve Daly will remain in his job after the deal closes, the company said.

Webster Chua, a partner at KKR, said the firm plans to work with Instructure to "accelerate growth and continue scaling its global portfolio of products."

Private-equity firm Thoma Bravo invested in Instructure in 2019 and took it public in July 2021.

The company's stock price peaked at about $28 a share in 2023 and fell to below $20 a share this April.

Including Thursday's moves, Instructure's stock has fallen 14% this year, compared to a 13.7% gain by the Nasdaq COMP.

-Steve Gelsi

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07-25-24 1041ET

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