PEOPLE TO THE POWER: PowerSchool and PeopleAdmin, two education technology companies owned by private equity firm Vista Equity Partners, will be merging as part of an investment deal from Onex Group, a Canadian buyout firm.
Terms of the deal were not disclosed, although PEHub, which broke news of the transaction, says the combined company will be valued at “close to $3 billion” and generate annual revenues of “roughly $400 million.” Sources told the publication that Onex and Vista will share ownership.
Vista acquired PeopleAdmin, a provider of talent management software for the educational and government institutions, in 2014. The following year, it purchased PowerSchool, a student information system, from Pearson for $350 million.
Such a deal was anticipated after Reuters reported in January that Vista had hired an investment bank to explore options for the two companies.
According to a press release issued by Onex, the merger will give PowerSchool “capabilities in talent management for K-12 and HigherEd for recruitment, onboarding and teacher professional development.”
It’s yet another addition to PowerSchool, which under Vista’s ownership has vastly expanded its offerings beyond its core student management system product. Since 2015 it has snapped up eight education technology companies that provide learning management systems, assessments, student enrollment and special education support services.
PowerSchool’s CEO Hardeep Gulati will run the combined company from PowerSchool’s headquarters in Folsom, Calif.
