US-based school solutions provider PowerSchool has filed for an initial public offering in which it aims to raise up to $100 million.

The firm, which is backed by Vista Equity Partners and Onex Corp, will float its shares on the New York Stock Exchange under the ticker PWSC.

The filing with the US Securities and Exchange Commission confirms reports in February that PowerSchool will pursue an IPO that could value the company at more than $6 billion, including debt.

In a post, Renaissance Capital said that while PowerSchool has stated intentions to raise up to $100 million, “this is likely a placeholder for a deal we estimate could raise up to $750 million”.

PowerSchool is a provider of cloud-based software to the K12 education market.

The company serves more than 12,000 customers, including 93 of the 100 top districts by student enrolment in the US; has 30 state-, province-, or territory-wide contracts in North America; and sells solutions in over 90 countries globally.

Founded in 1997, the California-headquartered firm booked $435 million in revenue for the 12 months ended 31 December, 2020, a net loss of $46.7 million and adjusted EBITDA of $135.6 million.

PowerSchool filed confidentially on December 22, 2020.

Goldman Sachs, Barclays, Credit Suisse, UBS Investment Bank, BofA Securities, Jefferies, Macquarie Capital and RBC Capital Markets are the joint bookrunners on the deal. No pricing terms were disclosed.

The listing of PowerSchool will mark the latest link in a chain of liquidity events in the global school software market.

In December, Capita’s Education Software Solutions (ESS) division, a UK counterpart to PowerSchool, was acquired by Montagu Private Equity, which merged the business with ParentPay, an online school payments platform.

Prior to the takeover of ESS, two of its UK rivals – Arbor Education and The Key – merged, and CBPE Capital, a private equity house, purchased a minority stake in the combined entity.

iSAMS, a provider of school management software to the independent and international school sectors, was last year acquired by IRIS, a private equity-backed software group.

Date published: 8 April 2021

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