Thoma Bravo Explores Potential Sale of Instructure, Valued at $3 Billion

Thoma Bravo Considers Exit Strategy for Education Software Giant Instructure.

Private equity firm Thoma Bravo has taken steps to explore the sale of its majority stake in Instructure, a leading education software provider with a valuation of $3 billion.

With an 83% ownership stake in Instructure, Thoma Bravo has enlisted the services of JPMorgan Chase (NYSE: JPM) to gauge interest from potential buyers, which may include other private equity firms, according to reports from Reuters.

Following the news of the potential sale, shares of Instructure surged 4.5% in afterhours trading on Friday, reflecting investor optimism about the company's future prospects.

Instructure holds a prominent position in the educational technology sector, offering software solutions to educational institutions worldwide. With a global clientele exceeding 8,000 organizations across more than 100 countries, the company has established itself as a key player in the industry.

Thoma Bravo initially acquired Instructure in a $2 billion deal in 2020, subsequently relisting the company through an initial public offering (IPO) just a year later.

However, despite the promising start, Instructure's stock has struggled to maintain momentum, trading close to its $20 IPO price over the past three years. The surge in demand for remote learning tools during the pandemic has subsided, contributing to increased competition within the sector.

Earlier this year, Instructure sought to diversify its offerings by acquiring Parchment, a company specializing in academic credential management, for $835 million. This strategic move aimed to expand Instructure's portfolio and enhance its position in the education technology market.