PowerSchool Holdings, which provides an education platform for teachers to collect work, grade, and manage classroom activity, announced terms for its IPO on Monday.
The Folsom, CA-based company plans to raise $750 million by offering 39.5 million shares at a price range of $18 to $20. New investor Canada Pension Plan Investment Board and Select Equity Group has indicated on up to $350 million worth of shares in the offering (47% of the deal). At the midpoint of the proposed range, PowerSchool Holdings would command a fully diluted market value of $3.7 billion.
PowerSchool is a leading provider of cloud-based software to the K-12 education market. The company serves more than 12,000 customers, including 93 of the 100 top districts by student enrollment in the US; has 30 state-, province-, or territory-wide contracts in North America; and sells solutions in over 90 countries globally. Its software is embedded in school workflows and is used on a daily basis by schools and districts representing over 45 million students globally, or over 70% of all K-12 students in the US and Canada.
PowerSchool Holdings was founded in 1997 and booked $453 million in revenue for the 12 months ended March 31, 2021. It plans to list on the NYSE under the symbol PWSC. Goldman Sachs, Barclays, Credit Suisse, UBS Investment Bank, BofA Securities, Jefferies, Macquarie Capital, and RBC Capital Markets are the joint bookrunners on the deal. It is expected to price during the week of July 26, 2021.
