Vista Equity Partners Management has hired UBS to explore its options.
According to sources familiar with the matter at hand, Vista Equity Partners Management LLC, a private equity firm, is exploring options for two software companies it owns, PeopleAdmin and
PowerSchool, which include their merger in a deal worth in the range of $2 billion to $3 billion.
Schools are increasingly using digital tools to mitigate learning curves and reduce their operational costs.
Eyeing an opportunity, private equities have been taking advantage of the high valuations in the educational technology sector and have cashed out on their holdings.
As a per source, who spoke on the condition of anonymity since the matter is confidential, Vista is working with UBS Group AG, an investment bank, to evaluate its options for the two companies.
The range of options it is exploring involves, selling either a minority/majority stake, recapitalization, merger of both companies, an IPO, or using them companies as a vehicle to buy another target.
As per sources, Vista would like to retain a significant stake in the companies in whichever transaction it chooses. A deal is also not imminent, added the sources.
While Vista and UBS declined to comment, PeopleAdmin and PowerSchool did not respond to requests for comment.
Previously, Vista has combined educational assets to sell them to another company.
Case in point: in 2014 it sold Relias Learning, a combination of two companies, to Bertelsmann SE & Co, Europe’s largest media group.
In 2017, it completed a $1.55 billion deal to acquire Advisory Board’s education business.