Robert F. Smith's Vista Equity Partners Retains A Minority Investment In PowerSchool Holdings, Which Was Acquired For Approximately $5.6B

Following PowerSchool Holdings Inc.’s multi-billion-dollar acquisition, Vista Equity Partners has retained its minority stake in the company.

According to a press release, PowerSchool Holdings Inc., which operates as a cloud-based K-12 education software, was acquired by Bain Capital through a transaction that was valued at an estimated $5.6 billion, with the company paying $22.80 per share in cash.

Bain Capital plans to build on PowerSchool’s successful track record, with its software impacting 60 million students and 18,000 customers across more than 90 countries.

“PowerSchool is aligned, throughout its entire organization, to its mission to personalize education and improve learning outcomes,” David Humphrey, a partner at Bain Capital, said. “We’ve had the privilege of seeing the leadership team’s dedication to this mission through a world-class product innovation engine.”

Bain Capital Partner Max de Groen added, “We are thrilled to support PowerSchool’s mission and growth as it becomes a private company. This is a significant milestone that builds on PowerSchool’s strong foundation and vast potential to deliver the power of its exceptional software solutions to a growing number of administrators, educators, parents, and students worldwide.”

Furthermore, both Vista Equity Partners, led by Robert. F Smith — who was recently deemed America’s second-richest Black man — and Onex Partners, will retain their minority investment in PowerSchool.

“Since our initial investment, PowerSchool has experienced a significant transformation, driven by strong leadership and our partnership with Hardeep,” said Monti Saroya, co-head of Vista’s Flagship Fund and senior managing director. “We are confident that PowerSchool’s relentless focus on product innovation—especially through embracing generative AI—and tactical expansion of its capabilities can further enhance education globally in this next phase.”

Hardeep Gulati, CEO of PowerSchool, commented:

“We could not be more excited to enter this next phase of PowerSchool’s development, which will further its mission of delivering differentiated education software to drive better student outcomes, empower educators, and help districts operate more efficiently.”