Instructure to be acquired by KKR for $4.8B

Instructure (INST) has entered into a definitive agreement to be acquired by investment funds managed by KKR (KKR) for $23.60 per share in an all-cash transaction valued at an enterprise value of approximately $4.8B. The per-share purchase price represents a premium of 16% over Instructure’s unaffected share price of $20.27 as of May 17. KKR, with participation from Dragoneer Investment, will acquire all outstanding shares, including those shares owned by Instructure’s existing majority owner Thoma Bravo. The Instructure management team, led by CEO Steve Daly, will continue to lead the company in their current roles. The company is committed to broadening its platform and delivering $1B in revenue by 2028. KKR is making its investment in Instructure through its North America Fund XIII. KKR will support Instructure in creating a broad-based equity ownership program to provide all of the company’s 1,700 employees the opportunity to further participate in the benefits of ownership after the transaction closes. The transaction, which was unanimously approved by the Instructure Board, is expected to close later this year, subject to customary closing conditions, including receipt of required regulatory approvals. Upon completion of the transaction, Instructure’s common stock will no longer be listed on the NYSE and Instructure will become a privately held company. The company will remain headquartered in Salt Lake City.