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NEW YORK — Bain Capital has reached an agreement to acquire PowerSchool Holdings Inc., a provider of cloud-based software for K-12 education, in a transaction valued at $5.6 billion, the companies announced in a statement on Friday.

The acquisition will see PowerSchool shareholders receive $22.80 per share, a 37% premium to the company’s May 7 closing price, before news of a potential deal surfaced. The stock showed minimal movement on Friday morning after rising over 34% in the past month.

Upon completion, PowerSchool will be delisted from the New York Stock Exchange and become a private company. Vista Equity Partners and Onex Partners will retain minority stakes in PowerSchool.

“With Bain Capital's support, PowerSchool will have access to additional resources and the flexibility to deliver even more growth and innovation, particularly with PowerBuddy, our generative AI platform, and scale our global reach in helping schools personalize education for every student journey,” said Hardeep Gulati, CEO of PowerSchool.

The transaction, anticipated to close in the second half of 2024, is subject to regulatory approvals. PowerSchool’s board, advised by its special committee, has approved the merger, and stockholders holding a majority of the outstanding shares have also given their approval.

PowerSchool’s platform serves over 55 million students and 17,000 customers across more than 90 countries. The company will continue operating independently after the acquisition.

“We look forward to working with PowerSchool to accelerate the company's growth while strengthening its commitment to help educators and students realize their full potential,” stated Max de Groen, a partner at Bain Capital.

Centerview Partners LLC is acting as the exclusive financial adviser to Bain. Debt financing will be provided by Ares Capital Management, HPS Investment Partners, Blackstone Alternative Credit Advisors, Blue Owl Credit Advisors, Sixth Street Partners, and Golub Capital. Goldman Sachs & Co. serves as the exclusive financial adviser to PowerSchool.

Legal representation for Bain is provided by Ropes & Gray LLP, while Kirkland & Ellis LLP is representing PowerSchool. Freshfields Bruckhaus Deringer LLP is advising a special committee of PowerSchool's board.

The Kirkland team representing PowerSchool is led by corporate partners David Klein, Andrew Norwich, and Daniel Wolf, along with executive compensation partners Rohit Nafday and Anthony Ji; tax partners Heidi Yuen and David Kung; antitrust and competition partners Marin and Jack Coles; debt finance partners Sonali Jindal and Douglas Tedeschi; government contracts partner Boyd Greene; and capital markets partner Robert Goedert.

Freshfields’ team includes M&A partners Damien Zoubek and Sanjay Murti, and tax partner Claude Stansbury.

Details on the legal team from Ropes & Gray representing Bain were not immediately available.