Instruction Holdings Sold to KKR and Dragoneer for $4.8 Billion
Deal News | Nov 14, 2024 | EIN
American investment firms KKR & Co. and Dragoneer have concluded their acquisition of the educational company Instruction Holdings, Inc. for a total of $4.8 billion, equivalent to $23.6 per share. With this acquisition, Instruction Holdings will be delisted from the New York Stock Exchange and revert to a privately-held company with its management and headquarters in Salt Lake City, Utah, still intact. The company aims to grow and achieve $1 billion in revenue by 2028. The transaction was facilitated by a $2.05 billion debt package from a consortium of banks managed by Morgan Stanley. KKR first entered into the acquisition agreement for Instruction Holdings in July 2024. The financial structuring included a primary loan amounting to $1.685 billion and a secondary loan of $365 million, each with seven and eight-year terms, respectively. Advisement for the deal was provided by J.P. Morgan Securities LLC and Kirkland & Ellis LLP for Instruction Holdings, with Morgan Stanley & Co. LLC and UBS Investment Bank assisting KKR. KKR is a major player in alternative asset management, with a focus on private equity and loans, and maintains its headquarters in New York. Dragoneer Investment Group, based in San Francisco, manages above $23 billion in assets, investing in prominent companies like Uber and Atlassian. Meanwhile, Instruction Holdings offers educational cloud-based platforms like Canvas Studio and Canvas Network.
Sectors
- Private Equity
- Education Technology
- Financial Services
Geography
- United States – All involved entities, including KKR, Dragoneer, and Instruction Holdings, are based in the United States, and the acquisition transaction has taken place within this country.
Industry
- Private Equity – This involves KKR and Dragoneer, both of which are private equity firms engaged in investment and asset management.
- Education Technology – Instruction Holdings operates in the educational sector with a focus on cloud-based learning systems.
- Financial Services – The article involves debt financing facilitated by a consortium of banks, highlighting the financial structuring aspect.
Financials
- $4.8 billion – Total transaction value for the acquisition of Instruction Holdings.
- $23.6 per share – The price per share at which Instruction Holdings was acquired.
- $2.05 billion – Debt financing amount provided by a consortium managed by Morgan Stanley.
- $1.685 billion – First tranche loan amount of the financed acquisition.
- $365 million – Second tranche loan amount of the financed acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| KKR & Co. | Acquirer | Company | An American investment company specializing in alternative asset management and insurance services. |
| Dragoneer Investment Group | Acquirer | Company | An American investment firm with a significant portfolio, specializing in high-growth companies. |
| Instruction Holdings, Inc. | Target Company | Company | An educational technology company providing cloud-based learning platforms. |
| Morgan Stanley & Co. LLC | Financial Advisor | Company | Provided debt financing and consultancy for the acquisition. |
| UBS Investment Bank | Consultant | Company | Advised KKR on the acquisition. |
| J.P. Morgan Securities LLC | Adviser to Instruction Holdings | Company | Provided financial advisory services to Instruction Holdings during the acquisition. |
| Kirkland & Ellis LLP | Adviser to Instruction Holdings | Company | Provided legal advisory services to Instruction Holdings during the acquisition. |