Note from Editors:
Blackboard, an education software, is selling the company for $3 billion. Providence #equity Partners LLC hired Deutsche Bank AG and Bank of America to run an auction for the company.
by Liana B. Baker, Greg Roumeliotis and Mike Stone
(Reuters) – Blackboard, a U.S. software company that provides learning tools for high school and university classrooms, is exploring a sale that it hopes could value it at as much as $3 billion, including debt, according to people familiar with the matter.
Blackboard’s majority owner, private equity firm Providence Equity Partners LLC, has hired Deutsche Bank AG and Bank of America to run an auction for the company, the people said this week.
Blackboard has annual earnings before #interest, tax, depreciation and amortization of around $200 million, some of the people added.
Two of the people said that Blackboard could fetch a #valuation between 14 times to 17 times EBITDA, up to $3.4 billion, based on current multiples of subscription-based software companies.
The sources asked not to be identified because the sale process is confidential. Providence Equity, Blackboard, Deutsche Bank and Bank of America declined to comment.
Based in Washington D.C., Blackboard provides custom software to help students collaborate on assignments and communicate with teachers. It serves 19,000 clients in 100 countries including 1,900 international institutions, with 80 percent of the top academic institutions using its software, according to its website.
The majority of Blackboard’s #business is from higher education clients but it also generates revenue from K-12 schools and from government and corporate clients. The company has also branched into “student pathway” services that help students manage financial aid, video conferencing and other areas.
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Curated from Education software company Blackboard is looking to sell for $3 billion
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