Vista Equity to Buy Education-software maker Pluralsight for $3.5 billion

Pluralsight agrees to $3.5 billion sale to private equity firm Vista Equity Partners.



PUBLISHED BY
Christy Gren



TAGS:


5 months ago




America’s leading private equity firm Vista Equity announced on Sunday it agreed to buy education-software maker Pluralsight Inc. in an all-cash deal. The deal values Pluralsight at $20.26 per share or $3.5 billion including debt, the companies wrote in a statement confirming Vista Equity’s acquisition of Pluralsight.

Farmington, Utah-based Pluralsight is a cloud based online education platform for software developers that sells to individuals and businesses. It sells software to companies through its Skill and Flow product lines, which help offer courses and analytics services.

In March, Vista’s competition Thoma Bravo LP acquired education-software company Instructure Inc. private in a deal worth $2 billion.

“We have seen firsthand that the demand for skilled software engineers continues to outstrip supply, and we expect this trend to persist as we move into a hybrid online-offline world across all industries and interactions, with business leaders recognizing that technological innovation is critical to business success,” Monti Saroya, co-head of Vista’s flagship Fund and senior managing director, said in a statement.

Vista Equity buys acquired Pluralsight

Pluralsight’s stock is up around 10% this year, dawdling below the benchmark S&P 500 Index.

Pluralsight’s stock is up around 10% this year, dawdling below the benchmark S&P 500 Index.

“We are pleased to have reached this agreement with Vista, which delivers significant immediate cash value to our shareholders, and positions Pluralsight to continue meeting and exceeding the expectations of our customers,” said Gary Crittenden, Pluralsight’s lead independent director.

Vista Equity, led by chairman and CEO Robert Smith, is a pioneer in software investing and manages over $73 billion in assets across multiple strategies. The Austin, Texas-based private equity firm specializes in investing in enterprise software, data and technology companies.

In August, it came to light that federal authorities had spent four years examining Smith for potential tax crimes. It was reported that federal authorities were looking into whether Smith failed to pay about $200 million in assets that moved through offshores structures. In October, the Justice Department slapped smith with a penalty of $139 million to end the four-year investigation into the alleged tax law violations.

Brian Sheth, the company’s co-founder, president and lead deal-maker, left the firm in wake of the Robert Smith tax scandal.

On November 30, Vista Equity announced it is buying a majority stake in customer-relations software firm Gainsight Inc. in a deal worth $1.1 billion. It also announced a majority investment in Pipedrive, a well-known maker of customer-relations-management software, in a deal that values the company at $1.5 billion.

Avatar
Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Recent Posts

Hyundai commits $7.4 billion in US investment by 2025

Hyundai commits $7.4 billion in US investment by 2025

South Korea’s Hyundai Motor Co., announced on Thursday it will soon start manufacturing electric vehicles in the United States. The automaker plans to produce EVs, upgrade produc
15 hours ago
US inflation report of 4.2 percent raises concerns

US inflation report of 4.2 percent raises concerns

The US reported the highest inflation recorded in the last dozen years at 4.2 percent in April, riding on government stimulus packages, improved energy prices, better spending and
18 hours ago
Aon – Willis asset disposal aims to ease approval of $30 billion merger

Aon – Willis asset disposal aims to ease approval of $30 billion merger

Aon Plc and Willis Towers Watson have agreed to sell $3.6 billion worth of assets to rival Arthur J. Gallagher & Co. in a bid to appease European competition regulators over th
2 days ago
Roblox declares Q1, reports $387 million revenue as bookings increase

Roblox declares Q1, reports $387 million revenue as bookings increase

Roblox, the hugely popular online gaming platform, reported its first-quarter earnings after becoming a listed company. Its revenue more than doubled as the videogame company benef
3 days ago
Weak US job report results in volatile market

Weak US job report results in volatile market

A weak job report resulted in a record close on Friday for the US stocks. The US labor department’s monthly non-farm payrolls report revealed employers hired 266,000 new workers
4 days ago
Star and Blackstone launch bids to buyout Australia’s Crown Resorts

Star and Blackstone launch bids to buyout Australia’s Crown Resorts

A bidding war has broken out between Australian casino company Star Entertainment Group and US private equity investor Blackstone Group over Crown Resorts, Australia’s bigges
4 days ago