Friday, July 1, 2011

Providence Equity buys ed tech firm Blackboard for $1.64B

By James M. Connolly

An investor group led by Rhode Island-based Providence Equity Partners has closed a deal to buy Blackboard Inc., a Washington, D.C., company that develops educational software for institutions ranging from K-12 to colleges, according to a press release from Blackboard (Nasdaq: BBBB).

The all-cash transaction is valued at $1.64 billion, not including assumption of about $130 million in net debt. The investor group will pay $45 in cash for each share of Blackboard common stock. There had been news reports during the past week that Providence Equity was the leading bidder for Blackboard, whose board had decided in March to explore “strategic alternatives.” Blackboard stock was selling at $43.39 per share at the close of trading Thursday.

Michael Chasen, Blackboard’s president and CEO said in the press release, “In Providence, we will have a partner who brings a deep understanding of the international education marketplace and shares our vision of providing educators with exceptional technology solutions and services to meet their evolving needs over the long-term. We look forward to welcoming Providence to the Blackboard team.” 
 
Blackboard’s offerings include products such as collaboration and analysis tools for educational institutions.

Providence Equity Partners is a global private equity firm specializing in equity investments in media, communications, information services and education companies.