Thoma Bravo Finally Acquires Instructure and Appoints an Interim, CEO J. Charles Goodman
IBL News | New York
Private equity firm Thoma Bravo will finally own Instructure (NYSE: INST).
The Salt Lake City-based Edtech company–creator of the Canvas LMS–will become a privately held firm.
The Chicago-based capital firm announced yesterday that it has purchased all of the outstanding shares of Instructure after a cash tender offer, which expired last Friday.
Thoma Bravo made an offer of $49 per share in cash in mid-February, just before the stock market began to take a sharp decline – with a 25% loss in the past month – due to the coronavirus pandemic.
“As of expiration, 24,828,913 shares had been validly tendered and not withdrawn from the tender offer, representing approximately 64.4 percent of the aggregate voting power of Instructure’s outstanding shares of common stock,” the company said in a public statement.
The global Covid-19 crisis, along with the market collapse and the rise of online companies, finally put an end to weeks of ongoing deep discrepancies and disputes among shareholders and activist investors.
Thoma Bravo will now complete a second-step merger in which any remaining shares of Instructure common stock will be converted into the right to receive an amount in cash. The transaction will be completed on March 24, 2020.
The big next step for Instructure after closing is to appoint a new CEO in place.
Now the company has an interim CEO, appointed by Thoma Bravo, sources told IBL News. His name is J. Charles Goodman, Operating Partner at Thoma Bravo, and former CEO at Frontline Education, another Thoma Bravo company. [In the picture below]
Instructure doesn’t anticipate widescale layoffs as it happened earlier this year, although the new owner does plan for some cuts. “There will always be adjustments and reorgs that might make someone’s role redundant,” sources say.