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Providence Equity Partners Acquire BlackBoard For $1.64 Billion

Educational software maker BlackBoard has agreed on the acquisition by a group of investors led by Providence Equity Partners for $1.64 billion.

The buyout will make BlackBoard a private company again. The decision was reached after a four month review of the company’s future strategies.

Under the acquisition deal, the company’s current management structure will remain the same while shareholders will receive $45 per share, 21 percent more than the company’s share price.

BlackBoard started receiving acquisition offers back in March and had to appoint a committee to decide the best future action. The company announced in April that it was officially looking into the acquisition deals and also hired Barclays as its financial advisor, The Washington Post (opens in new tab)reveals.

“Through our conversations, Providence has expressed interest in our business model,” said Michael Chasen, the company’s co-founder and chief executive officer.

“We are very much not only going to continue to develop and bring new products to market in those areas, but with Providence I think we can accelerate some of that.” he added.

BlackBoard was started back in 1997 by Michael Chasen and Matthew Pittinsky and raked in $16.6 million in profit last year.

Ravi Mandalia

Ravi Mandalla was ITProPortal's Sub Editor (and a contributing writer) for two years from 2011. Based in Ahmedabad, India, Ravi is now the owner and founder of Parity Media Pvt. Ltd., a news and media company, which specializes in online publishing, technology news and analysis, reviews, web site traffic growth, web site UI. Ravi lists his specialist subjects as: Enterprise, IT, Technology, Gadgets, Business, High Net Worth Individuals, Online Publishing, Advertising, Marketing, Social Media, News, Reviews, Audio, Video, and Multi-Media. He has also previously worked as Dy. Manager - IT Security at (n)Code Solutions.