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 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.