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Thoma Bravo’s Instructure buyout stumbles after board rejects improved offer from firm

Thoma Bravo’s Instructure buyout stumbles after board rejects improved offer from firm


Thoma Bravo’s attempted buyout of educational software business Instructure has stumbled after the company rejected an improved offer from the buyout house – two months after initially green-lighting a $2bn offer.

The private equity firm looked set for a deal in December after the Instructure board of directors unanimously approved the $47.60 per share offer for the business.

An upswell of shareholder resistance to the deal gave the board pause for thought, however, and now Thoma Bravo’s increased offer of $48.50 per share has been rejected and a shareholder vote postponed.

Instructure shares are currently trading at about $46 each, well below the $52 to $53 per share the company had reached in early December last year.

A statement from the company to the New York Stock Exchange said, “The Board expressed concern about whether the revised proposal provided stockholders with sufficient certainty of closing in light of the feedback concerning the merger that the board has received from over 20 stockholders since the execution of the merger agreement.”

Instructure provides learning management software for schools and businesses through its Canvas and Bridge platforms.

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