PowerSchool (PWSC) to Acquire SchoolMessenger for $300M
PowerSchool Holdings, Inc. PWSC announced the acquisition of SchoolMessenger, a leading provider of K-12 communication tools in North America. This transaction is valued at $300 million and the company expects to fund with cash on hand and existing credit facilities. The deal is expected to be completed in the third quarter of 2023.
Shares of the company rose 2% to $19.99 during the trading session on Jul 11.
The acquisition strengthens PowerSchool's ability to deliver an all-encompassing solution for educational institutions. The addition of SchoolMessenger's communication platform to PowerSchool’s Student Information Cloud will enhance family engagement and support student success. With centralized access to reliable mass communication, emergency messaging and two-way communication capabilities, schools and districts can provide timely updates to parents on various topics through the PowerSchool Student Information Cloud.
Focus on Expansion
The company continues to focus on enhancing and expanding its product offering through acquisition. Although the company did not make any acquisitions during the three months ended Mar 31, 2023, it completed three acquisitions in fiscal 2022.
On Feb 1, 2022, the company acquired Kinvolved, Inc., a leading provider of K-12 communications, attendance and engagement solutions software. On May 2, 2022, the company acquired Chalk.com Education ULC, an integrated curriculum planning and analytics platform for K-12 schools. On Jun 1, 2022, the company completed the acquisition of Headed2, LLC, a career path planning platform that delivers state-level support for college, career, military and life readiness to students of all ages by providing a more complete approach to researching and preparing for future success.
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In the past year, shares of PowerSchool have increased 53.8% compared with the industry’s 23.4% rise. The company has been benefiting from solid operational execution, continued product innovation and go-to-market success, given its advanced platform of software and data solutions. During first-quarter 2023, strong net retention and a record quarter of new logo bookings drove double digit annualized recurring revenue or ARR growth (up 10% year over year).
Zacks Rank & Other Key Picks
PowerSchool currently carries a Zacks Rank #2 (Buy).
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PowerSchool Holdings, Inc. (PWSC) : Free Stock Analysis Report
