PowerSchool (PWSC) Expands Offerings With Allovue Acquisition
PowerSchool Holdings, Inc. PWSC announced the acquisition of a U.S.-based K-12 financial planning, budgeting and analytics software provider — Allovue.
The company shared optimistic views on this strategic transaction as it believes this to offer it with improved capabilities for managing district finances with tools, which are intuitive and easy to use.
Following the announcement, shares of PWSC have gained 1.1% during the trading session and 2.4% in the after-hours trading session on Jan 22.
Takeaways from the Acquisition
The strategic acquisition of Allovue will expand PowerSchool’s financial management, analytics and workflow capabilities, when incorporated with its existing systems. This top-tier integration will offer schools, districts and state education leaders with the most comprehensive portfolio of K-12 data and analytics tools aiding in allocating, and managing budgets and resources.
The aspects benefiting from this new integrated K-12 data and analytics tools include real-time access to all budgeting information, budget collaboration, equitable funding formulas, along with analytics and dashboards, to track as well as manage spending. This expected improvement in allocating, budgeting and managing K-12 finances will help target customers to gauge the impact of funding decisions on measurable student outcomes.
Strategic Buyout Initiatives Boost Growth
PowerSchool diversifies its product portfolio and expands the offerings primarily through strategic acquisitions. Through its timely add-on acquisitions, the company is fostering its abilities to cater to the urgent needs of its customers, mainly district-wise.
On Oct 3, 2023, the company acquired SchoolMessenger, a K-12 communication solutions provider in North America. The primary aim behind this strategic acquisition was to integrate direct communication capabilities of the acquired company into its new MyPowerSchool single pane of glass portal for parents, students and teachers, ensuring personalized education for every student.
On Aug 9, 2023, PWSC completed the acquisition of Jarulss Software Solutions Private Limited for $10 million. The main goal of this buyout was to enhance and expand its product offering.
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Shares of this cloud-based software provider for K-12 education in North America gained 3.5% in the past month against the Zacks Schools industry’s 0.9% decline. The accretive acquisition initiatives are aiding the company’s prospects. PWSC intends to focus on potential buyout opportunities that complements with its product offerings, fostering its growth.
Zacks Rank & Key Picks
PowerSchool currently carries a Zacks Rank #3 (Hold).
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