K-12 EdTech Provider PowerSchool Files SEC Paperwork for Initial Public Offering
Hot on the heels of Coursera’s successful IPO last week, which saw the company jump to a $5.9 billion market cap, and confirming February rumors, K-12 EdTech solutions provider PowerSchool filed an S-1 prospectus late yesterday with the SEC for its IPO. Like Coursera, PowerSchool is filing as an “emerging growth company”, which reduces the amount of disclosure required to investors. From the S-1:
We now have a much better view of PowerSchool’s financial position.
This deal is a little complex, based not only on the emerging growth company status but also the resultant usage of LLC partnership ownership. PowerSchool’s ownership currently is through two private equity firms – Vista Equity Partners and Onex Partners. Subsequent to the public offering, PowerSchool will own shares in Severin Holdings (with related entities Severin Topco and Holdings, LLC).
There’s more to unpack here – good luck figuring out that ownership structure. In the meantime, I’m copying a portion of this February post that had been triggered by Bloomberg’s leak of the potential IPO.
Previous Coverage of PowerSchool and Schoology
Readers of this blog will remember that PowerSchool acquired LMS provider Schoology in late 2019. The K-12 space favors consolidation much more than Higher Ed, and PowerSchool is the largest player. For background reading:
Schoology NEXT 2019: Increased focus on K-12 LMS Market, July 2019 – Jeanette covered the users conference and helped explain Schoology’s product direction and renewed focus on K-12 market;
About the PowerSchool Acquisition of Schoology, October 2019 – I covered the acquisition news, addressing how the deal might make sense for PowerSchool and how it might impact the K-12 LMS market;
PowerSchool Acquires Schoology: The K-12 Landscape Is Changing, October 2019 – Our partners at LISTedTECH shared data on both the K-12 SIS and LMS markets, (in combination with this November 2019 post) showing the overlap with this graphic:
LMS Market Acceleration: An initial view in North America, September 2020 – I looked at 2020 data to see how the pandemic is driving accelerated K-12 LMS market activity, with this view of New Implementations (graphic updated end of 2020 from the one in the original post, showing the rapid acceleration of Schoology adoption):
PowerSchool: The Path To Dominate The K-12 Market, January 2021 – LISTedTECH shared data and summary table to help describe PowerSchool’s overall consolidation-through-acquisition strategy.
Coming back to Bloomberg’s coverage of the planned IPO, we can see the financial expectations’ growth due to this consolidation and rapid adoption in K-12 during the pandemic.
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