Instructure to acquire Parchment in a $835M transaction

Instructure Holdings announced it has signed a definitive agreement to acquire Parchment. Parchment has more than 15,000 customers and has exchanged more than 165M credentials over two decades. With this transaction, Instructure will add the world’s largest academic credentialing platform and network to the Instructure Learning Platform. This acquisition is expected to significantly expand Instructure’s existing customer base and unlock exciting new growth opportunities. The transaction is valued at approximately $835M Including a tax benefit resulting from the transaction, the net purchase price is approximately $795M, or approximately 16 times Parchment’s expected 2024 Adjusted EBITDA inclusive of anticipated run-rate cost synergies. Parchment is expected to contribute approximately $115M of revenue in 2024. Instructure plans to finance the transaction with cash on hand and incremental debt under its existing credit facility. The transaction is expected to close in the Q1 of 2024, subject to regulatory approval and customary closing conditions. J.P. Morgan Securities acted as financial advisor and Kirkland & Ellis as legal advisor to Instructure. Macquarie Capital acted as lead financial advisor, Robert W. Baird & Co. also acted as financial advisor and Latham & Watkins acted as legal advisor to Parchment.