Instructure to add $685 million to credit facility for acquisition

By William Gullotti

Buffalo, N.Y., Oct. 30 – Instructure Holdings, Inc. plans to add $685 million in additional borrowings to an existing credit facility and use cash on hand to finance the acquisition of Parchment, according to an 8-K filing with the Securities and Exchange Commission.

According to the appended press release, the transaction is valued at approximately $835 million. Including a tax benefit resulting from the transaction, the net purchase price is about $795 million, or approximately 16 times Parchment's expected 2024 adjusted EBITDA.

The transaction is expected to close in the first quarter of 2024, subject to regulatory approval and customary closing conditions.

Parchment is expected to contribute approximately $115 million of revenue in 2024.

J.P. Morgan Securities LLC acted as financial adviser and Kirkland & Ellis LLP as legal adviser to Instructure. Macquarie Capital acted as lead financial adviser, Robert W. Baird & Co. also acted as financial adviser and Latham & Watkins LLP acted as legal adviser to Parchment.

Instructure is a Salt Lake City-based educational technology company. Parchment is an academic credential management platform.

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