Reuters reports that Blackboard might be on the market with a $3 billion price tag attached to it. According to sources, majority owner Providence Equity Partners LLC, who took Blackboard private in 2011, hired Deutsche Bank and Bank of America to run an auction for the company.
Providence paid $1.64 billion four years ago and hopes for a valuation 14 to 17 times EBITDA (earnings before interest, tax, depreciation and amortization) which is currently around $200 million according to sources. The valuation would be based on comparable subscription-based SaaS companies.
Founded in 1998, Blackboard currently serves 19,000 clients in 100 countries, including 80 percent of the top academic institutions according to the company. In recent years Blackboard has come under pressure from startups like Instructure Canvas which managed to take away market share from Blackboard.
Launched in 2011 Instructure, which raised around $90 million in venture capital and aims for an IPO later this year, quickly grew to over 1.200 clients. Earlier this month Blackboard announced the launch of a redesigned LMS called New Learning Experience at its annual conference.
- The Reeducation of Blackboard, everyone’s Classroom Pariah | Wired
- Blackboard unveils totally redesigned learning platform | eCampus News
- Instructure Canvas – The next Dominant Education Platform? | EDUKWEST