Ellucian TPG Capital EDBRIEF 08 2015 EDUKWEST

EDBRIEF: Ellucian acquired by TPG Capital and Leonard Green Partners

Ellucian announced that private equity firms TPG Capital and Leonard Green Partners acquired a majority stake in the higher education SaaS provider from its current owners Hellman & Friedman LLC and JMI Equity.

Terms of the deal have not been disclosed, but sources told Reuters that the deal could value Ellucian around $3.5 billion. The deal is expected to close by the end of this year.

Ellucian is based on the assets of Datatel and SunGuard. H&P and JMI acquired Datatel in 2009 for $570 million. In 2012 Datatel acquired SunGuard’s higher education assets for $1.8 billion, renaming the company to Ellucian.

Ellucian currently serves 2.400 institutions in 40 countries. Last month the company announced that it will create 50 new jobs in Dublin.

Both TPG and H&P have been active in the education technology space in the past months. TPG led lynda.com’s $186 million Series B in January and sold Wikispaces to TSL Education last year. H&P acquired Renaissance Learning for $1.1 billion in March 2014.

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Kay Alexander is the co-founder and creative director of EDUKWEST. You can follow him on Twitter, Facebook or Google+