Ellucian Close to $3.5 Billion Sale to Private Equity Firm

BIGGER THAN LYNDA: The education technology industry is on the cusp of another billion-dollar deal. Reuters reports that TPG Capital, a buyout firm, is “close to [a] $3.5 billion deal to buy Ellucian.” Based in Fairfax, VA, the company was formed in 2012 as a result of a merger between Datatel and Sungard, and is currently owned by private equity firms Hellman & Friedman and JMI Equity. Ellucian provides a vast array of software and services, from administration and admissions to content management and security, to over 2,400 higher-ed institutions across 40 countries.

Private equity firms have been shelling out big bucks for education companies in recent years. If completed, the deal will surpass Hellman & Friedman’s $1.1 billion purchase of Renaissance Learning, Charterhouse Capital Partner’s $2 billion acquisition of Skillsoft, and most recently LinkedIn’s $1.5 billion acquisition of Lynda.com.

UPDATE (8/14/15): Ellucian has confirmed that a “definitive agreement” has been reached with TPG Capital and Leonard Green Partners. The transaction amount was not disclosed.

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