Key Takeaways
- • Blackstone private equity funds have entered a definitive agreement to make a significant equity investment in Renaissance, a global pre-K–12 educational technology company, alongside existing investors Francisco Partners and TPG's The Rise Fund.
- • Francisco Partners acquired Renaissance in 2018 and will remain a major shareholder following the transaction.
- • The investment is intended to accelerate organic growth and innovation and to fund Renaissance's targeted acquisition strategy, following its 2021 acquisitions of Lalilo and Nearpod.
- • Renaissance serves more than 40% of US schools and more than 16 million students worldwide, according to the company.
- • The deal continues Blackstone's thematic focus on education technology, following its investments in Ellucian and Articulate.
Summary
Renaissance, a global leader in pre-K–12 educational technology, announced on November 9, 2021 that private equity funds managed by Blackstone (NYSE: BX) have entered a definitive agreement to make a significant equity investment in the company. The investment is made alongside existing investors Francisco Partners and TPG's The Rise Fund. Blackstone's investment will be made through its flagship private equity vehicle. The press release did not disclose the investment amount or valuation.
Francisco Partners acquired Renaissance in 2018 and will remain a major shareholder. Founded in 1986, Renaissance combines assessment expertise with personalized instruction and analytics tools for teachers and administrators. According to the company, it serves more than 40% of US schools and more than 16 million students worldwide. Its product portfolio includes Star Assessments, myON, Accelerated Reader, Freckle, Schoolzilla, Lalilo and Nearpod.
According to the announcement, the capital will help Renaissance accelerate organic growth and innovation across its product suite and continue its targeted acquisition strategy following its recent acquisitions of Lalilo, a foundational literacy program, and Nearpod, a teacher-facilitated instructional delivery platform.
Chris Bauleke, CEO of Renaissance, said the company has "even more opportunity to further our mission to accelerate learning for all worldwide" with Blackstone and Francisco Partners. Eli Nagler, Senior Managing Director at Blackstone, praised Bauleke and the team for building a "next generation technology platform." Jason Brein and Alan Ni of Francisco Partners described Renaissance as a leading K-12 edtech software platform.
The transaction reflects Blackstone's focus on education technology, following its private equity investment in Ellucian, a software provider to universities, and its Blackstone Growth investment in Articulate, a SaaS training platform. Goldman Sachs & Co. LLC served as lead financial advisor to Renaissance, with Macquarie Capital as financial advisor and Kirkland & Ellis as legal advisor. SVB Technology Investment Banking advised Blackstone, and Simpson Thacher & Bartlett LLP served as its legal advisor. Blackstone reported $731 billion in assets under management at the time of the announcement.
Francisco Partners acquired Renaissance in 2018 and will remain a major shareholder. Founded in 1986, Renaissance combines assessment expertise with personalized instruction and analytics tools for teachers and administrators. According to the company, it serves more than 40% of US schools and more than 16 million students worldwide. Its product portfolio includes Star Assessments, myON, Accelerated Reader, Freckle, Schoolzilla, Lalilo and Nearpod.
According to the announcement, the capital will help Renaissance accelerate organic growth and innovation across its product suite and continue its targeted acquisition strategy following its recent acquisitions of Lalilo, a foundational literacy program, and Nearpod, a teacher-facilitated instructional delivery platform.
Chris Bauleke, CEO of Renaissance, said the company has "even more opportunity to further our mission to accelerate learning for all worldwide" with Blackstone and Francisco Partners. Eli Nagler, Senior Managing Director at Blackstone, praised Bauleke and the team for building a "next generation technology platform." Jason Brein and Alan Ni of Francisco Partners described Renaissance as a leading K-12 edtech software platform.
The transaction reflects Blackstone's focus on education technology, following its private equity investment in Ellucian, a software provider to universities, and its Blackstone Growth investment in Articulate, a SaaS training platform. Goldman Sachs & Co. LLC served as lead financial advisor to Renaissance, with Macquarie Capital as financial advisor and Kirkland & Ellis as legal advisor. SVB Technology Investment Banking advised Blackstone, and Simpson Thacher & Bartlett LLP served as its legal advisor. Blackstone reported $731 billion in assets under management at the time of the announcement.
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