Key Pointers:
- Arco Platform partners with General Atlantic and Dragoneer Investment Group to go private, with the firms acquiring outstanding Class A common shares.
- The acquisition’s cash price of $14 per share offers a remarkable 55% premium over the November 30, 2022, closing price, showcasing investor confidence.
- The merger’s finalization is expected in Q4 2023 or Q1 2024, pending fulfillment of closing conditions outlined by Arco.
In a recent development, Brazilian ed-tech firm Arco Platform has announced its strategic decision to become a privately-owned company. The company has signed a significant agreement with private equity giants General Atlantic L.P. and Dragoneer Investment Group, in a deal estimated at approximately $1.5 billion in total enterprise value. Under this agreement, the investment entities linked with General Atlantic and Dragoneer Investment will acquire all the outstanding Class A common shares of Arco that they do not currently hold or the company’s founders.
What sets this deal apart is the substantial premium attached to it. The acquisition will occur at a cash price of $14 per share, providing investors with a remarkable 55% premium over the closing price observed on November 30, 2022, when the potential acquirers were initially disclosed. The finalization of this merger is contingent upon various closing conditions, with an estimated timeline for completion set for either the last quarter of 2023 or the first quarter of 2024. As Arco Platform ventures into this new phase, the partnership with these influential private equity firms is anticipated to usher in fresh opportunities and growth avenues.