Bain Capital Set to Buy PowerSchool for $6 Billion

Bain Capital is in discussions to purchase education-software provider PowerSchool ( PWSC ), a company based in Folsom, California. The $6 billion deal is still weeks away from being finalized, and it is expected to arrive at a time when private equity-led buyouts appear to be undergoing a resurgence. PowerSchool ( PWSC ), which makes cloud-based software for K-12 education, has a market capitalization of more than $4 billion. The report also noted that private equity firms have been considering a buyout of Peloton, with at least one firm having talked with Peloton about going private.

Private equity companies have begun stepping up efforts to compete with banks on low-interest loans, with Apollo Global increasing its long-term forecasts for its lending business. Apollo Co-president Jim Zelter said that economic activity in the U.S., driven by increased public and private spending on infrastructure projects, was leading to greater demand for loans. The Financial Times reported that the largest buyout firms on the planet have made low-risk lending an essential part of their growth plans, with investment-grade loans becoming especially attractive for companies that have acquired large insurers, driving continued demand for high-earning investment assets.

Technical Outlook
Powerschool stock ( PWSC ) is up 15% forming an upside-gapping effect due to the buyout news from Bain Capital. The stock has a Relative Strength Index (RSI) of 56.64 which is prime for further surge.