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PowerSchool (PWSC) to Acquire SchoolMessenger for $300M
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PowerSchool Holdings, Inc. (PWSC - Free Report) announced the acquisition of SchoolMessenger, a leading provider of K-12 communication tools in North America. This transaction is valued at $300 million and the company expects to fund with cash on hand and existing credit facilities. The deal is expected to be completed in the third quarter of 2023.
Shares of the company rose 2% to $19.99 during the trading session on Jul 11.
The acquisition strengthens PowerSchool's ability to deliver an all-encompassing solution for educational institutions. The addition of SchoolMessenger's communication platform to PowerSchool’s Student Information Cloud will enhance family engagement and support student success. With centralized access to reliable mass communication, emergency messaging and two-way communication capabilities, schools and districts can provide timely updates to parents on various topics through the PowerSchool Student Information Cloud.
Focus on Expansion
The company continues to focus on enhancing and expanding its product offering through acquisition. Although the company did not make any acquisitions during the three months ended Mar 31, 2023, it completed three acquisitions in fiscal 2022.
On Feb 1, 2022, the company acquired Kinvolved, Inc., a leading provider of K-12 communications, attendance and engagement solutions software. On May 2, 2022, the company acquired Chalk.com Education ULC, an integrated curriculum planning and analytics platform for K-12 schools. On Jun 1, 2022, the company completed the acquisition of Headed2, LLC, a career path planning platform that delivers state-level support for college, career, military and life readiness to students of all ages by providing a more complete approach to researching and preparing for future success.
Image Source: Zacks Investment Research
In the past year, shares of PowerSchool have increased 53.8% compared with the industry’s 23.4% rise. The company has been benefiting from solid operational execution, continued product innovation and go-to-market success, given its advanced platform of software and data solutions. During first-quarter 2023, strong net retention and a record quarter of new logo bookings drove double digit annualized recurring revenue or ARR growth (up 10% year over year).
Zacks Rank & Other Key Picks
PowerSchool currently carries a Zacks Rank #2 (Buy).
Trip.com Group Limited (TCOM - Free Report) flaunts a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 147.9%, on average. Shares of TCOM have increased 39.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Trip.com Group’s 2023 sales and EPS suggest an increase of 101.6% and 531%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) carries a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 65.8%, on average. Shares of OSW have increased 72.2% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 33.9% and 89.3%, respectively, from the year-ago period’s levels.
Bluegreen Vacations Holding Corporation carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 24.7%, on average. Shares of BVH have surged 58.7% in the past year.
The Zacks Consensus Estimate for BVH’s 2023 sales and EPS indicates a rise of 3.6% and 17.6%, respectively, from the year-ago period’s levels.
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PowerSchool (PWSC) to Acquire SchoolMessenger for $300M
PowerSchool Holdings, Inc. (PWSC - Free Report) announced the acquisition of SchoolMessenger, a leading provider of K-12 communication tools in North America. This transaction is valued at $300 million and the company expects to fund with cash on hand and existing credit facilities. The deal is expected to be completed in the third quarter of 2023.
Shares of the company rose 2% to $19.99 during the trading session on Jul 11.
The acquisition strengthens PowerSchool's ability to deliver an all-encompassing solution for educational institutions. The addition of SchoolMessenger's communication platform to PowerSchool’s Student Information Cloud will enhance family engagement and support student success. With centralized access to reliable mass communication, emergency messaging and two-way communication capabilities, schools and districts can provide timely updates to parents on various topics through the PowerSchool Student Information Cloud.
Focus on Expansion
The company continues to focus on enhancing and expanding its product offering through acquisition. Although the company did not make any acquisitions during the three months ended Mar 31, 2023, it completed three acquisitions in fiscal 2022.
On Feb 1, 2022, the company acquired Kinvolved, Inc., a leading provider of K-12 communications, attendance and engagement solutions software. On May 2, 2022, the company acquired Chalk.com Education ULC, an integrated curriculum planning and analytics platform for K-12 schools. On Jun 1, 2022, the company completed the acquisition of Headed2, LLC, a career path planning platform that delivers state-level support for college, career, military and life readiness to students of all ages by providing a more complete approach to researching and preparing for future success.
Image Source: Zacks Investment Research
In the past year, shares of PowerSchool have increased 53.8% compared with the industry’s 23.4% rise. The company has been benefiting from solid operational execution, continued product innovation and go-to-market success, given its advanced platform of software and data solutions. During first-quarter 2023, strong net retention and a record quarter of new logo bookings drove double digit annualized recurring revenue or ARR growth (up 10% year over year).
Zacks Rank & Other Key Picks
PowerSchool currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Consumer Discretionary sector are:
Trip.com Group Limited (TCOM - Free Report) flaunts a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 147.9%, on average. Shares of TCOM have increased 39.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Trip.com Group’s 2023 sales and EPS suggest an increase of 101.6% and 531%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) carries a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 65.8%, on average. Shares of OSW have increased 72.2% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 33.9% and 89.3%, respectively, from the year-ago period’s levels.
Bluegreen Vacations Holding Corporation carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 24.7%, on average. Shares of BVH have surged 58.7% in the past year.
The Zacks Consensus Estimate for BVH’s 2023 sales and EPS indicates a rise of 3.6% and 17.6%, respectively, from the year-ago period’s levels.