Blackboard Seen Losing 50% Gain With Private Equity: Real M&A

Blackboard Inc. shareholders may lose out on a 50 percent gain as private equity buyers circle the maker of online educational software.

Providence Equity Partners is in the lead to acquire Blackboard, a person with knowledge of the situation said this week. Leveraged buyout firms have paid a median of 10.7 times earnings before interest, taxes, depreciation and amortization for software companies in the last three years, as other buyers spent 15.4 times, according to data compiled by Bloomberg. Based on Washington-based Blackboard’s estimated 2012 Ebitda, a private equity takeover may amount to $1.53 billion, or $43.78 a share instead of the $64.40 a non-financial buyer would pay.