A Large Investor Opposes Instructure’s Plan to Sell for $2 Billion

IBL News | New York

Instructure’s plan to sell to private equity firm, Thoma Bravo, for $2 billion faced its first problems yesterday.

New York-based Rivulet Capital, a large investor which owns 5.23% of Instructure, called the deal “too cheap” and “too hurried”, announcing that it will resist the transaction and vote against.

On a regulatory filing, Rivulet Capital cited the circumstances surrounding the transaction, including the “rushed, 3-week strategic alternatives’ process over the Thanksgiving holiday.”

The shareholder noted that the 35-day go-shop period stretches across the Christmas and New Year’s holidays.

Rivulet is also concerned about Instructure’s governance and potential conflicts of interest.

Two weeks ago, Kevin Oram, Praesidium’s Co-Founder and Managing Partner, said that selling Bridge –Instructure’s unprofitable employee development platform– would unlock the value of Canvas, which he estimated to be worth $2.5 billion.

Key ResourceSEC 8K filing made by Instructure