TPG Capital and Leonard Green & Partners agreed to buy education software provider Ellucian Co. in a $3.5 billion leveraged buyout, a person with knowledge of the terms of the transaction said.
The private equity firms will acquire Fairfax, Virginia- based Ellucian from buyout firms Hellman & Friedman and JMI Equity, according to a statement Friday. The companies expect the transaction to be completed before year-end.
Representatives for the firms declined to comment on financial terms of the deal.
TPG, based in Fort Worth, Texas, and Los Angeles-based Leonard Green partner for deals often. The firms in June bought gym operator Life Time Fitness Inc. for more than $4 billion, after together buying clothing retailer J. Crew Group Inc., semiconductor-parts maker MEMC Electronic Materials, Petco Animal Supplies Inc. and thrift-stores chain Savers.
Ellucian supplies software to more than 2,400 higher- education institutions in 40 countries. The company, which Hellman & Friedman and JMI bought in 2009 before acquiring more assets for it, provides software and cloud services to handle student information systems, finance, human resources and other analytics.
TPG, which manages $75 billion, and Leonard Green were advised by Morgan Stanley, Bank of America Corp., BMO Capital Markets and Barclays Plc. Credit Suisse Group AG and Goldman Sachs Group Inc. gave advice to Ellucian. Simpson Thacher & Bartlett, Ropes & Gray and Latham & Watkins gave legal advice.