Bloomberg — General Atlantic LLC and Dragoneer Investment Group proposed to take Arco Platform Ltd. (ARCE) private as shares of the Brazilian tech-education company trade near all-time lows. The stock jumped as much as 25%.
The firms offered to acquire all of Arco’s outstanding Class A common shares that are not held by them or founders Ari de Sa Neto and Oto de Sa Cavalcante for $11 apiece in cash, a 22% premium to Wednesday’s closing price. Ari and his father Oto support the transaction, according to a filing.
General Atlantic first invested in Arco in 2014 and boosted its stake last year through a private investment in public equity, or PIPE, with Dragoneer also participating in the deal. The move took place as depressed valuations in public markets lured private equity firms.
![Dragoneer, General Atlantic propose to take Arco private as shares plunge Dragoneer, General Atlantic propose to take Arco private as shares plunge](https://www.bloomberglinea.com/resizer/v2/EAEAW5LBWZGAVAQAYWRZB3ZTAQ.png?auth=7d0bae0d62fac80f38ba0c9bf3a74dc36f72c6308a5550180b5f346b75ff5826&width=1000&height=562&quality=80&smart=true)
Arco started as a single school in Brazil’s impoverished northeast region and expanded to become a tech-education unicorn.
After going public in the US in 2018 and enjoying a rally that minted the founding family as billionaires, Arco was hit by the correction in the technology industry over the past year. The stock has plunged 47% this year and hit a record low last month. The market cap stands at $637 million.
Arco, which is based in Sao Paulo, reports third quarter earnings after market on Thursday. Shares were up 23% at 9:51 a.m. New York time after gaining as much as 25%.
Read more on Bloomberg.com