{"id":14923,"date":"2020-02-18T09:46:13","date_gmt":"2020-02-18T14:46:13","guid":{"rendered":"https:\/\/news.elearninginside.com\/?p=14923"},"modified":"2020-02-18T09:52:28","modified_gmt":"2020-02-18T14:52:28","slug":"dan-goldsmith-will-step-down-as-instructure-ceo-while-thoma-bravo-revises-agreement-to-tender-offer-at-49-00-per-share","status":"publish","type":"post","link":"https:\/\/news.elearninginside.com\/dan-goldsmith-will-step-down-as-instructure-ceo-while-thoma-bravo-revises-agreement-to-tender-offer-at-49-00-per-share\/","title":{"rendered":"Instructure CEO to Step Down; Thoma Bravo Revises Agreement to Tender Offer at $49.00 Per Share"},"content":{"rendered":"<p>Instructure CEO Dan Goldsmith announced on February 18 that he plans to leave his role as chief executive of the company, along with his position on the board of directors. Goldsmith will remain in his post until March 6. In the meantime, senior Instructure leaders will form a joint office of the CEO as they begin a search to fill the role with the help of a hired firm.<\/p>\n<p>On the same day, Thoma Bravo revised their definitive agreement with Instructure. They will begin a tender offer at some point before February 25 to buy all outstanding Instructure stock at $49.00 a share. After the tender offer is completed, Instructure plans to merge with Thoma Bravo.<\/p>\n<p>Last week, the <a href=\"https:\/\/news.elearninginside.com\/instructure-agrees-to-2-billion-acquisition-by-private-equity-from-thoma-bravo\/\">proposed private equity buyout<\/a> of Instructure at $47.60 per share by Thoma Bravo <a href=\"https:\/\/news.elearninginside.com\/instructure-investors-block-thoma-bravo-acquisition-report\/\">failed to earn sufficient shareholder support<\/a>.<\/p>\n<h2>Allegations of Conflicts of Interest by Instructure Shareholders<\/h2>\n<p>Goldsmith has been criticized by some Instructure shareholders for the private equity acquisition deal by Thoma Bravo sanctioned and proposed by Instructure\u2019s board. If approved, Goldsmith would have remained in his position as CEO.<\/p>\n<p>As Quoc Tran, investment officer at Lateef Investment Management, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-01-06\/another-instructure-investor-comes-out-against-thoma-bravo-deal\">told <i>Bloomberg <\/i><\/a>in January, \u201cGoldsmith staying on as CEO seems like a conflict of interest where he\u2019s putting his own interests ahead of shareholders. We don\u2019t think Dan has done a good job with Bridge and this deal rewards him rather than hold him accountable.\u201d At the time, Lateef controlled 1.5% of Instructure stock.<\/p>\n<p>The Thoma Bravo deal involved a private buyout at $47.31 per share. It has been criticized more widely as undervaluing the company and failing to undergo proper processes.<\/p>\n<p>As Praesidium, another Instructure investor that holds a 7.5% stake, wrote in a <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1320769\/000092189519002971\/ex991to13da310622008_121219.pdf\">13D form<\/a> filed with the SEC in January, \u201cNot only does the proposed offer represent a more than 10% discount to Instructure\u2019s closing share price of $52.96 on December 3, 2019, the day before the deal was announced, but we have many reasons to believe the Board did not undertake a full and fair sales process to ensure that shareholders receive maximum value for their investment.\u201d<\/p>\n<p>Goldsmith has been CEO at Instructure since June of 2018. In a statement announcing the change in leadership, Executive Chairman and former CEO Josh Coates praised Goldsmith\u2019s work. &#8220;The Board of Directors is grateful to Dan for his strategic guidance and leadership during his time at the Company,&#8221; Coates said. \u201dWe wish him all the best in his future endeavors.&#8221;<\/p>\n<h2>Thoma Bravo Revises Agreement to Tender Offer at $49.00 Per Share<\/h2>\n<p>Instructure\u2019s board failed to to gain sufficient support from its investors to approve the deal before the scheduled February 13 vote. The vote was then rescheduled for February 25.<\/p>\n<p>On February 18, however, Thoma Bravo returned with a tender offer to buy all outstanding Instructure shares at $49.00. After the tender offer is finalized, the two entities have planned a second step merger. During this step, all remaining Instructure shares \u201cwill be converted into the right to receive the same per share price paid in the tender offer,\u201d according to the press release.<\/p>\n<p>Instructure\u2019s board unanimously approved the measure. Following the announcement of the deal, the shareholder vote on February 25 has been canceled.<\/p>\n<p><em>Featured Image: JP Stanley, Flickr.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Instructure CEO Dan Goldsmith announced on February 18 that he plans to leave his role as chief executive of the company, along with his position on the board of directors. Goldsmith will remain in his post until March 6. In the meantime, senior Instructure leaders will form a joint office of the CEO as they [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":14906,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5,4],"tags":[],"class_list":["post-14923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-industry-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Instructure CEO to Step Down; Thoma Bravo Revises Agreement to Tender Offer at $49.00 Per Share - eLearningInside News<\/title>\n<meta name=\"description\" content=\"Instructure CEO Dan Goldsmith had been in his position since June of 2018. 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