FOLSOM, Calif. - PowerSchool (NYSE: PWSC), a prominent provider of cloud-based software for K-12 education, announced today that it has acquired Allovue, a leader in K-12 financial planning and analytics software. The move aims to expand PowerSchool's financial management and analytics capabilities, offering a more comprehensive suite of tools for budgeting and resource management in education.
The integration of Allovue's solutions will provide educators and administrators with advanced budgeting tools, real-time budget information, and analytics designed to facilitate transparent and equitable resource allocation. The acquisition is expected to offer improved financial management features that are user-friendly and can be integrated with existing systems.
Hardeep Gulati, CEO of PowerSchool, emphasized the importance of budget management and transparency, particularly as federal stimulus funding decreases. He stated that combining Allovue with PowerSchool's existing products will enhance the ability of districts to manage finances effectively.
Jess Gartner (NYSE:IT), CEO and Founder of Allovue, who will join PowerSchool as Group Vice President, expressed enthusiasm for the partnership, noting the mutual goal of providing equitable resource administration solutions. Allovue's customers will continue to receive support from PowerSchool and can look forward to enhanced features and the opportunity to leverage PowerSchool's additional offerings.
Cincinnati Public Schools, which has utilized both PowerSchool ERP and Allovue applications, praised the two companies for their role in supporting the district's budgeting processes and strategic initiatives.
Allovue, established in 2013, aims to empower educators with innovative financial solutions to maximize student outcomes. The company supports over $50 billion of K-12 education spending, aiding decisions on budgeting and spending.
PowerSchool, serving over 50 million students in more than 90 countries, continues to strengthen its position as a leading education technology company with this acquisition. The financial terms of the deal have not been disclosed.
This report is based on a press release statement from PowerSchool Holdings, Inc.
InvestingPro Insights
As PowerSchool (NYSE: PWSC) fortifies its financial management offerings with the acquisition of Allovue, investors and stakeholders may find the latest metrics from InvestingPro illuminating. The company's market capitalization stands at $4.02 billion, indicating its substantial presence in the education technology sector. Despite a challenging P/E ratio of -225.94, reflecting the company's current lack of profitability, the revenue growth over the last twelve months as of Q1 2023 is a positive sign at 9.89%. Additionally, the gross profit margin during the same period was a robust 68.63%, showcasing the company's ability to maintain profitability at the operational level.
Two InvestingPro Tips that are particularly relevant in light of the acquisition include the expectation for net income growth this year and the prediction by analysts that the company will turn profitable this year. These insights may suggest a favorable outlook for PowerSchool as it integrates Allovue's capabilities, potentially driving efficiency and growth. For those considering a deeper dive into PowerSchool's financials, InvestingPro offers a wealth of additional tips; there are 9 more tips available to subscribers, providing a comprehensive analysis of the company's financial health.
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