It appears that Blackboard, a well known provider of learning management system (LMS) software to the higher education market, has accepted a $45-a-share cash takeover bid from a group led by Providence Equity Partners – a company founded in 1989 which manages some $23bn of assets and focuses on media, communications, information and education investments. The Blackboard deal is said to be worth some $1.64bn, plus the assumption of about $130m in net debt.

While this ends recent speculation about who would buy Blackboard – with some rumours linking Blackboard with Google and Pearson – this deal continues a wave of LMS market activity which includes the sale of Learn.com and Plateau Systems as well as Cornerstone OnDemand’s IPO.

The Blackboard acquisition is Providence’s third education deal in recent years. The private equity firm acquired educational services provider Study Group Pty Ltd last year. It joined Goldman Sachs Capital Partners and Leeds Equity Partners to acquire the for-profit college operator Education Management Corp, which sold shares to the public in 2009.

Comment: Industry commentators, such as Elliott Masie, are speculating that a further two or three deals along similar lines are going to be concluded in the next few months. So, if you’re thinking of buying an LMS, LCMS or talent management system, you may wish to pay special attention to the contract – notably regarding future arrangements if the current supplier is taken over by a rival.