TPG Capital in advanced talks to buy US-based software firm Ellucian Co for around $3.5 bn

Private equity firm TPG Capital is in advanced talks to buy US-based software maker to universities and colleges Ellucian Company for around $3.5 billion, including debt, Reuters yesterday reported, citing people familiar with the matter.

Ellucian, which is owned by private equity firms Hellman & Friedman and JMI Equity, are in final stages of talks with TPG after running an auction for the company, the report said.

Founded in 1968 as Datatel Inc and merged with SunGard Higher Education to form a new company called Ellucian in 2012. Hellman & Friedman and JMI Equity acquired Datatel in 2009 for $570 million.

The Virginia-based firm provides software, services, analytics, and insights for higher education institutions globally.

It offers student information systems, finance and HR systems, and recruiting and retention systems; and professional, technology management, application management, management consulting, cloud application hosting, application software implementation, training, and education services.

It serves 2,400 institutions in 40 countries across the globe.

Blackboard Inc, a US software company owned by Providence Equity Partners, is also exploring a sale that could value it at as much as $3 billion, including debt, Reuters had reported in late July.