Swedish private equity firm EQT is believed to be weighing up a bid for the Advent Partners-owned Compass Education, in addition to Goldman Sachs Asset Management.
Kohlberg Kravis Roberts earlier had a look but has now walked away, sources say.
Another potential suitor is private equity firm Warburg Pincus, according to speculation in the market.
The business has been for sale through Royal Bank of Canada.
Its private equity owner is understood to be hoping for a price as high as $700m, some say.
Compass, which Advent bought into during 2018, works with schools to simplify their technology ecosystems. It has dealt with 1800 schools in Australia, Ireland and Canada.
While private equity firms are sizing up a bid for Compass Education, the interest in another education software business, Education Horizons, is believed to be from strategic investors. It’s up for sale through Potentia Capital.
Education Horizons describes itself as a world-leading education technology provider, offering school software solutions.
EQT has been around the hoop on a number of technology companies in Australia in the past, previously bidding for the listed Iress.
Elsewhere, Fletcher Building announced on Monday it had sold its Australian-based plumbing supplies business Tradelink to Metal Manufactures for $170m, including $160m cash and a $10m deferred payment.
Miles Advisory worked on the sale that came after Fletcher’s wrote down the unit’s value by $NZ122m at the start of the year to about $NZ150m. It will book a $32.5m impairment for its 2024 financial year result.
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