(Reuters) - Instructure is planning an initial public offering later this year that could value the education software company at $500 million to $800 million, according to people familiar with the matter.
Instructure, based in Salt Lake City, has hired Morgan Stanley (MS.N) and Goldman Sachs (GS.N) to help prepare for the IPO, which has been filed confidentially, the people said. They requested anonymity because the news of the IPO was not public.
Under the Jumpstart Our Business Startups Act, new companies that generate less than $1 billion in revenue can file for IPOs with the U.S. Securities and Exchange Commission without immediately disclosing details publicly.
Instructure, Morgan Stanley and Goldman Sachs did not immediately respond to requests for comment.
Instructure was founded in 2008 and makes Canvas, a tech platform that helps colleges and school districts manage their classrooms.
The company’s learning management systems are used by 18 million students and teachers from more than 1,400 educational institutions, including Virginia Tech, the University of Auckland and the public schools of North Carolina.
This year Instructure also rolled out a corporate learning product called Bridge, in which it said it would invest some of its latest venture funding.
The company in February raised a $40 million round of funding led by Insight Venture Partners. A previous round of $30 million in 2013 was led by Bessemer Venture Partners.
OpenView Venture Partners and Epic Ventures have also invested in the company, which has a total of $90 million in venture funding.
Instructure is one of a number of companies that have sprung up in recent years to compete with established education software makers such as Blackboard Inc. Reuters reported last month that Blackboard was exploring a sale that could value it at more than $3 billion, including debt.
Education software and services have been an active area of consolidation as institutions facing increasing competition for students start to upgrade their learning tools.
Reuters reported on Wednesday that buyout firm TPG Capital LP was in advanced talks to acquire Ellucian Co LP in a deal that could value the U.S. provider of software to universities and colleges at $3.5 billion, including debt.
Instructure Chief Executive Officer Josh Coates previously founded online storage startup company Mozy.com, which EMC Corp EMC.N acquired in 2007 for $76 million.
Reporting by Liana B. Baker in New York; Editing by Carmel Crimmins and Lisa Von Ahn