Benzinga | Nov 18, 2021 02:24PM EST

Arco Platform Secures $150M Investment From Dragoneer, General Atlantic

* Arco Platform Ltd (NASDAQ:ARCE) has entered into agreements led by affiliates of Dragoneer Investment Group LLC for a $100 million strategic investment and General Atlantic Partners for a $50 million investment through the purchase of convertible senior notes.

* Each note will be convertible at the holder's option into Arco's Class A common shares at the agreed conversion rate, equivalent to an initial conversion price of $29 per share.

* The conversion price represents an approximately 65% premium to the trailing 30-day volume-weighted share price.

* Dragoneer and General Atlantic will own 5.6% and 2.8%, respectively, of the company's total shares.

* Arco intends to use the proceeds from the investments to fund its growth strategy, emphasizing cross-selling portfolio brands and making accretive acquisitions.

* Price Action: ARCE shares are trading higher by 12.6% at $19.49 on the last check Thursday.