Activist Praesidium Calls for Sale of Software Maker Instructure

Activist investor Praesidium Investment Management Co. has joined a push for education software company Instructure Inc. to explore a sale.

The New York-based hedge fund has identified dozens of strategic and private equity buyers that might be interested in the company’s learning management platform, Canvas, said Kevin Oram, Praesidium’s co-founder and managing partner. Canvas, which owns about 38% of the market now, could be worth $2.5 billion, he said.

“It’s extremely valuable and potentially very profitable,” Oram said Wednesday in an interview. He said Praesidium has been discussing its views with Instructure’s management team.

Salt Lake City-based Instructure’s shares ...