Private equity firm Thoma Bravo initiated steps to potentially sell Instructure, an education software provider valued at $3 billion.

The firm, owning an 83% stake in Instructure, has engaged JPMorgan Chase (NYSE: JPM) to seek interest from prospective buyers, which may include other private equity entities, Reuters reported.

The potential sale announcement led to Instracture shares rising 4.5% in afterhours trading Friday.

Instructure is a prominent player in the educational technology sector, offering software services to educational institutions across various levels. The company boasts a global customer base, with over 8,000 clients in more than 100 countries.

Thoma Bravo took Instructure private in a $2 billion deal in 2020 and subsequently relisted it through an initial public offering a year later.

However, the company's stock has been trading close to its $20 IPO price for the past three years. T

he initial surge in demand for remote learning tools during the pandemic has waned as competition in the sector increased.

Earlier in the year, Instructure expanded its offerings by acquiring Parchment, a company specializing in academic credential management, for $835 million.