Arcadia Capital Advises Mainstay on Sale to Lemnis

Arcadia Capital, the premier strategic advisor and investment bank to leaders in the technology and software ecosystem, served as financial advisor to Mainstay, a portfolio company of leading venture capital firms, including Reach Capital, Relay Ventures, and Rethink Ventures, in its acquisition by Lemnis, a public charity dedicated to expanding educational opportunity.

The acquisition brings Mainstay's AI-powered student engagement platform under the Lemnis umbrella, where it will convert from a Public Benefit Corporation to a nonprofit division. Mainstay's technology, used by more than 200 colleges and universities, combines behavioral science and conversational AI to boost enrollment, persistence, and completion for students navigating critical moments in their educational journey.

Lemnis is a public charity investing in solutions that expand learning for all. Through its Collective mergers and acquisitions strategy, Lemnis acquires mission-aligned organizations and provides patient capital and operational support for long-term growth and impact. The Mainstay transaction is Lemnis' second acquisition this year, following its purchase of the nonprofit InsideTrack in February.

"Emerging technologies have tremendous potential to help more students navigate the path to and through college. But that only works if they're built and implemented in ways that improve—not reduce—human connection and interaction," said Tony Frey, CEO of Mainstay. "For more than a decade, our work has been about helping institutions bring evidence-based, technology-enabled strategies to bear on helping students take the next step in their educational journey. Our nonprofit structure will enable us to deepen and sustain our impact in unlocking opportunity for more students."

"This transaction reflects our conviction that the next chapter of education will be shaped by organizations that successfully combine breakthrough technology with the empathy, support and care that only humans can provide," said Melissa Johnston, founding CEO of Lemnis. "Expanding opportunity for students in an increasingly complex world requires reimagining how technology and human connection work together to deliver the kinds of learning experiences that every student deserves."

The transaction underscores Arcadia Capital's continued leadership in advising high-growth software, SaaS, AI, agentic AI and Tech Services businesses on strategic transactions. The deal reinforces Arcadia's unique ability to both strategically advise and efficiently deliver transformative outcomes for founders, operators and financial sponsors.