Private equity firm Vista Equity Partners Management LLC is exploring options for two software companies it owns, PowerSchool and PeopleAdmin, that could involve combining them in a deal worth between $2 billion to $3 billion, according to people familiar with the matter.

Any deal would come as schools use more digital tools to enhance learning and reduce operational costs. Private equity firms have been taking advantage of the high valuations in the educational technology sector to cash out on their holdings.

Vista is working with investment bank UBS Group AG to evaluate its options for the two companies, the sources said this week, asking not to be named because the matter is confidential.

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