Oslo-based learning platform company Kahoot! has acquired the Drops language learning platform, headquartered in the Estonian capital Tallinn.
The total consideration reflects an enterprise value of $31 million on a cash and debt-free basis, in addition to a performance-based element up to $19 million depending on Drops’ performance from 2020 to 2022. The consideration will be settled in a combination of cash and Kahoot! shares, with completion expected before the end of the month.
Drops’ language learning apps teaches the essentials of language – alphabets and vocabulary – by combining a colourful user interface and simple illustrations with visual association and using a game-based approach and “snackable, swipe-based word games”. It offers 42 languages and has chalked up 25 million users since launching.
In June, Kahoot!, which is based in Norway, raised $28 million at a valuation of $1.4 billion. Just a few months later, in September, it was valued at more than $2 billion when it acquired Danish corporate training provider Actimo.
Daniel Farkas, co-founder and chief executive of Drops said: “The entire Drops team has spent the last five years building a new way to learn language, and we’re just getting started. We’ve introduced millions of users across the globe to our playful, dynamic approach to language learning. Kahoot! is doing the same for all types of learning. We’re excited to work with such a mission-aligned company to introduce the Drops platform to game-loving learners everywhere.”
Kahoot! chief executive Eilert Hanoa added: “Drops’ offerings and innovative learning model are a perfect match to Kahoot!’s mission of making learning awesome through a simple, game-based approach. Drops and language learning becomes the latest addition to our growing offering of learning apps for learners of all ages and abilities. We will continue to expand in new areas to make Kahoot! the ultimate learning destination, at home, school or work, and to make learning awesome.”
Kahoot! stated that in the past 12 months, more than one billion participating players in over 200 countries attended in excess of 200 million of its sessions.
Date published: 25 November 2020