OSLO: Kahoot!, the global learning platform company, announced the acquisition of Drops, one of the fastest growing language platforms in the world, for an enterprise value of $31 million.
Through this acquisition, Kahoot! plans to further expand its platform and make language learning awesome for millions of Kahoot! users worldwide as well as bring the magic of Kahoot! to Drops users.
Kahoot! is acquiring 100% of the shares in Drops (PlanB Labs OÜ) for a consideration reflecting an enterprise value (EV) of USD 31 million on a cash and debt-free basis, in addition to a performance-based element up to USD 19 million depending on Drops performance in 2020, 2021 and 2022.
The consideration will be settled in a combination of cash and Kahoot! shares. Completion of the transaction is subject to customary conditions and the transaction is expected to be completed in November 2020.
“We are thrilled to welcome Drops to the expanding Kahoot! family as we advance towards our vision to become the leading learning platform in the world,” said Eilert Hanoa, CEO, Kahoot!
“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! is on a mission to make learning awesome by empowering all educators, teachers, students, and employees to unlock their full learning potential through its learning platform. In the last 12 months, more than one billion participating players in over 200 countries attended over 200 million Kahoot! sessions.
The acquisition of Drops is part of Kahoot!’s strategy to expand into new areas of learning and make Kahoot! a trusted destination for all learners, whether at school, work or home.
Language learning has exploded due to globalization as well as, more recently, due to the surge in e-learning as businesses and schools adapt to remote learning. As a result, the global digital language learning market size is expected to reach more than $8 billion by 2025.
Drops’ award-winning family of language learning apps teaches the essentials of language – alphabets and vocabulary – by combining a colorful user interface and simple illustrations with visual association and using a game-based approach.
With snackable, swipe-based word games, Drops keeps you engaged and helps you forge the foundational 3Cs of language learning – core vocabulary, confidence, consistency while avoiding burnout. Drops is one of the fastest-growing language platforms in the world, with 42 languages and 25 million users since launch and counting.
In 2018, Google named Drops the best app of the year, and in 2019 Fast Company named Drops as one of the top 10 most innovative education companies in the world. For 2019, Drops reported gross revenue of EUR 6.3m with approx. 40% cash conversion.
“The entire Drops team has spent the last five years building a new way to learn language, and we’re just getting started,” said Daniel Farkas, co-founder and CEO, Drops.
“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.”