Kahoot buys language companies in agreement worth up to 450 million – E24

Kahoot has signed an agreement to purchase the language learning platform Drops. The deal values ​​the language platform at USD 31 million, equivalent to NOK 279 million, in cash and without debt.

Additionally, there is a performance-based element of up to $ 19 million in the deal. This part of the agreement depends on the performance of Drop in 2020, 2021 and 2022. Therefore, the total value of the contract is 50 million dollars, which corresponds to 450 million crowns.

Can learn 42 languages

Kahoot will pay for the Drops shares with cash and shares. The acquisition is expected to be completed before the end of November.

The chairman of the board, Eilert Hanoa in Kahoot, is very satisfied with the expansion.

“Drops services and the innovative learning model are the perfect match with Kahoot’s work to make learning fun through a simple, game-based approach,” says Hanoa.

The newest addition to the Kahoot universe is a series of apps that teach users, among other things, the alphabet and improve vocabulary. 42 different languages ​​can be learned in the app, and the company has had 25 million users since its launch. Drops had revenues of 6.3 million euros in 2019.

Believe in 90 million turnover

– The entire Drops team has used the past five years to build a new way of learning languages, and we have just started, says Drops co-founder and CEO Daniel Farkas in a statement.

In 2018, Drops was named the best app of the year in all categories by Google, according to Mashable. At that time, the app provided opportunities to learn 31 different languages.

In October, the Estonian company stated that it had secured 10 million new users this year, and that revenue in 2020 was expected to end at around ten million dollars (90 million crowns), writes technology company Venturebeat.