Game-based learning platform Kahoot! announced the acquisition of Drops, Estonian language learning app, for up to $50 million.
It is acquiring 100% of the shares in Drops for a total 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 in 2020-2022. The performance-based $19 million will be settled in a combination of cash and Kahoot! shares. The deal – the company’s biggest to date – will close this month.
“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!”
According to the press release, in 2019, Drops reported gross revenue of EUR 6.3m with approx. 40% cash conversion. Drops supports 42 languages and so far it has reached 25 million users since launch.
“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.”