- Global learning platform company Kahoot! recently announced it is buying Drops. These are the details.
Global learning platform company Kahoot! recently announced it is buying Drops. Drops is one of the fastest-growing language platforms in the world. And 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 buying 100% of the shares in Drops for a total consideration reflecting 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 in 2020-2022. And 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.
Kahoot! is on a mission to make learning interesting by empowering all educators, teachers, students, and employees to unlock their full learning potential through its learning platform. And in the last year, more than one billion participating players in over 200 countries attended over 200 million Kahoot! sessions. This deal 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.
Drops’ 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. And with snackable and swipe-based word games, Drops keeps you engaged and helps you forge the foundational 3Cs of language learning: core vocabulary, confidence, and consistency.
Drops is known as one of the fastest-growing language platforms in the world with 42 languages and 25 million users since launch and counting. For 2019, Drops reported gross revenue of EUR 6.3m with approx. 40% cash conversion.
KEY QUOTES:
“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. 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!”
— Eilert Hanoa, CEO, Kahoot!
“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.”
— Daniel Farkas, co-founder and CEO, Drops
