Kahoot! announced the acquisition of Drops, one of the fastest growing language platforms in the world.
Kahoot! is acquiring 100% of the shares in Drops for a total consideration reflecting an enterprise value 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 2020-2022.
The consideration will be settled in a combination of cash and Kahoot! shares.
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.
Language learning has exploded
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.