By Michelle Caffrey
"Norwegian ed-tech company Kahoot agreed to be acquired by a group of investors led by Goldman Sachs Asset Management for $1.7 billion, or 17.2 Norwegian Krones.
Lego’s parent company, Kirkbi, is among the other co-investors, alongside private equity firm General Atlantic, Kahoot CEO Eilert Hanoa’s investment vehicle Glitrafjord, and other investors and management shareholders, Kahoot said.
The deal is expected to close by the end of the year, pending regulatory approvals.
In announcing the acquisition, Kahoot, which is traded on the Oslo Stock Exchange, also shared preliminary financial results for the second quarter. The company reported recognized revenue of more than $41 million for the quarter, up 14 percent year-over-year. The company also said its adjusted earnings before interest, taxes, depreciation, and amortization was $11 million for the quarter, an increase of 60 percent from the prior year’s period.
The offer to take Kahoot private offers shareholders about $3.48 a share, a 51 percent premium to its closing price of $2.28 in May when the investors disclosed their shareholding positions.
Kahoot was founded in 2013 and designed to offer students a game-based platform to learn a range of subjects. It has acquired seven companies in since it launched, one of the largest being a $500 million acquisition of digital learning platform Clever in May 2021.
“As the need for engaging learning, across home, school and work, continues to grow, I am excited about the opportunities this partnership represents for our users, our ecosystem of partners, and for the talented team across the Kahoot! Group, to advance education for hundreds of millions of learners everywhere,” Hanoa, Kahoot’s CEO, said in a statement.
Goldman Sachs noted Kahoot’s unique brand, extensive reach, and scalable technology and operations in its announcement of the deal, as well as its focus on a wide range of customers, from school children to enterprise clients.
The acquisition will allow Kahoot to benefit from operating as a private company, Goldman Sachs and co-investors said, noting that it plans to invest in product innovation and growth both organically and through acquisitions. Having access to private capital will allow the company to significantly boost it go-to-market strategy, it added.
“Kahoot is unlocking learning potential for children, students and employees across the world. The company has a clear mission and value proposition and our investment will help to grow its impact and accelerate value for all stakeholders,” Michael Bruun, global co-head of private equity at Goldman Sachs Asset Management, said in a statement.
“Through this transaction, we are pleased to partner with a fantastic leadership team and group of co-investors to expand a mission-critical learning and engagement platform and contribute to its further growth and innovation.”
The investment is another move by Lego parent company Kirkbi to grow its presence in the ed-tech market, after the company acquired BrainPop, maker of video-based learning tools, in October 2022.
In a statement, Kirkbi Chief Investment Officer Thomas Lau Schleicher said Kahoot’s mission resonates with his organization’s “core values” and it finds “the investment fits very well with Kirkbi’s long-term investment strategy.”...
For full post:
https://marketbrief.edweek.org/marketplace-k-12/k-12-dealmaking-kahoot-acquired-investor-group-includes-goldman-sachs/?cmp=eml-enl-mb+20230724&id=1712683
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Roxana Marachi, PhD
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