In a significant development in the EdTech sector, Kahoot, the popular educational gaming platform, has been acquired in an all-cash private equity deal. The deal, led by the private equity division of Goldman Sachs Assets Management, values Kahoot at $1.7 billion.
A New Chapter for Kahoot
Founded in Oslo in 2019, Kahoot has become a beloved platform for creating, sharing, and playing educational games. The platform has hosted hundreds of millions of learning sessions with 9 billion participants across more than 200 countries and regions. It currently boasts over 1 million paying users.
The acquisition comes at a time when Kahoot, like many tech companies, has been grappling with the economic climate post-pandemic. Despite the challenges, Kahoot reported a 14% increase in revenues in Q2, reaching $41 million, and a 60% increase in Ebitda to $11 million.
The Deal Details
The deal values Kahoot at 35 NOK per share, representing a 53.1% premium on Kahoot’s publicly traded shares as of May 22, 2023. However, this valuation is a significant step down from the company’s peak during the Covid-19 pandemic.
The acquisition is being led by Goldman Sachs Assets Management’s private equity division, with existing Kahoot backers General Atlantic, LEGO Group’s KIRKBI Invest A/S (“KIRKBI”), and Glitrafjord (controlled by Kahoot CEO Eilert Hanoa) named as the other major shareholders. Other unnamed investors and management will also have stakes in Kahoot.
The Future of Kahoot
Despite the acquisition, Kahoot’s mission remains the same: to make learning awesome. The platform’s portfolio of solutions drives billions of learning interactions every year, and the team is committed to putting magic learning moments at everyone’s fingertips.
The new partnership represents exciting opportunities for Kahoot’s users, its ecosystem of partners, and the talented team across the Kahoot Group. As the need for engaging learning continues to grow across home, school, and work environments, this partnership is poised to advance education for hundreds of millions of learners everywhere.
This acquisition marks a new chapter in Kahoot’s journey and highlights the growing interest and investment in the EdTech sector. As the landscape of education continues to evolve, it will be interesting to see how this acquisition shapes Kahoot’s future.
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