We advised PlanB Labs, an Estonian start-up developing the Language Drops language learning platform, in preparing for and closing the sale of Drops to Kahoot!, the world’s leading game-based learning platform.
TOP 5 exit in Estonia
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. With a total value of USD 50 million, this is one of the biggest exits in Estonia.
Combining innovation and education
Drops is one of the fastest-growing language platforms in the world, with 42 languages and 25 million users since its launch. In 2018, Google named Drops the best app of the year. In 2019 Fast Company named Drops as one of the top 10 most innovative education companies in the world.
As a result of the transaction Kahoot! has expanded its global learning platform into language learning. Through the acquisition, Kahoot! plans to further expand its platform and make language learning awesome for millions of Kahoot! users worldwide as well as bringing the magic of Kahoot! to Drops users.
Says Dániel Farkas, co-founder and CEO of 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.”
Adds Eilert Hanoa, CEO of Kahoot! “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 for Kahoot!’s mission of making learning awesome through a simple, game-based approach.”
Our services and client team
We advised the client in preparing for and closing the transaction as well as advising on tax, corporate and trademark matters. Our client team was led by partner Paul Künnap and included senior associates Robin Teever, Kaido Künnapas and Piret Lappert along with associate Mirell Prosa.