Kahoot, the gamified e-learning platform based in Oslo, has recently announced its plans to go private in a $1.7 billion deal led by Goldman Sachs Asset Management’s private equity division. This move signifies a significant development for the EdTech industry as Kahoot has gained popularity for its interactive platform that allows users to create and participate in educational games. With billions of students and adults worldwide actively using Kahoot, the company has received investments from various sources over the years, including Microsoft, Disney, and Softbank.
Key stakeholders in the deal include existing Kahoot backers General Atlantic, KIRKBI Invest A/S (a subsidiary of the LEGO Group), and Glitrafjord (controlled by Kahoot CEO Eilert Hanoa). Additional investors and management will also hold stakes in Kahoot. This acquisition is expected to provide stability to the company’s shares, and it marks the end of Kahoot’s two-tier approach to its business finance.
While the deal represents a premium compared to Kahoot’s publicly traded shares, it is a significant drop from the company’s highest valuation during the peak of the Covid-19 pandemic. Kahoot, founded in 2012, has two divisions serving K-12 students and adults/businesses. It has facilitated numerous learning sessions and has accumulated over 9 billion participants across more than 200 countries and regions. Additionally, Kahoot currently boasts over 1 million paying users and has raised more than $500 million in funding.
Since the outbreak of the pandemic, Kahoot experienced a surge in popularity as remote learning gained traction. However, like many other tech businesses, Kahoot has faced challenges in the post-pandemic public markets. As consumers and businesses gradually transition back to physical spaces, the demand for digital services such as e-learning and e-commerce has declined. Investors are now adjusting to this new reality, where economic recession and inflation are affecting market dynamics.
Despite these challenges, Goldman Sachs Asset Management’s private equity division remains optimistic about Kahoot’s long-term potential. They believe in the company’s mission and value proposition to unlock learning potential for individuals worldwide. General Atlantic, another major shareholder, also expresses their commitment to continue supporting Kahoot’s growth. KIRKBI Invest A/S, being a subsidiary of the LEGO Group, sees the investment as aligning with their long-term strategy and values.
Kahoot recently released its financial report for the second quarter, which paints a mixed picture. While the company’s revenues and invoiced revenue have increased incrementally compared to the previous year, Kahoot’s cash equivalents by the end of Q2 were relatively low.
Overall, Kahoot’s decision to go private is a significant development for the EdTech industry. As the company continues to innovate and inspire learners worldwide, this partnership with Goldman Sachs Asset Management, General Atlantic, and other investors is expected to sustain and accelerate Kahoot’s growth. By leveraging their learning and engagement platform, Kahoot aims to make education exciting and accessible to millions of learners globally.
