Kahoot Goes Private for $1.7 Billion in All Cash Deal
The popular education game developer Kahoot has gone private in a $1.7 billion all-cash deal.
At that valuation, the buyers of Kahoot, an Oslo-based developer that built and runs the popular quiz tool, paid a significant premium. But it’s still below the company’s COVID-era valuation, which valued the company at closer to $6 billion.
The Kahoot buyer group was led by Goldman Sachs’ private equity arm, with General Atlantic, KIRKBI Invest A/S (of LEGO Group), and Glitrafjord named as major investors.
Kahoot was listed on the Oslo Stock Exchange and went public in 2021. That same year, Kahoot acquired Clever, a platform developer that streamlined the edtech experience for schools, and according to their websites, says it serves half of all K-12 students in the U.S.
The premium price paid for Kahoot is an exception to the rule these days, as edtech companies find themselves in a more conversation valuation climate than the valuations paid during the pandemic. The visions many investors had of unlimited edtech growth, which fueled crazy valuations like Byju’s, have fallen apart, says Rich Jackim of Jackim Woods & Company, and valuations have returned to the more normal valuations seen for other SaaS companies.
In Jackim’s estimation, the new owners are likely to draw Kahoot and Clever farther from their roots, which raises questions about what the future direction of the company will be and whether Kahoot will continue to offer the Clever platform to schools for free for much longer.
If you own an education, training or edtech company and would like to explore your options, please contact Rich Jackim at rjackim@jackimwoods.com or 224-513-5142.
