Gamified e-learning platform Kahoot is going fully private in a $1.7 billion acquisition deal. The acquisition, announced Friday, is led by Goldman Sachs Assets Management’s private equity division and also includes major Kahoot shareholders General Atlantic, LEGO Group’s KIRKBI Invest A/S and Glitrafjord.
The Oslo, Norway-based company was among many e-learning platforms that saw their values spike during the COVID-19 pandemic, when schools in many nations worldwide pivoted to remote learning. Kahoot’s market cap peaked at $6.16 billion in February 2021 and is $1.63 billion as of Wednesday.
The slip in valuation reflects a broader dip in the ed tech market as the pandemic waned, though a forecast released in February predicted a return to pre-pandemic venture capital investment levels this year. The March collapse of Silicon Valley Bank, however, added even more wariness to the startup investment space.
In the Kahoot acquisition, however, investors are banking on the platform’s long-term value in the education marketplace.
“Kahoot! is unlocking learning potential for children, students and employees across the world,” Michael Bruun, global co-head of private equity at Goldman Sachs Asset Management, said in a statement. “The company has a clear mission and value proposition and our investment will help to grow its impact and accelerate value for all stakeholders.”
