The Norwegian company Kahoot originally made a name for itself with a platform that enables educators and students to create and share game-based online learning lessons. It creates a huge public catalog of gamified lessons created by its community. Today the startup, valued at over $ 2 billion, announces an acquisition to boost another area of its business: corporate clients.
Kahoot has acquired the Danish startup Actimo, which offers a platform for companies to train employees and to get in touch with them. Kahoot said the purchase will be made using a combination of cash and stock, adding up to a total enterprise value of between $ 26 million and $ 33 million for the smaller company. The sale is expected to be completed in October 2020.
It may sound like a modest sum in a technology market where companies currently and regularly see paper valuations totaling hundreds of millions in the Serie A phase, but it also offers a different kind of development for both founders and their investors.
This is actually a strong exit for Actimo, which had raised less than $ 500,000, according to PitchBook. And it puts Actimo under the wing of a company that has scaled rapidly around the world and, like others in online education and remote working, finds that the current state of social distancing due to Covid-1
To give you an idea of Kahoot’s size and growth, the company claims it currently has over 1 billion active users, in addition to a total of 4.4 billion users since the platform was first launched in 2013. In recent years Some 12 months ago, 200 games were played on its platform. When Kahoot announced in June that it had raised $ 28 million, he announced that 100 million games had been played.
Given its growth and future opportunities – even ignoring the progression of the coronavirus, it looks like remote working and distance learning as a longer-term option will be at least much more common – the company has also seen a surge in its rating. With some of its stocks traded on the Norwegian Merkur market, the company currently has a market capitalization of NOK 18.716 billion, which at today’s rates is roughly $ 2.08 billion. That number was $ 1.4 billion in June.
Kahoot’s focus on the corporate sector isn’t new. The company has been building a business in this area for years. It is said that over the past 12 months 2 million sessions with 20 million participating “players” of its corporate training games were recorded, with around 97% of the Fortune 500 among those users. Customers include Facebook (for sales training), Oyo (hospitality training and onboarding) and Qualys (for surveys during a conference).
While much of the Kahoot audience is in the education sector, most of the company’s revenue is generated. This is one reason why the segment should be expanded with more services and users.
According to Kahoot, Actimo’s goal is to develop a product set that is intended to support companies with a corporate culture. Many companies have been working for eight months now and prioritize entire teams that work regularly outside of their physical offices.
In the best of times it is not easy to feel a team like a team and an individual feeling more than a transactional consideration for an employer. Now as we continue to work physically apart, more tools and effort will be required to find the right balance.
In this context, Actimo’s solution is only one aspect, but possibly an interesting one: it has created a platform where employees can follow the training they have taken or need to take, get in touch with other employees and give feedback as well as employers can use it to generally track and nurture employee engagement across the organization and in its various endeavors. Customers include around 200 companies including Circle K, Hi3G and Compass Group, and a current ARR of $ 5 million.
For comparison, Kahoot reported an ARR of $ 25 million in its Q2 financial data released in August. Billing revenue for the quarter was $ 9.6 million, up 317% from the year-ago quarter. The company has also raised approximately $ 110 million in private funding from Microsoft and Disney.
Since Kahoot wants to look for more than just a temporary place in the IT and software structure of a company – the impermanence of attention is always a risk for anything game-based – it makes a lot of sense to take Actimo in hand and to work on ways to couple the platform with his other corporate work. You can also envision a time when a similar dashboard might be created for the education sector.
“We are very happy to welcome the Actimo team as part of the fast growing Kahoot! Family, ”said Kahoot! CEO Eilert Hanoa in a statement. “This acquisition will become the Kahoot! Corporate learning offering. Expand further by providing solutions that are tailored to the frontline segment as well as cementing the corporate culture and engagement of remote and distributed teams in organizations of all shapes and sizes. This continues our explicit ambition to also grow through mergers and acquisitions by adding strategic capabilities that we can leverage on our global platform. “
“We are very excited to be working with Kahoot! in our mission to develop next level solutions that connect remote workers and increase employee engagement and productivity, ”said Eske Gunge, CEO at Actimo, in a statement. “To be part of Kahoot! With our experience from working with innovative and ambitious companies in various industries, we can jointly set a new standard for corporate learning and engagement. “