Drops from Estonia was acquired by Kahoot for $31 million

Drops, a Talinn, Estonia company operatting a business based on a game-based language learning application, announced that it was acquired by Kahoot from Norway.

The deal was made for 100% of the company's equity at a $31 million valuation on a cash and debt-free basis. The transaction includes an earnout of $19 million depending on Drops performance in 2020-2022.

Drops, founded in 2015 by CEO Daniel Farkas and Mark Szulyovszky, developed a game-based language platforms, covering 42 languages and used by 25 million users since launch. For 2019, Drops reported gross revenue of EUR 6.3 million ($7.5M) with approx. 40% cash conversion.

Kahoot, founded in 2011 as Mobitroll out of NTNU Technology Transfer by Johan Brand, Jamie Brooker, Åsmund Furuseth and Morten Versvik., operates a game platform that is used for education by 70 million users a month. The company, which is listed on Norway's Merkur stock exchange, announced securing funding of $215 million from Softbank in October 2020.