Kahoot, a Norwegian company has made its name with a platform that helps students and educators to create and share game-based online learning sessions has acquired a Danish start-up named Actimo.
Actimo provides the much-needed platform for businesses in order to train and engage with employees. Kahoot, which is valued at over $2 billion acquired the start-up to boost another segment of its business; corporate customers. With an enterprise value between $26 million- $33 million, the purchase was made with a combination of cash and shares and it is expected to be completed by October 2020.
While the amount may not sound very big, in a market where companies are getting hundreds of millions in their Series A funding round, but that also creates different challenges for both the investors and the founders. However, this is a strong exit for Actimo, which raised less than $500,000. Also, this purchase will eventually help Atkimo to scale faster as it will operate under the wings of Kahoot, which has been scaling at an enormous rate.
Currently, Kahoot has more than 1 billion active users. In the last 12 months, 200 games have been played on its platform. In June, while Kahoot raised as much as $28 million in funding, it announced that 100 million games had been played already.
Due to corona virus, remote learning and remote work are becoming a norm and a lot more common as a long term option, which has skyrocketed the valuation of Kahoot. With few of its shares traded on the Merkur Stock Market in Norway, the company has a market cap of $2.1 billion. Surprisingly, the amount was only $1.4 billion in June.
However, the company believes it’s the corporate from where most of the revenue will come from, and this is the reason why it’s so keen to grow in that segment. According to Kahoot, with Actimo it aims to build out a product set with the intent to help organizations with company culture.
Actimo’s solution on the other hand is quite interesting; it has built a platform where employers can track and encourage employees on how they are engaging across their organization and employees can track the training they need to do, provide feedback and engage with other employees.
Eske Gunge, CEO at Actimo said in a statement, “We are thrilled to join forces with Kahoot! in our mission to develop next-level solutions that connect remote employees and boost employee engagement and productivity,” He also added, “Being part of Kahoot! and with our experience of working with innovative and ambitious enterprises across industries, we can together set a new standard for corporate learning and engagement.”
Kahoot CEO, Eilert Hanoa, said in a statement. “We are excited to welcome the Actimo team to be part of the fast-growing Kahoot! Family.” He also mentioned, “This acquisition will further extend Kahoot!’s corporate learning offerings, by providing solutions tailored for the frontline segment, as well as to solidify company culture and engagement among remote and distributed teams in companies of all types and sizes. This continues our expressed ambition to also grow through M&A by adding strategic capabilities that we can leverage across our global platform.”
