Rosetta Stone to be acquired by Dallas company for $792M
Transaction expected to close during fourth quarter
Arlington-based language learning company Rosetta Stone Inc. will be acquired by Dallas-based digital education company Cambium Learning Group Inc. (backed by private equity firm Veritas Capital Management LLC) for $792 million, the company announced Monday.
The transaction is expected to close during the fourth quarter this year.
“This transaction represents the next step on a path that, over the past several years, has transformed our language business and built a previously small K-12 software business into a growing leader in education technology,” Rosetta Stone CEO and Chairman John Hass said in a statement. “As part of Cambium, we will have the scale and resources to fulfill our mission and to further leverage the strength of our outstanding team to continue building and delivering technology-based solutions that support the ability to change learners’ lives through language and literacy education.”
Founded in 1992, Rosetta Stone offers products and services that help learners read, write and speak more than 30 languages. Cambium offers digital curriculum in subjects such as math, science, literacy and technology.
“With the significant addition of Rosetta Stone, including Lexia Learning, we are now able to deliver even more expansive solutions to teachers, administrators, and learners everywhere, and offer a continuum of best-in-class digital solutions that deliver personalized instruction,” Cambium CEO John Campbell said in a statement. “The team at Rosetta Stone is truly exceptional and I look forward to working together to grow their already-impressive leadership position.”
Goldman Sachs & Co. LLC was the financial adviser to Rosetta Stone’s board of directors and Hogan Lovells US LLP served as the company’s legal adviser. Schulte Roth & Zabel LLP served as Cambium’s legal adviser.