Chinese online games developer NetDragon has acquired a 100 per cent stake in US online learning community Edmodo.
The online learning platform was purchased for $137.5 million in a “definitive agreement”. The transaction will be paid in cash and shares of NetDragon’s education subsidiary, which is valued at a pre-acquisition valuation of $1.8 billion.
NetDragon has been expanding its operations into the online education sector over the past few years. Previous acquisitions include LA games developer JumpStart and London-based interactive learning technology provider Promethean
"We are truly excited by the synergies and monetisation opportunities that will be created through this acquisition,” said NetDragon vice chairman Simon Leung.
“We believe our complete product offerings will bring learning experience to another level for learners around the world, and more importantly, will continue to create value for our shareholders."
Last year NetDragon’s educational portfolio contributed to 54 per cent of its ¥3.868 billion ($613 million) revenue.