Arlington, VA – In a significant move within the education technology sector, Cambium Learning Group, a leading provider of digital education solutions backed by Veritas Capital, has announced the acquisition of Rosetta Stone Inc., a renowned name in technology-based learning. The all-cash transaction, valued at approximately $792 million, marks a strategic expansion for Cambium, adding Rosetta Stone’s language learning and literacy divisions to its already robust portfolio of educational brands.
This acquisition, finalized on August 31, 2020, positions Cambium Learning Group as an even more comprehensive provider of digital learning solutions, catering to a wider range of educational needs from Pre-K through adult learning. For Rosetta Stone, becoming part of Cambium Learning Group offers enhanced scale and resources to further its mission of transforming lives through education.
Strategic Rationale Behind Cambium Learning Group’s Acquisition
The decision to bring Rosetta Stone under the Cambium Learning Group umbrella followed a thorough strategic review by Rosetta Stone’s Board of Directors. This acquisition is set to create powerful synergies, combining Rosetta Stone’s expertise in language and literacy education with Cambium’s diverse range of digital and blended learning solutions.
John Hass, former Chairman and Chief Executive Officer of Rosetta Stone, highlighted the transformative journey of Rosetta Stone, particularly its growth in the K-12 education technology sector. He expressed confidence that under Cambium Learning Group, Rosetta Stone will be better equipped to “fulfill our mission and to further leverage the strength of our outstanding team.”
John Campbell, Chief Executive Officer of Cambium Learning Group, emphasized Cambium’s strategic approach to “curate a portfolio of only the best learning brands.” He noted that the inclusion of Rosetta Stone, particularly Lexia Learning, allows Cambium to offer “even more expansive solutions” and a “continuum of best-in-class digital solutions that deliver personalized instruction.”
Ramzi Musallam, Chief Executive Officer and Managing Partner of Veritas Capital, echoed this sentiment, stating that Rosetta Stone brings “highly strategic products and intellectual property to Cambium’s market-leading family of brands.” Veritas Capital’s backing underscores a commitment to investing in and growing Cambium’s portfolio to enhance learning outcomes through technology.
Rosetta Stone and Lexia Learning: Enhancing Cambium’s Digital Education Ecosystem
Founded in 1992, Rosetta Stone has become synonymous with innovative digital language learning solutions, supporting learners in developing reading, writing, and speaking skills in over 30 languages. Its iconic brand serves individual customers, educational institutions, and businesses worldwide.
Lexia Learning, Rosetta Stone’s literacy division, brings over 35 years of experience and leadership in literacy education to Cambium Learning Group. Lexia’s programs are research-based and widely respected, focusing on building essential reading and oral language skills. Key solutions include:
- Lexia® Core5® Reading: A differentiated online literacy instruction program for students in grades pre-K-5, catering to diverse learning abilities.
- Lexia® PowerUp® Literacy: An online solution designed to support struggling readers in grades 6-12, helping them achieve reading proficiency and confidence.
- Rosetta Stone® English: A blended online solution aimed at developing oral language skills in emergent bilingual students.
- Lexia® Rapid™ Assessment: A research-backed, computer-adaptive tool for reading and language assessment.
The integration of Rosetta Stone and Lexia Learning into Cambium Learning Group expands Cambium’s capabilities to offer a comprehensive suite of digital learning tools. This includes solutions for language acquisition, literacy development, math, science, and assessment, creating a more holistic educational offering.
Cambium Learning Group: A Portfolio Focused on Improving Learning Outcomes
Cambium Learning Group is known for its commitment to driving proficiency, equity, and positive learning outcomes through its portfolio of award-winning brands. These brands include:
- Learning A-Z®: Provides online differentiated instruction for elementary school reading, writing, and science.
- ExploreLearning®: Offers online interactive math and science simulations, along with solutions for math fact fluency and K-2 science.
- Voyager Sopris Learning®: Delivers blended learning solutions to accelerate literacy and math skills in struggling learners, and provides professional learning for educators.
- Cambium Assessment: Focuses on innovative assessment solutions for state and district levels.
- VKidz® Learning: Offers online PreK-12 homeschool curriculum and programs for literacy and math.
With the addition of Rosetta Stone, Cambium Learning Group further solidifies its position as a leader in the EdTech space, providing educators and learners with a wider array of high-quality, research-backed digital resources. This acquisition reflects Cambium’s ongoing commitment to empowering educators and improving student outcomes through innovative technology.
Veritas Capital’s Strategic Investment in Education Technology
Veritas Capital, a leading private investment firm specializing in companies providing critical products and services, plays a crucial role in Cambium Learning Group’s growth strategy. Veritas’s investment in Cambium and the subsequent acquisition of Rosetta Stone demonstrates a strong belief in the future of education technology and its potential to transform learning.
Veritas has a proven track record of strategically transforming companies through both organic growth and acquisitions. Their support enables Cambium Learning Group to continue expanding its portfolio and investing in innovative solutions that address the evolving needs of the education sector.
Looking Ahead: The Future of Digital Learning with Cambium Learning Group
The acquisition of Rosetta Stone by Cambium Learning Group is poised to have a significant impact on the digital learning landscape. By combining the strengths of both organizations, Cambium is creating a more powerful and comprehensive platform to support educators and learners worldwide.
This strategic move not only expands Cambium’s product offerings but also reinforces its commitment to providing effective, personalized, and equitable learning experiences. As digital learning continues to evolve, Cambium Learning Group, with its expanded portfolio and the backing of Veritas Capital, is well-positioned to lead the way in shaping the future of education technology.
The transaction was facilitated with financial advisory from Goldman Sachs & Co. LLC for Rosetta Stone, and legal counsel from Hogan Lovells US LLP for Rosetta Stone and Schulte Roth & Zabel LLP for Cambium.
Learn more about Cambium Learning Group and its family of brands at www.cambiumlearning.com.
