Rosetta Stone to Buy Tell Me More

Arlington, Va.-based Rosetta Stone (NYSE: RST  ) , the foreign language learning company, expanded its business a bit farther abroad on Wednesday, announcing plans to acquire France's Tell Me More S.A.

Valued at $28 million including assumed debt, the deal will have Rosetta taking over Tell Me More at a price-to-sales ratio very close to that of Rosetta's own shares -- about 1.1 times. It will also significantly bolster Rosetta's position in the corporate and higher education spheres. According to Rosetta, the addition of Tell Me More's $25 million revenue stream will push its own enterprise and education business past the $100 million annual revenue mark.

Explaining the deal, Rosetta CEO Steve Swad called Tell Me More "an exceptional fit for Rosetta Stone" that will "significantly" expand the company's presence in Europe, and also hand Rosetta "an established operation in China, where we are not present today."

Rosetta expects to close this acquisition in January 2014.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2762040, ~/Articles/ArticleHandler.aspx, 4/19/2014 2:13:22 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement