Arlington, Va.-based Rosetta Stone (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.
