Target Overview

The game and movement-based learning sector represents a rapidly growing market that is increasingly leveraging advanced technologies like augmented reality (AR), gamification, and interactive engagement tools to revolutionize training and educational methodologies. This sector's evolution has led to a notable shift in how organizations implement AI-driven learning models and immersive simulations, aiming to boost engagement and equip individuals with practical skills. Consequently, the rise in demand for experiential learning approaches has catalyzed investments and consolidation within the industry.

This report delves into M&A transaction trends, valuation metrics, and regional investment activities from Q1 2020 to Q4 2024, providing insights on how strategic acquisitions and capital deployment shape the sector. Key transactions analyzed include Kahoot!’s acquisition of Motimate, Go1’s acquisition of Coorpacademy, and Attensi’s venture funding round. Each is evaluated for its strategic rationale, valuation multiples, and overall market impact.

Industry Overview

The game and movement-based learning industry is distinguished by its integration of digital technologies and methodologies that enhance corporate training and education. As organizations seek to make training programs more engaging and effective, investments in gamified learning solutions have surged. The sector is marked by significant M&A activity driven by the desire for firms to acquire innovative technologies and expertise to elevate their offerings.

Geographically, the US leads the global investment landscape, accounting for a significant portion of capital—53%—but only 31% of the deal volume, indicating a preference for sizeable strategic acquisitions over smaller ones. The robust corporate training and workforce upskilling market in the US presents substantial investment opportunities, drawing interest from both venture capital and private equity. Conversely, emerging markets focus on earlier-stage investments, targeting companies with growth potential.

As investor interest expands, Australia and the UK present promising prospects within this sector as well. The Australian market prioritizes innovation in edtech, while the UK capitalizes on its expanding digital learning landscape. Together, these trends highlight a growing emphasis on scalable, technology-driven learning solutions tailored to diverse educational needs.

The transaction metrics reveal a compelling picture of the industry’s dynamics. EV/revenue multiples vary widely from 0x to 31x, while EV/EBITDA ratios can leap to as high as 469x. This indicates a clear investor preference for high-growth, digital-first initiatives over traditional, asset-heavy models.

Rationale Behind the Deal

The strategic rationale for the surge in M&A activity within the game and movement-based learning sector lies in the increasing demand for innovative, interactive training solutions. As organizations pivot towards adopting advanced engagement methodologies, firms that can offer scalable solutions are poised for success. By acquiring complementary technologies and platforms, companies enhance their competitive edge, market reach, and overall value proposition.

Investors are drawn to scalable, technology-focused solutions, such as AR-based training programs and AI-enhanced learning tools, which promise superior returns and minimized operational costs. This shift underscores the importance of adaptive learning environments that not only engage users but also offer recurring revenue streams, making the sector an attractive investment avenue.

Investor Information

This focus on high-value companies illustrates investor confidence in the long-term growth potential of interactive and movement-based learning models. With a substantial allocation of capital toward strategic acquisitions, investors are emphasizing the importance of technological advancement and platform integration to navigate the evolving landscape of corporate education and training.

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This analysis suggests that the recent trend in the game and movement-based learning sector represents a prudent investment opportunity. The increasing incorporation of AI, AR, and gamification technologies points to a significant shift in consumer expectations and training outcomes. As organizations recognize the value of engaging learning solutions, high-growth companies in the sector stand to benefit tremendously from targeted acquisitions and strategic partnerships.

For investors, capitalizing on scalable platforms that demonstrate substantial market demand and user engagement is crucial. Companies focusing on mobile-first, cloud-based technologies that enable widespread access and simplified training processes can expect increased valuations as the market consolidates. This strategic focus can present lucrative returns on investments driven by recurring revenues and loyal customer bases.

Moreover, the growing trend of combining M&A activity with venture funding signals a strong investor belief in the scalability of innovative learning models. As firms like Kahoot! and Go1 expand their offerings through purchases, we can expect continued market evolution alongside emerging technologies streamlining corporate training.

As such, the outlook remains favorable for both established and emerging players in the game and movement-based learning sector. Companies that can effectively tailor their offerings to meet the shifting demands of training and education are likely to secure strategic positioning and sustained growth within this thriving market.

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Go1

invested in

Coorpacademy

in 2022

in a Other VC deal

Disclosed details

Transaction Size: $7M

Enterprise Value: $27M

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