Educational software publisher Riverdeep Inc. has acquired Broderbund LLC, which makes personal productivity software for the school and consumer markets, from Gores Technology Group for $57.2 million, the companies announced Aug. 26.
The deal gives Riverdeep the rights to the Broderbund name and all of its software titles, which include print and creativity programs already familiar to many schools, such as KidPix and Print Shop. The acquisition will be funded through a combination of cash and a $50 million debt line with Foothill Capital Corp., a subsidiary of Wells Fargo.
The move is the latest in a string of recent acquisitions by Riverdeep, which include Edmark, Teacher Universe, The Learning Company, and SmartStuff Software. The company’s purchases more than tripled its size between 2001 and 2002, according to market research firm Eduventures Inc.from $53 million to a reported $169 million. The addition of Broderbund ultimately will increase Riverdeep’s revenue to nearly $300 million, Eduventures added.
Besides bolstering Riverdeep’s school software offerings, the deal “propels Riverdeep into the entirely new realm of mainstream consumer publishing with the additions of such titles as American Greetings and Cosmopolitan,” said Eduventures’ Emily Trask.
The deal marks the culmination of a year-long, co-marketing relationship between Riverdeep and Broderbund, following Riverdeep’s acquisition of The Learning Company from Broderbund last year. “However, as this is Riverdeep’s largest acquisition, it is as yet unclear how successfully Riverdeep can incorporate an acquisition of this magnitude into its operations,” Trask said.