Business

Rosetta Stone to buy Lexia Learning of Concord for $22.5 million

Photo taken from Lexia’s website.
Photo taken from Lexia’s website.

Rosetta Stone Inc., a Virginia company known for its language-learning products, said Thursday that it has agreed to buy Lexia Learning Systems Inc. of Concord for $22.5 million in cash.

Lexia Learning’s English reading products are used in more than 14,000 schools and by more than one million students online.

“The transaction marks Rosetta Stone`s first extension beyond language learning and takes the company deeper into the EdTech industry,” Rosetta Stone said in a press release. “... By adding reading technology to its product portfolio, Rosetta Stone sharpens its focus on kids.”

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The release included a statement from Nick Gaehde, president and chief executive of Lexia.

“Rosetta Stone is an outstanding partner to help Lexia carry its long-standing mission to the next level,” Gaehde said. “We share a commitment to improving and personalizing learning through technology, and by joining forces, we believe we can make a profound impact on literacy. Rosetta Stone`s resources and global organization will enable Lexia to reach more educators and help more students than ever before.”

Gaehde will remain president of Lexia, reporting to Steve Swad, CEO of Rosetta Stone, and Lexia will stay in Concord, a Rosetta Stone spokesman said in an e-mail.

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