POELLATH advises Babbel founders on IPO of their language learning app
With a public offering and listing on the regulated market of the Frankfurt Stock Exchange (Prime Standard), Babbel seeks to raise gross proceeds of around EUR 180 million. In addition to offering new shares from a capital increase, the IPO will also offer shares from the holdings of existing shareholders.
Babbel was founded in Berlin in 2007 and has grown from the world’s first language learning app to a global market leader in this field. Most recently, Babbel generated record revenues, driven by the Corona pandemic. Its digital language learning offering includes self-study via app, currently in 15 languages, as well as virtual group courses with live tutors and a podcast. Babbel intends to use the IPO proceeds to increase the learning opportunities in its language learning app, as well as to drive its corporate (B2B) offering and further expansion.
The four Babbel founders hold around 45 percent of the shares in the company. In addition, various financial investors, including Kizoo, SEP, Reed Elsevier Ventures, Nokia Growth Partners and VC Fonds Berlin, hold stakes in the company.
POELLATH advises the four founders on all corporate, capital markets and tax law matters in connection with the planned IPO with the following Munich team:
- Dr. Eva Nase (partner, corporate and capital markets law)
- Gerald Herrmann (partner, tax)
- Stefanie Jahn (associate, corporate and capital markets law)
- Dr. Moritz Lehnert (associate, corporate and capital markets law)
Additional legal advisors on IPO-related matters include:
For Babbel: Skadden Arps Slate Meagher & Flom (Stephan Hutter, Caspar Schmelzer)
For the banks: Latham & Watkins (Oliver Seiler, David Rath)
For the financial investors: Noerr (Felix Blobel)
Further information can also be found here in the Juve article.