Rosetta Stone Inc. is an American education technology

software company A software company is a company whose primary products are various forms of software, software technology, distribution, and software product development. They make up the software industry. Types There are a number of different types of soft ...

that develops language, literacy and brain-fitness software. Best known for its language-learning products, in 2013, the company expanded beyond language into education-technology with its acquisitions of Livemocha, Lexia Learning, Fit Brains, and Tell Me More. In 2021, it became a subsidiary of IXL Learning.

History

Beginnings

According to the company, founder Allen Stoltzfus learned German through

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while living in Germany and found it relatively easy. In the 1980s, Stoltzfus began learning Russian in a classroom setting, but found the classroom setting much more difficult. He wanted to simulate the German experience, and he decided to use computer technology to create a similar learning experience. He enlisted the aid of his brother-in-law, John Fairfield, who held a PhD in

computer science Computer science is the study of computation, automation, and information. Computer science spans theoretical disciplines (such as algorithms, theory of computation, information theory, and automation) to practical disciplines (includin ...

. By 1992, CD-ROM technology made the project possible. Allen and John, along with Eugene Stoltzfus (Allen's brother), formed a company known as Fairfield Language Technologies in Harrisonburg, Virginia. They hired Greg Keim and Michael Silverman along with other significant team members. They released their software product under the title The Rosetta Stone.

2000s and IPO

In 2003, the company announced the hiring of Tom Adams, a businessman with international experience, as President and CEO. In 2004, Rosetta Stone Ltd. established its Endangered Language Program to contract with

endangered language An endangered language or moribund language is a language that is at risk of disappearing as its speakers die out or shift to speaking other languages. Language loss occurs when the language has no more native speakers and becomes a " dead lang ...

communities interested in custom

software development Software development is the process of conceiving, specifying, designing, programming, documenting, testing, and bug fixing involved in creating and maintaining applications, frameworks, or other software components. Software development inv ...

to support

language revitalization Language revitalization, also referred to as language revival or reversing language shift, is an attempt to halt or reverse the decline of a language or to revive an extinct one. Those involved can include linguists, cultural or community groups, o ...

efforts. In 2006, the company changed names to Rosetta Stone, Ltd., and converted from an S corporation to a C corporation. Ownership transferred to investment firms

ABS Capital Partners ABS Capital Partners is an American private equity firm focused on investments in software and tech-enabled services businesses across a range of industries, including FinTech, Healthcare, EdTech, eCommerce, cybersecurity, and Smart Cities. F ...

and Norwest Equity Partners. On September 23, 2008, Rosetta Stone Inc. filed an

Initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...

with the

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. On April 15, 2009, the company was listed as the Rosetta Stone on the New York Stock Exchange, raising $112 million in its

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...

of stock shares.CNBC Article Covering the IPO, retrieved 4/17/09
/ref> In its first full day of trading on the

New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed ...

, the stock gained 39% from its opening price. Stock Coverage of Rosetta Stone at Wikinvest After a strong opening, however, the stock stumbled amid reports of weaknesses in Rosetta Stone's US business, resulting in the cancellation of a second offering, and a disappointing year end price just 5 cents off its opening price. The stock trades under ticker symbol RST. As of December 2015, the stock was at approximately $29.2 (

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) per share.

2010s

In 2013, it acquired four companies—Vivity Labs Inc (creators of the Fit Brains Trainer), Livemocha,

Tell Me More ''Tell Me More'' was a National Public Radio interview show that was hosted by journalist Michel Martin. ''Tell Me More'' was first introduced online in December 2006 through an "open piloting" program called "Rough Cuts." Martin and the show' ...

, and Lexia Learning. On September 17, 2013, Rosetta Stone announced the launch of a new Kids Division. In November 2014, it debuted its first kids reading program for consumers, Rosetta Stone Kids Reading. Since 2016, the company's president and CEO has been John Hass. Rosetta Stone is transitioning to a cloud-based business model that goes beyond language learning and deeper into education technology.

Acquisition by Cambium

On August 31, 2020, Rosetta Stone announced that they had entered an agreement to be acquired by Cambium Learning Group for $792 million.

Acquisition by IXL Learning

On March 17, 2021, Rosetta Stone was acquired by IXL Learning from Cambium Learning Group.

Offices

Corporate headquarters Corporate headquarters is the part of a corporate structure that deals with important tasks such as strategic planning, corporate communications, taxes, law, books of record, marketing, finance, human resources, and information technology. Corpo ...

are in

Arlington, Virginia Arlington County is a county in the Commonwealth of Virginia. The county is situated in Northern Virginia on the southwestern bank of the Potomac River directly across from the District of Columbia, of which it was once a part. The county i ...

. *There are also offices in

Harrisonburg, Virginia Harrisonburg is an independent city in the Shenandoah Valley region of the Commonwealth of Virginia in the United States. It is also the county seat of the surrounding Rockingham County, although the two are separate jurisdictions. At the 2 ...

; Boulder, Colorado;

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;

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;

Concord, Massachusetts Concord () is a town in Middlesex County, Massachusetts, in the United States. At the 2020 census, the town population was 18,491. The United States Census Bureau considers Concord part of Greater Boston. The town center is near where the confl ...

;

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; and

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South Korea South Korea, officially the Republic of Korea (ROK), is a country in East Asia, constituting the southern part of the Korea, Korean Peninsula and sharing a Korean Demilitarized Zone, land border with North Korea. Its western border is formed ...

References

External links

Rosetta Stone website

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Hoover's D&B Hoovers was founded by Gary Hoover and Patrick Spain in 1990Solomon, Steve.The Dynamic Duo" '' Inc.''. October 15, 1997. Retrieved on April 7, 2014. as an American business research company that provided information on companies and indust ...

Rosetta Stone company profile
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"Rosetta Stone Inc. IPO"
* {{DEFAULTSORT:Rosetta Stone (Company) Companies based in Arlington County, Virginia Companies formerly listed on the New York Stock Exchange Software companies based in Virginia Educational software companies Private equity portfolio companies Education companies established in 1992 Software companies established in 1992 1992 establishments in Virginia 2008 initial public offerings Software companies of the United States 2020 mergers and acquisitions 2021 mergers and acquisitions