KKR, the huge private equity firm once known as Kravis Kohlberg Roberts & Co., has bought OverDrive from Rakuten, the Japanese online retailer that also owns Kobo. Rakuten purchased OverDrive in 2015 for $410 million. In its announcement of the sale to KKR, Rakuten said that it would record a profit of about $368.1 million from the sale in the first quarter. The transaction is expected to be completed by the end of the month.
OverDrive is the main digital reading platform for some 43,000 libraries and schools around the world, offering e-books, audiobooks, magazines and other digital media. CEO Steve Potash, who founded OverDrive in 1986, commented: "OverDrive is very excited to work with the world-class KKR team due to their track record of accelerating digital media and technology businesses in global markets. This provides access to an extraordinary network of capabilities to empower our institutional partners for the benefit of the communities and readers they serve."
KKR owns related companies, particularly RBmedia (formerly known as Recorded Books), Epic Games, AppLovin, Pandora, WebMD, UFC, Leonine, BMG Rights Management, Next Issue Media, and Nielsen.
Ted Oberwager, managing director at KKR, commented: "At a time of accelerating digital adoption throughout libraries and schools, OverDrive offers its growing user base a best-in-class technology platform and reading experience--something we're excited to be a part of. We look forward to working with the company to further grow its portfolio and network, and continue to build on its status as a recognized leader in the digital content space."