Arlington, VA, March 14, 2017 (GLOBE NEWSWIRE) -- Rosetta Stone Inc. (NYSE: RST), a world leader in digital language learning, and SOURCENEXT (TYO: 4344), Japan’s market-leading software publisher and distributor, today announced a strategic partnership through which SOURCENEXT has been granted a perpetual, exclusive license to sell and develop language and education products and services in Japan using the Rosetta Stone brand and trademark. As part of the agreement, Rosetta Stone will have first rights to license products developed by SOURCENEXT under the Rosetta Stone brand and trademark for resale in territories outside of Japan.
“We have developed a strong relationship with SOURCENEXT over the last year and I am confident they bring the technical and local marketing expertise to best serve the Japanese language and education markets,” said Rosetta Stone’s President and CEO John Hass. “I am also excited by the opportunities created by SOURCENEXT’s future product development efforts, both for their customers in Japan, and appropriate audiences we could bring products to elsewhere in the world.”
Rosetta Stone entered into a commercial sales relationship with SOURCENEXT in June, 2016, demonstrating the need for language learning in Japan. Led by founder and CEO Noriyuki Matsuda, SOURCENEXT has partnered with various global companies including Dropbox, Evernote, Bitdefender, and Magix to adapt and bring a broad range of world-class products to the Japanese marketplace, with a full-service program to drive ongoing profitability – including UI localization, domestic customer support, merchandising, marketing, and more.
“As a pioneer and global leader in language learning, students, world travelers, business users, and consumers, alike, from around the globe all recognize the Rosetta Stone brand in an instant. We’re excited about the opportunity to exclusively represent and expand the Rosetta Stone brand in Japan,” said Noriyuki Matsuda, founder and CEO of SOURCENEXT. “Through this collaboration, we will leverage our 20 years of expertise to deliver new language learning and education solutions that are customized and compelling for Japanese consumers and enterprises.”
In return for granting the perpetual, exclusive license to the Rosetta Stone brand and trademarks in Japan and the transfer of certain technologies, SOURCENEXT will pay Rosetta Stone $13.5 million, before certain adjustments, with an additional $6 million to be paid over the next ten years.
Rosetta Stone’s globally recognized products have helped millions of people learn a new language at home, in schools and in the workplace for more than 25 years. The Company pioneered the use of technology to accelerate language learning and is committed to the continued innovation of its products.
For more information on Rosetta Stone, visit www.rosettastone.com and the investor relations section of our website. More information about SOURCENEXT can be found on its website at www.sourcenext.com/us/.
Rosetta Stone’s Caution on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by non-historical statements and often include words such as "outlook," "potential," "believes," "expects," "anticipates," "estimates," "intends," "plans," "seeks" or words of similar meaning, or future-looking or conditional verbs, such as "will," "should," "could," "may," "might, " "aims," "intends," or "projects." A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances. In addition, forward-looking statements are based on Rosetta Stone’s current assumptions, expectations and beliefs and are subject to certain risks and uncertainties that could cause actual results to differ materially from our present expectations or projections. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. These factors should be read in conjunction with the other cautionary statements, risks and uncertainties that are more fully described in the Rosetta Stone’s filings with the U.S. Securities and Exchange Commission (SEC), including those described under the section entitled “Risk Factors” in the Company’s most recent quarterly Form 10-Q filings and Annual Report on Form 10-K for the year ended December 31, 2015, as such factors may be updated from time to time.
About Rosetta Stone
Rosetta Stone Inc. (NYSE: RST) is dedicated to changing people’s lives through the power of language and literacy education. The company’s innovative digital solutions drive positive learning outcomes for the inspired learner at home or in schools and workplaces around the world.
Founded in 1992, Rosetta Stone’s language division uses cloud-based solutions to help all types of learners read, write, and speak more than 30 languages. Lexia Learning, Rosetta Stone's literacy education division, was founded more than 30 years ago and is a leader in the literacy education space. Today, Lexia helps students build fundamental reading skills through its rigorously researched, independently evaluated, and widely respected instruction and assessment programs.
For more information, visit www.rosettastone.com. “Rosetta Stone” is a registered trademark or trademark of Rosetta Stone Ltd. in the United States and other countries.
About SOURCENEXT
SOURCENEXT (TYO:4344), Japan’s publicly traded, market-leading software publisher and distributor, which not only plans and develops their own products, also specializes in helping U.S. and other foreign-based software companies launch their desktop and mobile apps in the Japanese market and grow market share for sustained profitability. With 20 years of software publishing experience in Japan, SOURCENEXT offers a unique, full-service Japanese market penetration program for software providers. SOURCENEXT has helped companies like Evernote, Dropbox, Bitdefender, Magix, and more launch successful desktop software tools and mobile apps in Japan with its deep market experience, brand trust, top retailer relationships, and extensive distribution network. For more, visit www.sourcenext.com/us/.