REG - Learning Tech Gp PLC - Acquisition of Bridge for $50m

Learning TechnologiesAnnouncement

15/02/2021 07:00

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RNS Number : 0714P  Learning Technologies Group PLC  15 February 2021

15 February 2021

 

Learning Technologies Group plc

("LTG", the "Group")

(AIM: LTG)

 

Acquisition of Bridge for $50m

 

-     Significant extension of LTG's mid-enterprise learning and talent
software offering

 

Learning Technologies Group plc, the provider of services and technologies for
digital learning and talent management, has agreed to acquire getBridge LLC
and related assets ("Bridge"), a leading learning and talent development
software provider, from Instructure Inc for a cash consideration of $50.0
million (c.£36.1 million).

 

Bridge is a learning, performance and skills development platform for
mid-enterprise organisations, headquartered in the US with operations in the
UK and Hungary. Bridge provides a learning management system in addition to
performance, engagement and skills development products, on a single,
easy-to-use, SaaS-based platform.

 

The acquisition of Bridge significantly extends LTG's mid-enterprise learning
and talent offering.  Bridge is highly complementary to PeopleFluent, which
serves the large enterprise market, and BreezyHR, which serves the small and
medium-sized business market.  The acquisition is strategically important
because it enables LTG to provide a holistic learning and talent development
offering to meet the needs of small, mid-size and large enterprises, three
distinct groups with varying requirements. The combination and integration of
Bridge with LTG's other portfolio offerings, including the recently acquired
Reflektive engagement and analytics platform, will create opportunities for
cross-sell and upsell-led growth within the Group.

 

Bridge achieved unaudited revenue of c.$21.0 million in FY20, of which more
than 90% was derived from recurring annual and multi-year contracts. It
generated an EBITDA loss of c.$1.3 million in the same period.  With the
operational synergies that will be created with the rest of the Group, LTG
expects Bridge to become earnings accretive from H2 2021 and to align with its
typical software division margins by early 2022.  Bridge has more than 800
customers which combined with LTG's global customer base represents a
compelling cross-selling opportunity.

 

The acquisition, which is expected to complete on 26 February 2021, is to be
funded from LTG's existing cash resources.  Consideration of $50.0 million
(c.£36.1 million) at completion will be subject to customary price
adjustments.

 

Bridge represents LTG's seventh acquisition since the £81.8m placing in May
2020, bringing the total consideration spent to c.£80.0 million (excluding
performance-related earn outs) in that time.  In line with LTG's strategic
target to deliver run rate revenue of c.£230 million and Adjusted EBIT of
c.£66.0 million by the end of 2022, the Board will continue to pursue high
quality acquisition targets financed through its own cash resources and modest
levels of debt.

 

Jonathan Satchell, Chief Executive of LTG, said:

 

"I am delighted to welcome Bridge to LTG.  Bridge adds real strength and
depth to our learning and talent offering for the mid-enterprise market, which
has attractive structural dynamics.  Since the onset of the global pandemic,
we have continued to execute on our growth strategy, adapted to new
environments and pursued a pipeline of acquisition targets that create
long-term value for our stakeholders. With Bridge, we are building on our
market-leading position in the strategically important area of digital talent
development."

 

ENDS

 

 Enquiries:

 

 Learning Technologies Group plc                        +44 (0)20 7832 3440

 Jonathan Satchell, Chief Executive

 Neil Elton, Chief Financial Officer

 Numis Securities Limited (NOMAD and Corporate Broker)  +44 (0)20 7260 1000

 Stuart Skinner, Nick Westlake, Ben Stoop

 Goldman Sachs International (Joint Corporate Broker)   +44 (0)20 7774 1000

 Bertie Whitehead, Adam Laikin

 FTI Consulting (Public Relations Adviser)              +44 (0)20 3727 1000

 Rob Mindell, Jamie Ricketts, Chris Birt

 

 

About LTG

 

Learning Technologies Group plc (LTG) is a leader in the growing workplace
digital learning and talent management market. The Group offers end-to-end
learning and talent solutions ranging from strategic consultancy, through a
range of content and platform solutions to analytical insights that enable
corporate and government clients to close the gap between current and future
workforce capability.

 

LTG is listed on the London Stock Exchange's Alternative Investment Market
(LTG.L) and headquartered in London. The Group has offices in Europe, North
America, South America and Asia-Pacific.

 

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