Expands D2L's course creation product suite and
addressable market
TORONTO, July 9, 2024
/CNW/ - D2L Inc. (TSX: DTOL) ("D2L" or the "Company"), a
leading global learning technology company, today announced that it
has acquired H5P Group AS ("H5P Group"), a leading provider of
interactive content creation software used by educators and
organizations globally to increase engagement and boost learning by
creating and enriching course materials. This transaction aligns
with D2L's commitment to expanding its learning platform with a
focus on technologies that enhance the learning moment and improve
learning outcomes.
H5P Group was founded in 2014 and is the creator of H5P, the
cutting-edge software platform for creating rich learning content
interactives. The company's innovative suite of over 60 interactive
content tools in areas such as live-engagement activities,
formative assessment, and interactive learning, along with its
AI-powered Smart Import Tool, help educators access enriched course
materials to boost learning outcomes, driving innovation and
engagement for millions of individuals in more than 50 countries.
H5P Group has approximately 30 employees, primarily based in
Norway.
"We believe strongly in the power of easy-to-use creation tools
in online learning to improve engagement and ultimately achieve
better learning outcomes," said John
Baker, D2L's founder and CEO. "These capabilities are
increasingly in demand among our customers and prospects, and with
this transaction we're adding H5P's best-in-class software to
complement the Brightspace learning platform and our Creator+
product. In addition to great technology, H5P has built a growing
base of recurring revenue in an efficient and sustainable way,
aligning with our balanced growth and profitability operating
model. Together, we believe we can accelerate the development and
time-to-market of these products and enhanced creator features,
unlocking additional market opportunity and establishing leadership
in the growing interactive learning space. This transaction aligns
with our strategy to expand our learning platform by developing and
acquiring new products that enhance the learning moment and address
the evolving needs of our customers."
Mr. Baker added: "We're thrilled to welcome the team at H5P and
its vibrant user community. We look forward to working together to
support millions of users and partners with powerful, interactive
learning experiences."
"I am extremely excited to join D2L and to accelerate the vision
of H5P. It was of great importance to us to become part of an
organization with the same commitment to empowering users to create
and share richer learning experiences. Together, we will help more
educators around the world create better interactive content
faster, leading to stronger learning outcomes," said H5P Group CEO
and founder Svein-Tore Griff With.
Building on its 25 years of learning transformation, D2L is
committed to investing in and contributing to the H5P community as
it helps more educators deliver engaging and interactive learning
experiences, both to D2L Brightspace users and beyond. Through its
dedication to the learning moment, D2L is committed to supporting
the H5P open-source community as it continues to drive innovative
and quality interactives.
Under the terms of the share purchase agreement, D2L acquired
H5P for a purchase price of US$25.6
million at closing, with potential earnout payments of
up to US$7.4 million based on the
achievement of certain performance milestones.
Forward-Looking Information
This press release includes statements containing
"forward-looking information" within the meaning of applicable
securities laws. Statements containing forward-looking information
are not historical facts, but instead represent management's
expectations, estimates and projections regarding future events or
circumstances. This forward-looking information relates to the
Company's future financial outlook and anticipated events or
results and includes, but is not limited to, information regarding
the anticipated impacts resulting from D2L's acquisition of the H5P
Group and the potential for and size of any earnout payments
related to the acquisition. Forward-looking information is based on
certain assumptions, expectations and projections, and analyses
made by the Company in light of management's experience and
perception of historical trends, current conditions and expected
future developments and other factors it believes are appropriate,
including the following: the Company's ability to win business from
new customers and expand business from existing customers; the
timing of new customer wins and expansion decisions by existing
customers; the Company's ability to generate revenue and expand its
business while controlling costs and expenses; the Company's
ability to manage growth effectively; the Company's ability to hire
and retain personnel effectively; the effects of foreign currency
exchange rate fluctuations on our operations; the ability to seek
out, enter into and successfully integrate acquisitions; business
and industry trends, including the success of current and future
development initiatives; positive social development and attitudes
toward the pursuit of higher education; the Company's ability to
maintain positive relationships with its customer base and
strategic partners; the Company's ability to adapt and develop
solutions that keep pace with continuing changes in technology,
education and customer needs; the ability to patent new
technologies and protect intellectual property rights; the
Company's ability to comply with security, cybersecurity and
accessibility laws, regulations and standards; the assumptions
underlying the judgments and estimates impacting on financial
statements; and the Company's ability to retain key personnel; the
factors and assumptions discussed under the "Financial Outlook"
section of the Company's Management's Discussion and Analysis
("MD&A") for the three and 12 months ended January 31, 2024; and that the list of factors
referenced in the following paragraph, collectively, do not have a
material impact on the Company. Although the Company believes that
the assumptions underlying such forward-looking information were
reasonable when made, they are inherently uncertain and are subject
to significant risks and uncertainties and may prove to be
incorrect. The Company cautions investors that forward-looking
information is not a guarantee of the future and that actual
results may differ materially from those made in or suggested by
the forward-looking information contained in this press release.
Whether actual results, performance or achievements will conform to
the Company's expectations and predictions is subject to a number
of known and unknown risks, uncertainties and other factors,
including but not limited to the risks identified at "Summary of
Factors Affecting Our Performance" of the Company's MD&A for
the three and 12 months ended January 31,
2024, or in the "Risk Factors" section of the Company's most
recently filed Annual Information Form, in each case filed under
the Company's profile on SEDAR+ at www.sedarplus.com. If any of
these risks or uncertainties materialize, or if assumptions
underlying the forward-looking information prove incorrect, actual
results might vary materially from those anticipated in the
forward-looking information. Given these risks and uncertainties,
investors are cautioned not to place undue reliance on
forward-looking information, including any financial outlook. Any
forward-looking information that is contained in this press release
speaks only as of the date of such statement, and the Company
undertakes no obligation to update any forward-looking information
or to publicly announce the results of any revisions to any of
those statements to reflect future events or developments, except
as required by applicable securities laws.
About D2L Inc. (TSX: DTOL)
D2L is transforming the way the world learns—helping learners of
all ages achieve more than they dreamed possible. Working closely
with customers all over the world, D2L is supporting millions of
people learning online and in person. Our global workforce is
dedicated to making the best learning products to leave the world
better than they found it. Learn more at www.D2L.com.
About H5P
H5P Group works to improve the world of interactive content by
leading the community-driven H5P project. H5P is a cutting-edge
platform for creating and distributing rich HTML5 content that
helps educators, marketers, and businesses develop interactive
content by offering a user-friendly, web-based interface that
empowers users to create, share, and reuse engaging interactive
content effortlessly. H5P is a plugin for existing publishing
systems and is used by hundreds of thousands of universities,
enterprises, school districts, schools, and other organizations
around the world.
D2L Investor Relations Contact
Craig Armitage
Investor Relations
IR@D2L.com
(416) 347-8954
D2L Media Contact
Colin Horgan
Executive Communications Director, D2L Corporation
Colin.horgan@d2l.com
SOURCE D2L Inc.
