Learning Technologies Group PLC Acquisition (5043F)
March 10 2020 - 2:00AM
UK Regulatory
TIDMLTG
RNS Number : 5043F
Learning Technologies Group PLC
10 March 2020
10 March 2020
Learning Technologies Group plc
("LTG", the "Group")
(AIM: LTG)
Proposed Acquisition of Open LMS
- Provides LTG with solid foundation in the high-value open-source market
- Multiple routes to enhanced growth through LTG's extensive customer base
Learning Technologies Group plc, the provider of services and
technologies for digital learning and talent management, is pleased
to announce the proposed acquisition of the business and assets of
Open LMS from Blackboard Inc for cash consideration of $31.7million
(subject to some customary price adjustments), to be funded by the
Group's existing cash and bank facilities.
The proposed acquisition of Open LMS reinforces Learning
Technologies Group as an industry leader in learning software,
adding complementary expertise to the Group's existing proprietary
software solutions, through the addition of expertise in the
market's leading open-source Learning Management System (LMS),
Moodle. It will support LTG's strategic goal to achieve run-rate
revenues of GBP200 million and run-rate Adjusted EBIT of at least
GBP55 million by the end of 2021.
The Open LMS business will provide LTG with a solid foundation
in the high-value Moodle market. Customers across the LTG portfolio
will be able to benefit from the popular open-source Moodle LMS
delivered across a managed SaaS platform, to create personalised
learning programmes. The Moodle community brings together the
education market and corporate learning market, for the development
of skills to support the needs of organisations across the globe.
For corporate users, it enables businesses to offer a continuous
learning experience for their people wherever they are and at any
time.
Following completion, Open LMS will be run as a standalone brand
within LTG's portfolio of best-in-class businesses. Phill Miller,
Chief Learning and Innovation officer at Blackboard, will join LTG
as Managing Director, bringing significant experience and expertise
in the global Moodle market. LTG will support Open LMS through its
existing operational infrastructure and, under a partnership
arrangement, LTG will resell Blackboard's suite of products that
integrate with Moodle to meet the demands of current and future
customers.
Open LMS will be acquired by way of a combined asset carve-out
and entity acquisition from Blackboard. In the year ended 31
December 2019 the Open LMS business generated unaudited revenues of
c.$16 million. Approximately 70% of Open LMS's revenue is derived
from recurring subscription fees. The proposed acquisition is
expected to complete within 30 days.
Jonathan Satchell, Chief Executive of Learning Technologies
Group, said: "I am excited to expand LTG's capabilities through the
acquisition of Blackboard's market-leading Moodle expert, Open LMS.
The corporate learning market is showing increased interest in this
type of scaleable technology, and we will now have the capability
to meet customer demand. I am excited that Phill Miller has agreed
to join LTG to drive forward our investment in open-source and to
expand LTG's position in this important market segment."
Phill Miller, Chief Learning and Innovation Officer at
Blackboard, said: "I'm thrilled to be joining LTG and to have the
opportunity to deliver on the strong growth potential for Open LMS
as part of LTG's portfolio of best in breed technologies for
learning and talent management. We have built a highly compelling
product offering, and now have the opportunity to establish a clear
market leadership position in the popular Moodle market - enabling
businesses to focus on developing the skills required for the
modern workforce."
Andrew Brode, Chairman of Learning Technologies Group, said:
"The addition of Open LMS demonstrates LTG's unique position as a
consolidator in the market for learning and talent management
software and services. It follows our most recent acquisition,
BreezyHR, acquired in April 2019, which has enjoyed excellent
growth with revenues increasing by c.60% in FY19. We expect the
acquisition of Open LMS to be attractively earnings enhancing. The
benefits of our broad portfolio are recognised by LTG's corporate
customers, and this opens up an array of opportunities to greatly
enhance the revenue of the Open LMS business."
ENDS
Enquiries:
Learning Technologies Group plc
Jonathan Satchell, Chief Executive
Neil Elton, Chief Financial Officer +44 (0)20 7402 1554
Numis Securities Limited (NOMAD and Corporate Broker)
Stuart Skinner, Nick Westlake, Ben Stoop +44 (0)20 7260 1000
Goldman Sachs International (Joint Corporate Broker)
Bertie Whitehead, Adam Laikin +44 (0)20 7774 1000
FTI Consulting (Public Relations Adviser)
Rob Mindell, Jamie Ricketts, Chris Birt +44 (0)20 3727 1000
About LTG
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 and Asia-Pacific.
About Moodle
'Moodle', an acronym for "Modular Object-Oriented Dynamic
Learning Environment", is a free and open-source LMS used for
blended learning , distance education and other e-learning projects
in schools, universities, workplaces and other sectors. Moodle was
originally developed in 2002 and it is widely seen as the leading
global open-source LMS.
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END
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