24th Apr 2018 18:02
LONDON (Alliance News) - Learning Technologies Group PLC said Tuesday that it has entered into a conditional agreement to acquire PeopleFluent Holdings Corp for GBP107 and will raise about GBP80 million through a placing to fund the acquisition.
It will also finance part of the acquisition with up to GBP35 million in incremental debt financing.
The e-learning service provider said that the acquisition is conditional upon the completion of the placing, however, the placing is not conditional upon the completion of the acquisition. It said if the acquisition does not go ahead it will keep the proceeds raised and use them for other "potential investment opportunities".
Learning Technologies has entered into an agreement for the entire issued and outstanding shares of capital stock of PeopleFluent from Beford Funding I L.P and Bedford Holdings GP LLC through a reverse subsidiary merger.
The company said the acquisition will be "immediately and significantly earnings enhancing in 2018".
PeopleFluent, a provider of cloud based integrated recruiting, talent management, and compensation management solutions, posted about GBP82.8 million revenue and about GBP9.2 million adjusted earnings before income and taxation in 2017.
The addition of PeopleFluent to Learning Technologies would see its combined revenue to about GBP135 million, with its platform division representing 77% of revenues. Its recurring revenue would increase 68% from 39%.
Learning Technologies said it would complete the review and integration process within 100 days if the acquisition is successful. And would target an EBIT margin for PeopleFluent in the financial yaer 2019 of 20%.
CEO Jonathan Satchell said: "I am delighted to announce the proposed acquisition of PeopleFluent, a leading talent management platform that will be transformative for our US presence and brings us new and complementary capabilities. Learning and talent are closely aligned and integrated talent and learning solutions will become vital as the pressure increases on corporates to attract, develop and retain people."
"This acquisition is fully aligned with our stated strategy from a capabilities, sector, geographic and financial profile perspective. PeopleFluent brings a large installed base of customers and significantly expands our international footprint with its US presence. We believe the financial effects of the acquisition are highly compelling."
Shares in Learning Technologies closed up 2.6% Tuesday at 102.00 pence each.
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