Learning Technologies Group Share News (LTG)

Learning Technologies Group (LTG) said on Tuesday that it is to purchase learning solutions firm LINE as part of its 'buy and build' strategy, in its first major acquisition since listing on AIM in November 2013.The £9m acquisition is expected to create the UK market leader in the e-learning custom content market, which LTG hopes will "give access to high-value strategic contracts". LTG said that the combined businesses provide it with an "attractive platform to make further acquisitions"."This transaction will increase our capability and geographic reach to meet market demand," said Chief Executive Jonathan Satchell. "LTG's subsidiary Epic, and LINE, have strong complementary services and products and will combine leading teams in the market. These solid credentials in learning technologies will provide a platform for further growth and market consolidation," he said.The new business will be paid for by £5.1m in cash and £3.9m in new LTG shares. The cash element will be funded by the proceeds from a placing of 50m shares, raising £8m at 16p per share, while the remainder will be used to finance future acquisitions, to further the group's organic growth strategy, and for general corporate purposes.The news came alongside LTG's annual results which revealed that revenues grew 9% to £7.56m in 2013, while adjusted earnings before interest, tax, depreciation and amortisation jumped 42% to £1.45m.LTG shares were trading 8.4% higher at 20.33p on Tuesday.BC