Learning Technologies Group Regulatory News (LTG)

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:

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.