Learning Technologies Group PLC (AIM:LTG, OTC:LTTHF) (LTG) said its Lorien Engineering Solutions subsidiary is set to be acquired by NIRAS Group in a deal valued at US$21.4 million on a cash and debt-free basis.
The acquisition will see Lorien's management team remain in their leadership roles under the new ownership.
This sale is part of LTG's strategy of exiting non-core areas. The proceeds will be used to reduce debt and deployed in sectors of its business that align closely with its primary focus on digital learning and talent management, as well as helping finance potential acquisitions.
Additionally, LTG has completed the divestiture of the external staffing business of TTi Global for around US$800,000 in cash.
"We are pleased that Lorien has found an excellent home in NIRAS which has the strategy and team to develop Lorien's offering," said chief executive Jonathan Satchell.
"Alongside the carve-out of contracts from TTi, these transactions are further important steps in purifying GP Strategies' focus on its core mission of corporate learning and talent development solutions."
The shares were up just under 1% in mid-afternoon trading at 79.95p. Broker Peel Hunt, which rates the stock 'buy', reckons LTG is worth 110p.
It said it the transactions will likely dilute earnings per share by 3-4% this financial year, adding: "These transactions align with LTG’s strategy to refine GP Strategies’ focus on corporate learning and talent development solutions."
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