Learning Technologies Group PLC (AIM:LTG, OTC:LTTHF) has signed a definitive agreement to sell its VectorVMS business to Keensight subsidiary PIXID Group for US$50 million in cash.
VectorVMS is a vendor management platform for contingent labour [freelance/contractor] with operations predominantly in North America and also in the UK.
LTG acquired the business as part of its US $150 million PeopleFluent acquisition in 2018, with Vector subsequently separated into an independent business and brand later that year.
For the full year ended 31 December 2023, Vector generated revenue and underlying profits [Adjusted EBIT] of US$11.4 million and US$7.1 million respectively.
“The sale of Vector is part of LTG's announced strategy to manage the portfolio actively, sharpening our focus on learning and talent development,” LTG said in a statement.
“The sale of Vector follows the completed disposals of Lorien Engineering Solutions and TTI in 2023,” it added.
How to utilise the proceeds from the Vector divestiture is under consideration and an update to the market will be provided in due course, said the statement,
The transaction is expected to close in July 2024.