Learning Technologies PLC (LON:LTG) has made its first significant move into the US with the acquisition of digital human resources group PeopleFluent for US$150mln.
A placing at 98p, a 4% discount to last night’s close, raised £85mln to fund the deal, the company said in a statement.
Chairman Andrew Brode and two other directors subscribed £1.9mln in the fundraise, which was closed within hours of being announced.
Brode said: “I am excited by the potential of an enlarged LTG, incorporating PeopleFluent - we will now be a business with estimated £135m revenue and a strong platform for future growth. This is a transformational moment for LTG.”
E-learning specialist Learnings Technologies has more than doubled in value over the past 12 months as previous acquisitions have started to contribute strongly.
PeopleFluent works for 50 of Fortune’s list of top 100 US companies and generated sales of £83mln and underlying profits [EBIT] of £9.2mln in 2017.
Recurring revenues at the enlarged group would also rise to 68% of the total, with group underlying profits of £23.3mln.
The deal is expected to be completed this month and will add immediately to group earnings, said LTG.
Jonathan Satchell, LTG’s chief executive, added: “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."
At last night’s close of 102p, Learning Tech is valued at £580mln.