Learning Technologies Group PLC (LON:LTG) is to acquire Open LMS, a big name in the world of Moodle, an open-source learning management system (LMS).
Learning Technologies (LTG) is to pay US$31.7mln in cash to acquire Open LMS from Blackboard Inc. The acquisition will be funded from the group’s existing cash and bank facilities.
The acquisition will add complementary expertise to LTG’s existing proprietary software solutions and will support its strategic goal of achieving run-rate revenues of £200mln and run-rate adjusted earnings before interest and tax of at least £55mln by the end of 2021.
In 2019, Open LMS generated revenues of around US$16mln, of which around 70% was derived from recurring subscription fees.
Customers across the LTG portfolio will be able to benefit from the popular open-source Moodle LMS delivered across a managed software as a service platform, to create personalised learning programmes.
Open LMS will continue to operate as a stand-alone brand within LTG’s portfolio. LTG will resell Blackboard’s suite of products that integrate with Moodle.
Jonathan Satchell, chief executive of Learning Technologies Group, described Open LMS as the “market-leading Moodle expert”.
“The corporate learning market is showing increased interest in this type of scaleable technology, and we will now have the capability to meet customer demand,” Satchell said.
Andrew Brode, the chairman of LTG, said the board expects the acquisition of Open LMS will be “attractively earnings enhancing”.