Learning Technologies Group PLC (LON:LTG) has raised just under £82mln through a share placing to take advantage of what it said were “numerous attractive acquisition opportunities” arising from the disruption caused by the coronavirus pandemic.
The digital learning specialist said the placing was for around 64.4mln new shares at a price of 127p each, a 7.6% discount to its closing price on Thursday of 137.50p, and raised a total of £81.8mln.
Announcing the fundraising plans after Thursday’s close, Learning Technologies said current macroeconomic conditions had presented opportunities to “accelerate future growth and gain further share” of the corporate learning market.
The firm said any acquisition opportunities would require “readily available capital” to deploy for fast execution, adding that it anticipated these purchases would be executed over the next nine to 12 months.
Learning Technologies said it was specifically targeting “highly adjacent acquisitions” in the Content & Services and Software & Platforms segments to “broadly maintain the current balance of the business”, adding that the placing and any acquisitions will underpin its new strategic goals of around £230mln in revenues and adjusted earnings (EBIT) of £66mln on a run-rate basis by the end of 2022.
The company also said that despite the coronavirus pandemic its business “continues to perform well and in with management expectations”, although it expected that new business wins will be impacted and payment periods extended as a result of the outbreak.
The company's shares were 5.8% lower at 129.5p in early trading on Friday.
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