Learning Technologies Group PLC (LON:LTG) said it has agreed to acquire San Francisco-based performance management software provider Reflektive Inc for US$14.2mln (£10.4mln) in cash.
The digital learning group said Reflektive, which specialises in engagement and analytics tools used by corporate teams to boost productivity, will be incorporated into LTG’s PeopleFluent talent management portfolio and provide what the firm said will be cross and up-selling growth opportunities.
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Learning Technologies said that for its 2020 financial year Reflektive achieved revenue of around US$14mln, of which the vast majority was derived from recurring annual and multi-year contracts. While the group reported an underlying (EBITDA) loss of US$7mln in the same period, Learning Technologies said it expects Reflektive to become earnings accretive in the second half of 2021.
The acquisition is also expected to complete on January 29 and will be funded from Learning Technologies’ cash resources.
"I am delighted to announce our acquisition of Reflektive, which will join during this exciting time of resilient growth for LTG's Software and Platforms division. Reflektive takes a cutting-edge approach to performance management, matched with flagship tools that enable truly engaging continuous goal-setting within organisations”, LTG chief executive Jonathan Satchell said in a statement.
“This highly complementary acquisition will enhance the capabilities of PeopleFluent, bringing over 450 new corporate customers. Furthermore, it increases LTG's proportion of proforma recurring revenue to more than 80%”, he added.