Learning Technologies Group PLC (LON:LTG) announced it agreed to acquire learning and talent development software provider getBridge for US$50mln (£36mln) using existing cash resources.
The digital learning specialist said Bridge is a learning, performance and skills development platform for mid-enterprise organisations, headquartered in the US with operations in the UK and Hungary.
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Bridge provides a learning management system in addition to performance, engagement and skills development products, on a single, easy-to-use, SaaS-based platform.
The acquisition of Bridge from Instructure Inc significantly extends LTG's mid-enterprise learning and talent offering, the AIM-listed firm said, as it is complementary to PeopleFluent, which serves the large enterprise market, and BreezyHR, which serves the small and medium-sized business market.
The acquisition is strategically important because it enables LTG to provide a holistic learning and talent development offering to meet the needs of small, mid-size and large enterprises, three distinct groups with varying requirements, the company said.
The combination and integration of Bridge with LTG's other portfolio offerings, including the recently acquired Reflektive engagement and analytics platform, will create opportunities for cross-sell and upsell-led growth within the group, it added.
Bridge, which has over 800 customers, achieved unaudited revenue of US$20mln (£14mln) financial year 2020, of which more than 90% was derived from recurring annual and multi-year contracts, and an underlying loss of US$1mln (£0.7mln).
With the operational synergies that will be created with the rest of the Group, LTG said it expects Bridge to become earnings accretive from the second half 2021 and to align with its typical software division margins by early 2022.
Bridge represents LTG's seventh acquisition since the £81.8mln placing in May 2020, bringing the total consideration spent to around £80mln, excluding performance-related earn outs.
In line with LTG's strategic target to deliver run rate revenue of £230mln and adjusted underlying earnings (EBIT) of £66mln by the end of 2022, the group said it will continue to pursue acquisition targets financed through its own cash resources and modest levels of debt.