Learning Technologies Group PLC Acquisition of Breezy (4150W)
April 17 2019 - 2:00AM
UK Regulatory
TIDMLTG
RNS Number : 4150W
Learning Technologies Group PLC
17 April 2019
17 April 2019
Learning Technologies Group plc
("LTG", the "Group")
(AIM: LTG)
Acquisition of Breezy HR
US based acquisition brings strong organic growth potential and
recurring revenue
Expands the Group's talent acquisition offer across multiple
markets
Learning Technologies Group plc, the leading integrated digital
learning and talent management services and technologies provider,
announces the acquisition of Breezy HR ("Breezy") for initial cash
consideration of USD 12 million to be funded by the Group's
existing cash and bank facilities. The acquisition will support
LTG's strategic goal to achieve run-rate EBIT of at least GBP55
million by the end of 2021.
Breezy is a fast-growing talent acquisition software business,
providing small to medium sized businesses (SMB) with feature-rich,
intuitive and user-friendly recruitment software to optimise their
recruitment processes and maximise productivity. Breezy will become
a business within PeopleFluent, part of LTG's Software &
Platforms division.
The addition of Breezy to LTG's best-of-breed talent and
learning businesses is expected to enhance the Group's position in
the talent acquisition market. The acquisition extends the Group's
existing enterprise client-base to include a new SMB audience, with
typically faster self-service sales-cycles. Since its founding in
2014, Breezy's software has managed the recruitment of 15 million
candidates across 10,000 companies in 72 countries.
This complementary acquisition builds on LTG's acquisition of
PeopleFluent in 2018, which introduced a transformational talent
management capability to the Group. Breezy brings a proven and
successful intuitive experience for candidates, recognised by
Gartner as the most highly rated Applicant Tracking product for
customer satisfaction. We expect to leverage these features of
Breezy's software suite to support swifter and richer new feature
releases to PeopleFluent's Talent Acquisition enterprise
customers.
Breezy CEO, Darren Bounds, will continue with the business as
Managing Director, in addition to joining the PeopleFluent senior
leadership team.
In the year ended 31 December 2018 Breezy reported unaudited
revenue of USD 3.6 million (2017: USD 1.3 million) and EBIT grew to
USD 280,000 (2017: USD 826,000 loss), reflecting the operational
leverage of the business as it scales rapidly; 80% (2017: 67%) of
Breezy's revenue was derived from recurring subscription fees.
Cash consideration at completion will be USD 12 million. Further
performance based payments, capped at USD 18 million are payable in
cash to the Breezy management and equity investors based on
ambitious revenue growth targets in each of the years ending 31
December 2019, 2020 and 2021. The acquisition will be funded from
existing cash and bank facilities and is expected to be immediately
earnings accretive.
Jonathan Satchell, Chief Executive of Learning Technologies
Group, said:
"I am delighted that LTG is acquiring the software, skills and
further growth potential of Breezy. This fast-paced and innovative
business will be enhanced by the support of LTG.
Together with PeopleFluent, our talent acquisition software will
span the market from large enterprise to early-stage start-up, with
excellent organic growth potential in the mid-market segment. When
evaluating Breezy, I recognised similar characteristics to our
successful 2016 acquisition of Rustici - another acknowledged
leader in its field, with substantial recurring revenues and a
high-quality management team."
Darren Bounds, CEO of Breezy HR, said:
"I'm thrilled to have the opportunity to combine our vision with
that of LTG, enabling us to deliver greater business value and
product innovation to both existing and future customers, all at a
more accelerated pace than would have been possible on our
own."
Andrew Brode, Chairman of Learning Technologies Group, said:
"The acquisition of Breezy brings additional outstanding
software features that will be incorporated into PeopleFluent's
enterprise solution. It is a fast growing, high quality business
that will fit well within LTG.
I'm delighted with LTG's continuing strong development. Q1 2019
has been very positive and alongside today's acquisition my
confidence that LTG will deliver its strategic revenue and EBIT
objectives by the end of 2021 is further enhanced."
ENDS
Enquiries:
Learning Technologies Group plc
Jonathan Satchell, Chief Executive +44 (0)20 7402
Neil Elton, Chief Financial Officer 1554
Numis Securities Limited (NOMAD and Corporate
Broker)
Stuart Skinner, Nick Westlake (Nomad) +44 (0)20 7260
Ben Stoop (Corporate Broker) 1000
Goldman Sachs International (Joint Corporate
Broker) +44 (0)20 7774
James A Kelly, Adam Laikin (Corporate Broker) 1000
FTI Consulting (Public Relations Adviser) +44 (0)20 3727
Rob Mindell / Jamie Ricketts 1000
About LTG
LTG is a leader in the high growth workplace digital learning
and talent management market. The Group offers end-to-end learning
and talent solutions ranging from strategic consultancy, through a
range of content and platform solutions to analytical insights that
enable corporate and government clients to close the gap between
current and future workforce capability.
LTG is listed on the London Stock Exchange's Alternative
Investment Market (LTG.L) and headquartered in London. The Group
has offices in Europe, North America and Asia-Pacific.
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END
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