Learning Technologies Group acquires PeopleFluent
April 26, 2018
Learning Technologies Group (LTG), an Aim-listed provided of staff training software, is to expand in the United States with the £107m takeover of Massachusetts-based PeopleFluent.
LTG, which has been expanding rapidly through acquisitions, will fund its latest deal with a £80m placing and £25m in new borrowing. Goldman Sachs and Numis are advising the company.
The deal values PeopleFluent, which has sales of £124m, at around 12.5 times profit. It is the sixth takeover by LTG since it listed five years ago on a valuation of just £20m. At the end of trading today the company’s market capitalisation was nearly £590m.
In a note to clients last week, analysts at Berenberg tipped LTG to benefit from rising demand for training, career management and related software.
Berenberg said “We believe it has significant cross-selling opportunities across its service lines that are still in their infancy and a long runway for industry consolidation.”
The LTG board is led by Andrew Brode, the former UK chief executive of Wolters Kluwer. He is also executive chairman of RWS, an Aim-listed translation provider.