20 January 2021
Learning Technologies Group plc
("LTG", the "Group")
(AIM: LTG)
Agreed acquisition of Reflektive
- Agile performance management software expands PeopleFluent's capabilities
- Highly complementary acquisition provides flagship engagement and analytics tools
Learning Technologies Group plc, the provider of services and technologies for digital learning and talent management, has agreed to acquire Reflektive Inc ("Reflektive"), a leading performance management software provider, from a group of institutional investors for a cash consideration of $14.2 million (c.£10.4 million).
Headquartered in San Francisco, Reflektive specialises in engagement and analytics tools. It offers a collaborative goal setting, continuous feedback and analytics platform used by corporate teams and individuals to provide measurable results for boosting productivity, engagement, and retention. Reflektive will join LTG's PeopleFluent business, integrating its solution with the existing PeopleFluent talent management portfolio. The combination with LTG's other software solutions provides opportunities for cross-sell and upsell-led growth.
Reflektive achieved revenue of c.$14 million in FY20, of which the vast majority was derived from recurring annual and multi-year contracts. Reflektive generated an EBITDA loss of c.$7 million in the same period but LTG expects Reflektive to become earnings accretive in H2 2021 and align with its typical software division margins by early 2022.
The acquisition, which will complete on 29 January 2021, is to be funded from LTG's cash resources.
Consideration of $14.2 million (c.£10.4 million) at completion will be subject to customary price adjustments.
Jonathan Satchell, Chief Executive of LTG, said:
"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. 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%."
ENDS
Enquiries:
| Learning Technologies Group plc Jonathan Satchell, Chief Executive Neil Elton, Chief Financial Officer
| +44 (0)20 7402 1554 |
| Numis Securities Limited (NOMAD and Corporate Broker) Stuart Skinner, Nick Westlake, Ben Stoop
| +44 (0)20 7260 1000 |
| Goldman Sachs International (Joint Corporate Broker) Bertie Whitehead, Adam Laikin
| +44 (0)20 7774 1000 |
| FTI Consulting (Public Relations Adviser) Rob Mindell, Jamie Ricketts, Chris Birt | +44 (0)20 3727 1000 |
About LTG
Learning Technologies Group plc (LTG) is a leader in the growing 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, South America and Asia-Pacific.
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