Integration of NetDimensions going to plan with full benefit of synergies expected in 2018

LTG have today issued a trading update up to the end of June, where they say first half revenue is up 62.5%. Their plan to build an international business with revenues in excess of £50 million appears to be on track. Continue reading Integration of NetDimensions going to plan with full benefit of synergies expected in 2018

Pause for a Second, and Look at What Might Be Coming Our Way

The top headline for January must surely go to Capita announcing their purchase of Brightwave (though LTGs deal with Ruistici is not far behind).  Corporate activity and consolidation within the e-learning market is not new, but if we take the Capita announcement along with other recent news items, then we should perhaps pause for a second, and look at what might be coming our way.
Continue reading Pause for a Second, and Look at What Might Be Coming Our Way

LTG to acquire Eukleia

Just over a week after announcing their continued appetite for acquisitions, LTG confirm their next deal – acquiring the entire issued share capital of Eukleia for up to £11m.

Eukleia is a provider of e-learning to the financial services sector and was established in 2005.  It is a provider of training in Governance, Risk and Compliance (GRC) for international banking and finance institutions.

An initial payment of £7.5m is being made up of £6.0m in cash and £1.5m in LTG shares (based on a 22p LTG share price).  The cash element of the Acquisition is being funded from the proceeds of the Placing of 35,714,286 new shares, raising £7.5m at 21 pence per share.  Up to a further £3.5m will be payable based on the revenue growth of Eukleia in each of the years ending 31 December 2016 and 2017.

The acquisition will help to give LTG a presence in the substantial and growing market for GRC, a new suite of products to offer through LTG’s US sales presence and a platform from which to grow more repeatable revenues and to expand into adjacent financial services sectors. Whilst Eukleia is expected to take advantage of LTG’s international presence to access other GRC markets, in particular, those in the US.

Jonathan Satchell, CEO of LTG, commented:
“This acquisition meets our goal of augmenting the Group with companies that are experts and leaders in their chosen field. Eukleia has grown rapidly in the GRC market and is well placed to benefit from the continued expansion in this market and the internationalisation of its client base.”

Eukleia operates from a single office in London and has 51 employees. The founders and the senior management will remain with the business.

Surplus funds from the share placing will be used to finance future acquisitions and for general corporate purposes.

Full details from LTG stock market announcement.