Learning Technologies acquires HR software outfit Breezy

Learning Technologies acquired the talent acquisition software provider for an initial cash consideration of $12m, funded from its existing cash and bank facilities, with the potential for a further $6m in performance payments based on "ambitious revenue growth targets".

The AIM-listed group told investors the acquisition of Breezy would enhance its position in the talent acquisition market and extend its existing enterprise client-base to include a new SMB audience, with typically faster self-service sales cycles.

In its last trading year, Breezy reported unaudited revenues of $3.6m and an EBIT of $280,000 - a marked improvement on the $826,000 loss it recorded a year earlier.

Chairman Andrew Bode 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."

As of 1225 BST, shares of Learning technologies had shot up 12.27% to 74.10p.