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Learning Tech buys Breezy HR

The deal will be immediately earnings accretive
Learning Tech buys Breezy HR

Shares in Learning Technologies (LTG) climbed by more than a tenth on the news of its purchase of talent-acquisition software platform Breezy HR for an initial $12m (£9.2m). Further performance-based payments are expected over the next three years – capped at $18m. Breezy works primarily with small-to-medium-sized businesses, helping them to improve their recruitment processes.

IC TIP: Buy at 76p

The deal will be financed via LTG’s existing cash and bank facilities, and should be “immediately earnings accretive”. For 2018, Breezy reported revenues of $3.6m (up from $1.3m) and operating profits of $0.28m (up from losses of $0.83m). 80 per cent of Breezy’s sales last year were recurring in nature.

Breezy will be incorporated into talent management platform PeopleFluent, which LTG bought last June for $150m and which constituted the group’s first step into talent management.