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.
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.