Learning Technologies offloads VectorVMS in $50m deal

26th Jun 2024 11:49

(Sharecast News) - Learning Technologies Group announced the sale of its VectorVMS business to PIXID Group on Wednesday, for $50m.

The AIM-traded firm said the transaction, which was expected to close in July, is on a cash and debt-free basis, subject to customary adjustments.

VectorVMS, a prominent vendor management platform for contingent labour, operates primarily in North America and the UK.

The business was acquired by LTG as part of the $150m PeopleFluent acquisition in 2018 and was subsequently established as an independent entity later that year.

For the year ended 31 December, VectorVMS generated $11.4m in revenue and $7.1m in adjusted EBIT.

The board said the sale aligned with the company's strategy to refine its portfolio, emphasising its core focus on learning and talent development.

It noted that the divestiture of VectorVMS followed the previous sales of Lorien Engineering Solutions and TTI in 2023.

The board said it would consider how to use the proceeds from the VectorVMS sale and would provide an update to the market in due course.

It described PIXID Group, backed by Keensight Capital, as one of Europe's largest vendor management platforms, with the acquisition set to enhance its market position.

At 1215 BST, shares in Learning Technologies Group were up 1.21% at 83.5p.

Reporting by Josh White for Sharecast.com.