Learning Technologies offloads non-core Lorien business
Digital learning and talent management specialist Learning Technologies Group announced the sale of Lorien Engineering Solutions, a provider of engineering design and project management services, on Tuesday.
The AIM-traded firm said the purchaser was the global engineering consultancy NIRAS Group, with the transaction valued at $21.4m on a cash-free, debt-free basis, subject to customary adjustments.
It said completion was expected in January, pending the satisfaction of closing conditions.
Lorien’s management team would continue to play a pivotal role under its new ownership.
The board said the divestment aligned with the company’s strategic move to exit non-core assets within GP Strategies, which had been identified for disposal.
In addition to the sale of Lorien, Learning Technologies previously closed a UK apprenticeships business in January.
The board said the sale of Lorien would enable the company to expedite its ongoing deleveraging efforts, channel capital towards higher growth areas of the business that were closely aligned with its core offerings in digital learning and talent management, and facilitate future value-enhancing acquisitions.
Learning Technologies said it was maintaining its focus on implementing the transformation and integration of GP Strategies to seize growth opportunities within an addressable market exceeding $100bn.
For the financial year ending on 31 December, Lorien was projected to generate $21.2m in revenue and $4m in EBIT.
Additionally, Learning Technologies confirmed the successful completion of the carve-out of TTi Global’s external staffing business, a subsidiary of GP Strategies.
The transaction, which involved a cash consideration of $0.8m, saw the transfer of several client staffing contracts related to high-quality engineering and technical roles, along with personnel, to Premier Staffing Solution in October.
Over the last 12 months leading up to October, the contracts yielded $14.1m in revenue and $0.3m in EBIT.
“We are pleased that Lorien has found an excellent home in NIRAS which has the strategy and team to develop Lorien’s offering,” said chief executive officer Jonathan Satchell.
“Alongside the carve-out of contracts from TTi, these transactions are further important steps in purifying GP Strategies’ focus on its core mission of corporate learning and talent development solutions.”
At 1241 GMT, shares in Learning Technologies Group were up 0.28% at 71.55p.
Reporting by Josh White for Sharecast.com.