London-headquartered Learning Technologies Group, a digital learning and talent management provider, has acquired US-based EdTech firm eThink for an initial cash consideration of £14.8m.
The deal includes further performance payments capped at £11.9m, which are payable in cash, based on “ambitious incremental revenue growth targets” for the next three years.
eThink is a provider of learning management systems (LMS), particularly the open-source platform Moodle.
The firm will be integrated into LTG’s Open LMS business acquired in April 2020. The acquisition is part of LTG’s goal to consolidate the Moodle market, and adds approximately 40 Moodle specialists.
Jonathan Satchell, CEO of LTG, said of the deal: “eThink is an important addition to further build-out the Open LMS business acquired in April this year and create an industry powerhouse in the high-growth Moodle market.
“The eThink team has built a strong business delivering high levels of growth and profitability, which we expect to be further enhanced through integration with Open LMS. This year has seen incredible growth for LTG’s Moodle capability and it now represents about 20% of the Group’s recurring software revenue.”