MELBOURNE: AdNeo Limited (ASX: AD1) has entered into an agreement to acquire Learnt Global Group, a leading technology and education services provider, in an all-scrip deal valued at $5.8 million.
The acquisition, priced at $0.07 per share, represents a 49% premium to AdNeo’s 30-day volume-weighted average price (VWAP).
The deal, which includes Learnt Global’s subsidiaries, is part of AdNeo’s strategy to expand its SaaS-based enterprise solutions in workforce transformation and education technology. Learnt Global serves over 450 registered training organizations (RTOs) and 1 million students annually, while its enterprise software is used by 30 companies to train 50,000 employees each year.
Key Highlights of the Transaction:
– The combined entity is expected to double AdNeo’s annual revenue to approximately $11 million.
– AdNeo has secured $1.5 million in equity commitments from Salter Brothers Asset Management, priced at $0.045 per share, a 3.3% discount to the 30-day VWAP.
– Pure Asset Management, a major shareholder and debt provider, will convert $1.5 million of debt into equity at $0.07 per share, reducing AdNeo’s debt by 57%.
– Cost synergies of $2 million are projected within 90 days post-acquisition.
The acquisition is conditional on shareholder approval and other regulatory clearances. Learnt Global shareholders will receive 82.5 million AdNeo shares upfront, with an additional 113.4 million shares contingent on meeting FY27 revenue and EBIT targets of $8 million and $1.15 million, respectively.
AdNeo CEO Angus Washington called the deal “transformative,” citing synergies between the companies’ offerings in enterprise learning, micro-credentials, and student management systems. Chairman Nicholas Smedley welcomed two new independent directors, Kevin Lynch and Ian Basser, to support the combined business’s growth.
Shares of AdNeo remain in voluntary suspension pending completion of the equity placement.
AdNeo (ASX: AD1) acquires and manages high-growth SaaS and innovative services companies. Headquartered in Melbourne, the company focuses on strategic acquisitions to drive shareholder value.