Deal summary
Futuremedia, the provider of e-learning content and services, acquired EBC, another player in the e-learning business based in the UK.
- The combination of EBC with Futuremedia's e-learning business was expected to give the Company a very strong presence in the automotive, financial, and service industries, with the ability to expand its learning business internationally.
- The purchase price for EBC was a combination of cash (GBP 3 million, $5.3 million) and Futuremedia shares (valued at GBP 1.45 million, $2.6 million). The number of Futuremedia shares was based on the average closing price of the Company's ADSs for the 20 trading days up to and including December 6th, or approximately 5.5 million shares.
- The closing of the acquisition was contingent on the Company securing financing for the cash portion of the purchase price and other customary closing conditions.
- The Company also agreed to enter into a consulting agreement with one of the principal shareholders of EBC pursuant to which Futuremedia paid the individual GBP 50 thousand ($89 thousand) over the 12-months following the closing
- Futuremedia had previously bid on another e-learning provider, Epic, but had been unsuccessful
About Futuremedia PLC
Futuremedia is a leading provider of next-generation, value-driven e-learning content and services to public and private sector organizations. Backed by two decades of experience, the Company's content and services offerings include learning consultancy, Learning Management Systems, custom made learning programs and an extensive library of published courseware titles. The Company is also recognized as a pioneer and leader in the development and delivery of a range of fully managed, outsourced employee benefit programs for large organizations, including products and services falling under the UK's Home Computing Initiative (HCI), childcare voucher system and tax-free bicycle programs.
About EBC
Based in Milton Keynes, EBC designed custom content e-learning solutions for organizations all over the world. Market leaders in online delivery, it created fast, flexible and cost-effective programs, stimulating employee creativity while focusing key resources on corporate ambitions.
"We are driving innovation of our business and industry, while operating a leaner,more efficient company. HCI enrollment rates continue to improve and, with the addition of EBC, we expect our e-learning business to become one of the UK's largest and fastest growing players. We expect that EBC will not only provide us with a strong profit center but will also significantly strengthen our digital media capabilities, broaden our client list and improve our ability to drive new business. Looking ahead, we expect to be a stronger company with businesses that are uniquely positioned to capitalize on the continued adoption of HCI and other tax-favored benefits packages, as well as the growing trend toward the use of digital media by companies and brands as a learning tool"
