Fusion Corporate Partners

Learning Technologies Group plc, an e-learning company, has acquired Preloaded Limited for an initial consideration of approximately £2.2 million including anticipated cash in the balance sheet of Preloaded on completion of £1.47 million.

Preloaded was founded in 2000 and has a leading reputation as a BAFTA winning applied games studio, designing games to utilise the power of gaming to engage, educate and communicate in the areas of Learning, Health, Engagement and Training. Preloaded works for organisations across the education, entertainment, publishing, advertising and broadcasting sectors with clients including Amplify (a subsidiary of News Corp), Disney, Science Museum Group, Wellcome and the BBC.

In its unaudited management accounts for the year ended 31 March 2014, Preloaded generated revenues of £1.8 million, EBITDA of £0.59 million and profit before tax of £0.57 million. Net assets as at 31 March 2014 are estimated at £1.6 million.

LTG has agreed to acquire Preloaded for £2.2 million, to be satisfied by approximately £1.6 million in cash (of which £1.2 million will be paid upon completion and it is expected that £0.4 million will be paid during the first twelve months) and 3,125,000 ordinary shares (the “Consideration Shares”) in LTG. Further consideration of up to £3.4 million may be payable to be satisfied in ordinary shares, dependent on financial performance.

Jonathan Satchell, CEO of LTG, commented: “This exciting acquisition will bring additional skillsets, clients and talent to the Group, opening up a new avenue in the important discipline of learning games and simulations for LTG to satisfy the growing demand for e-learning.  Preloaded complements our existing businesses Epic and the recently acquired LINE and brings substantial opportunity to grow organically.”

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