AdNeo Limited is acquiring Learnt Global in a $5.775 million scrip deal, significantly expanding its footprint in Australia’s fast-growing vocational education market. The combined entity forecasts doubling revenue and achieving positive EBITDA by mid-2026.
- Acquisition valued at $5.775 million via 100% scrip deal
- Entry into $23 billion Australian vocational education sector growing at 13% CAGR
- Forecast combined revenue of over $11 million in FY25 and EBITDA exceeding $2 million in FY26
- Identified $2 million in cost synergies and elimination of $3 million debt
- Strategic board additions including education industry veteran Kevin Lynch
Strategic Acquisition in a High-Growth Sector
AdNeo Limited (ASX: AD1) has announced a transformative acquisition of Learnt Global, a leading player in education technology and vocational education content, for $5.775 million through a 100% scrip transaction. This deal marks a significant expansion for AdNeo into the Australian vocational education and training (VET) sector, a market currently valued at $23 billion and projected to grow at a robust 13% compound annual growth rate through 2030.
The acquisition price represents a revenue multiple of 1.0x, a substantial discount compared to market comparables trading above 3.0x, signaling a potentially accretive deal for AdNeo shareholders.
Expanding Product Portfolio and Market Reach
Learnt Global brings to the table an integrated suite of products including over 4,000 micro-credentials, 1,300 nationally accredited courses, and a modern student management system (SMS) called Vasto, which serves 30 registered training organisations (RTOs) and manages more than 400,000 students annually. Additionally, Learnt’s learning management system (LMS) caters to enterprise clients, engaging over 50,000 employees each year.
This acquisition diversifies AdNeo’s offerings across education content, student management, and corporate learning solutions, positioning the combined group as a comprehensive provider in workforce transformation and education technology.
Financial Upside and Operational Synergies
Post-acquisition, the combined entity is expected to more than double its annual revenue from approximately $5 million to over $11 million in FY25. EBITDA is forecast to exceed $2 million in FY26, supported by identified cost synergies of $2 million, with $500,000 expected to be realised before settlement.
Importantly, the transaction includes a capital raise and debt conversion that will eliminate $3 million of existing debt, leaving AdNeo in a net cash positive position. This improved balance sheet and operational scale enhance the company’s financial stability and growth capacity.
Leadership and Growth Strategy
Kevin Lynch, a seasoned education industry leader with a track record of building major education businesses such as Torrens University and Open Colleges, will join AdNeo’s board. His expertise is expected to drive the company’s growth strategy in the vocational education sector.
The combined group plans to leverage ‘Super Projects’ and joint ventures to accelerate revenue growth, targeting a forecasted 20% increase in FY26. The acquisition also opens opportunities for further roll-ups of RTO providers and expansion into new verticals such as AI-powered learning and micro-credentials.
Positioning for the Future of Workforce Education
With this acquisition, AdNeo is positioning itself as a leader in workforce transformation solutions tailored for the AI era. The company’s enriched product portfolio and expanded client base, including over 450 VET providers and 1.4 million students annually, offer a strong foundation for sustainable growth and market leadership.
While the financial forecasts are promising, the success of this acquisition will depend on effective integration, realisation of synergies, and execution of growth initiatives in a competitive and evolving education landscape.
Bottom Line?
AdNeo’s bold move into vocational education could redefine its growth trajectory—next steps will reveal if it can deliver on its ambitious forecasts.
Questions in the middle?
- How quickly will the identified $2 million cost synergies be realised post-acquisition?
- What are the key risks in integrating Learnt’s technology platforms with AdNeo’s existing systems?
- How will the company capitalise on emerging AI-powered learning opportunities to sustain growth?