AdNeo Limited announces a transformative all-scrip acquisition of Learnt Global Group, poised to double its annual revenue and unlock significant growth opportunities. The deal is backed by a $1.5 million equity placement and strategic board appointments.
- Acquisition of Learnt Global valued at $7.3 million via all-scrip deal
- Deal includes $1.5 million debt conversion by Pure Asset Management
- Expected to double AdNeo’s annual revenue to approximately $11 million
- Equity placement cornerstoned by Salter Brothers for $1.5 million
- Two experienced independent directors appointed to AdNeo’s board
A Strategic Acquisition to Accelerate Growth
AdNeo Limited (ASX: AD1) has taken a decisive step forward in its growth strategy by announcing the acquisition of Learnt Global Group, a well-established technology and education services provider. The all-scrip deal, valued at $7.3 million, includes a $1.5 million debt conversion from Pure Asset Management, signaling strong confidence from key stakeholders. This acquisition is expected to nearly double AdNeo’s annual revenue base to around $11 million, positioning the company for accelerated expansion in the SaaS and education technology sectors.
Unlocking Synergies and Expanding Product Offerings
Learnt Global brings a comprehensive suite of learning and training solutions, including an enterprise Learning Management System, accredited course content for over 420 Registered Training Organisations, and a Student Management System. These offerings complement AdNeo’s existing SaaS-based recruitment and mentoring platforms, creating a more integrated product portfolio that addresses workforce transformation challenges in the AI era. Management anticipates $2 million in cost synergies within the first 90 days post-acquisition, underscoring the operational efficiencies expected from the combined group.
Funding the Future: Equity Placement and Debt Conversion
To support this transformative acquisition and future growth, AdNeo is conducting an equity placement priced at 4.5 cents per share, modestly discounted from the prior 30-day volume-weighted average price. Salter Brothers Asset Management has committed $1.5 million as a cornerstone investor, also providing advisory support to broaden AdNeo’s investor network. Meanwhile, Pure Asset Management is converting $1.5 million of debt into equity at a premium price of 7 cents per share, reflecting strong confidence in the company’s prospects and reducing AdNeo’s debt by 57%.
Strengthening Governance with Experienced Leadership
Alongside the acquisition, AdNeo has appointed two new independent directors, Kevin Lynch and Ian Basser, both bringing extensive experience in technology, education, and M&A. Lynch, currently Chairman of Learnt Global, will join the AdNeo board upon completion, ensuring continuity and strategic alignment. These appointments signal AdNeo’s commitment to robust governance and its ambition to scale rapidly through strategic acquisitions and operational excellence.
Looking Ahead: Conditions and Shareholder Approval
The completion of the acquisition remains subject to several conditions, including shareholder approval at an upcoming general meeting and the successful completion of the equity placement. The earn-out structure tied to FY27 revenue and EBIT targets adds a performance-based incentive, aligning interests between the sellers and AdNeo shareholders. If these milestones are met, additional shares may be issued, further cementing the partnership and growth trajectory.
Bottom Line?
AdNeo’s acquisition of Learnt Global marks a pivotal moment, but execution and integration will be key to unlocking its full potential.
Questions in the middle?
- Will AdNeo meet the ambitious FY27 revenue and EBIT targets to trigger earn-out shares?
- How effectively will the company integrate Learnt Global’s operations and realise the $2 million cost synergies?
- What impact will the equity placement and debt conversion have on AdNeo’s share price and investor confidence?