Galway-based online training company EssentialSkillz sold for 29 million euros
Galway-based EssentialSkillz is bought by UK-based Marlowe for £ 25million (€ 29.6million).
essentialSkillz provides e-learning and compliance software as a service.
The EssentialSkillz platform enables organizations to improve their employees in all areas of compliance. The company has designed more than 70 online courses focusing on health and safety, business protection and well-being.
EssentialSkillz was founded in 2001 by husband and wife team Tony and Michelle Dervan. Tony had worked on multi-million dollar e-learning projects for Microsoft Interactive Press and Michelle was a teacher.
The company, which has more than 500 small and medium-sized business customers, has current revenue of £ 4.5million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of 49 pc.
EssentialSkillz had net assets of around £ 2.3million at the end of 2020.
Its clients include the Discovery Channel, the World Wide Fund for Nature (WWF) and the breakfast cereal company Weetabix.
The acquisition will bring Marlowe’s revenues and adjusted EBITDA to around £ 335 million and around £ 60 million respectively, according to a statement from the UK group.
Profits are expected to increase in the first full year of ownership.
The EssentialSkillz business will remain unchanged and will continue to operate the same from the same location once the deal is done, the Galway-based company said in a brief statement.
The current staff and management team will also remain unchanged.
“This is an exciting advancement for EssentialSkillz and brings tremendous benefits to our customers through the scale and breadth of services offered by the group at large,” said the company.
“We look forward to providing the same excellent service to you as a member of the Marlowe Group,” he added.
Marlowe has proposed a share placement to raise £ 50million (€ 59.3million) to fund the acquisition and other accretive add-on acquisitions in the short term.
“This acquisition of EssentialSkillz is the next step in our strategy to become the market leader in compliance software,” said Alex Dacre, Managing Director of Marlowe.
“EssentialSkillz is a leading SaaS compliance and large-scale e-learning company and its merger with our new WorkNest platform further strengthens our one-stop regulatory compliance offering for our customers. ”