StockMarketWire.com - Learning Technologies Group has conditionally agreed to acquire Rustici Software LLC, the global market leader in digital learning interoperability, for an initial consideration of USD26 million from its founders, Mike Rustici and Tim Martin.

Simultaneously, LTG will provide a USD3 million cash investment for a 30% equity stake in Watershed Systems Inc, developer of the next generation learning analytics platform.

Both transactions will be funded through a mix of cash and shares and are conditional on issue of consideration shares and transfer of funds.

The board anticipates the transactions to be materially EPS enhancing in 2016 and beyond. Completion is expected to be announced shortly. Rustici was established in Nashville, USA in 2002 and has been instrumental in the support and development of the universal technical standards for the e-learning software industry. It is the acknowledged global leader in SCORM (Sharable Content Object Reference Model) conformance. SCORM is the de facto industry standard for e-learning interoperability, allowing online learning content and learning management systems to communicate and work together. Rustici is also the co-creator of the next generation of learning interoperability standards, Tin Can API, or xAPI. This global standard was created to capture rich data on every aspect of learning experiences. To utilise and exploit this data, the founders created a separate business, Watershed, which has developed a SaaS based learning analytics service to fully ascertain the impact and effectiveness of learning programmes. Gathering learning data and in turn utilising this data to create more effective learning experiences and tangible business results, is the next significant advance for the learning industry and Watershed is at the forefront of this development. Tim Martin will remain the CEO of Rustici under LTG's ownership and Mike Rustici will focus exclusively on Watershed to accelerate the development of this young, high growth business.




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