Instructure’s Bridge Learning Management system (LMS), designed for corporate and enterprise clients, has been the subject of speculation regarding its future for over a year. Concerns arose when Instructure, then a publicly traded company, expressed disappointment in Bridge’s growth trajectory. However, the direction for Bridge learning management is now clear: it has been acquired by Learning Technologies Group (LTG), a UK-based leader in digital learning and talent development.
This acquisition, finalized over the weekend, sees LTG acquiring Bridge for $50 million in an all-cash deal. The transaction is anticipated to close on February 26th, marking a significant shift in the landscape of bridge learning management systems and corporate learning solutions.
According to financial details released, Bridge currently serves over 800 customers and generated $21 million in revenue in the past year. A significant portion, over 90%, of this revenue was recurring, highlighting customer retention. Despite this, Bridge reported a $1.3 million loss, indicating potential challenges in profitability within Instructure’s portfolio.
Launched in 2015, Bridge represented Instructure’s attempt to extend its success with Canvas, a prominent LMS in higher education, into the corporate learning sector. However, the corporate learning market differs significantly. Industry experts like Michael Feldstein have noted that corporate LMS solutions are often not considered as critical as those in education, making them vulnerable to budget cuts during economic downturns. The corporate learning market is also highly competitive and fragmented, with a greater number of providers compared to the higher education LMS market.
LTG emerges as a key player in this competitive landscape, actively expanding its portfolio of workforce learning tools since its inception in 2013. The acquisition of Bridge learning management marks LTG’s seventh acquisition since raising substantial capital in May 2020. Previous acquisitions include Open LMS, a Moodle-based LMS platform formerly owned by Blackboard, demonstrating LTG’s strategic growth through acquisition.
LTG anticipates its revenue for 2020 to reach at least £131 million (approximately US $182 million), with adjusted earnings of £40 million (US $55.6 million). The addition of Bridge learning management is expected to further strengthen LTG’s market position and offerings.
Jonathan Satchell, CEO of LTG, stated that “Bridge adds real strength and depth to our learning and talent offering for the mid-enterprise market, which has attractive structural dynamics.” He emphasized that the acquisition broadens LTG’s market reach, enabling the company to cater to a wider range of clients, regardless of size or complexity, within the bridge learning management and corporate training space.
For Instructure, this sale signifies the conclusion of its ambitions in the corporate learning market. This decision aligns with earlier indicators, such as the layoff of approximately 100 employees last January, predominantly from the Bridge team, preceding Instructure’s acquisition by Thoma Bravo.
Instructure has stated that divesting Bridge will allow them to concentrate exclusively on the K-12 and higher education sectors. The company plans to pursue further acquisitions within these core markets. Instructure’s acquisition history includes four companies, most recently Certica Solutions, a K-12 assessment and analytics tool provider, acquired last December.
In conclusion, the acquisition of Bridge learning management by LTG represents a strategic move for both companies. For Instructure, it allows a sharpened focus on its primary education markets. For LTG, it signifies a significant expansion of its corporate learning solutions portfolio and market reach within the competitive bridge learning management system industry.
