LDC in £40m learndirect deal

LEADING online learning provider learndirect has been bought by mid-market private equity firm LDC in a deal valued at £40m.

LDC, part of Lloyds Banking Group, has bought Sheffield-based learndirect by acquiring its parent Ufi from the Ufi Charitable Trust (UCT).

UCT, a registered charity, was set up in 1998 to use new technology to transform the delivery of learning and skills.

Parties behind the deal believe it will give learndirect the ability to compete more effectively in the wider marketplace by accessing a greater pool of potential learners and businesses and expanding its range of services.

Through the learndirect brand, which was launched in 2000, Ufi has helped more than 3m people and thousands of businesses use the internet to gain skills and qualifications in areas such as maths, English and IT.

Ian Crabb, the former chief executive of wifi and wired products supplier Quadriga Worldwide, and a former member of the senior management team at private equity firm Permira, has been parachuted in to become chairman of Ufi and help develop the next stage of learndirect’s growth.

John Swarbrick (pictured right), senior director at LDC in Leeds, who advised on the deal, said: “learndirect has established itself as the UK’s leading online learning provider with a strong brand and presence in the market.

“With additional financial backing, it has a fantastic opportunity to expand its services and access a far greater pool of potential learners and businesses. Accelerating economic growth through investment in skills is a major agenda issue for the UK – organisations like learndirect have a critical role to play.”

Sarah Jones, chief executive of learndirect, said “The sale of Ufi Ltd and its learndirect brand is the beginning of a new era for training provision in the UK. We are a commercial company operating in a competitive industry. 

“As a leader in online learning, we have developed valuable expertise and experience, which gives us a strong platform for growth and a fantastic consumer brand.

“The change in ownership will allow us to reach more businesses and learners with a wider range of products and services, while continuing to deliver excellent training and raise standards across the sector.”

A team from Rothschild, led by Graham Cant, advised Ufi on the deal, while corporate partner Roger Hart, from Addleshaw Goddard, led a team which also advised the vendor. 

LDC was advised by Deloitte.

Dan Renton, director in corporate finance for Deloitte in Yorkshire, said: “Advising LDC on its investment in learndirect has been particularly rewarding for our team as the business has such an important role to play in upskilling learners in Yorkshire and across the UK.

“learndirect is a great example of a Yorkshire business that has rapidly grown to be a UK market leader but which has a very real ambition to create further value through the innovation, creativity and drive of its people and management team. The skills sector is one well represented in this region and we expect to see further opportunities for growth across the market.”

Pinsent Masons in Leeds provided legal advice to LDC. Catalyst Corporate Finance provided advice to the management of learndirect.