Now more than ever, companies are looking for scalable, turn-key solutions to upskill their workforces to stay competitive in an evolving market. In fact, the World Economic Forum found that 54% of current employees will require “significant upskilling and reskilling” by 2022.
With 2021 quickly coming to an end, it makes sense that the demand for comprehensive workforce performance solutions is high. This is reflected in Learning Technologies Group (LTG)’s agreement to acquire GP Strategies, a leader in workforce performance transformation, for $394M, which is one of the biggest mergers we’ve seen in the corporate training industry to date.
The Perfect Pair
The deal is largely a symbiotic one, offering unique benefits for both companies. LTG’s portfolio of learning technology companies, which includes everything from learning record stores (LRSs) to learning experience platforms (LXPs), will provide scalable platforms to help GP Strategies deliver their top-notch learning services and large-scale workforce performance improvement initiatives.
For LTG, the merger will mean instant access to GP Strategies’ inherent expertise in building complex learning solutions, which is a notoriously difficult skill to recruit for and would have taken considerable time to develop in house.
With expertise in all of the core process capabilities of great training organizations, the merged company will be well-equipped to help even Fortune 100 companies with complicated learning systems environments deliver successful programs. But that doesn’t mean middle-market companies will be left behind: The combined company will boast an impressive toolbox of ready-to-use, out-of-the-box solutions that smaller organizations can implement right away.
Ultimately, with both GP Strategies and LTG’s portfolio of companies making a regular appearance on Training Industry’s Top 20 Training Companies Lists — and a market cap of $1.79B — we can reasonably expect the combined company to make waves across nearly all segments of the corporate training market.
All Your Employee Performance Improvement Needs in One Place
More and more organizations are looking to not only adopt learning technologies but also to bring in the knowledge and services needed to implement them effectively. Thus, the merged company will offer a comprehensive solution that many buyers have been looking for. That’s why this merger makes sense, says Ken Taylor, chief executive officer at Training Industry. “As companies look to deliver great training, they’ll want to partner with a vendor who has a deep understanding of how learning technologies can support large-scale programs successfully.” The merged company, he says, is positioned to do just that.
With the ability to identify innovative solutions to workforce performance problems, and to deliver solutions using cutting-edge technologies, the combined company will likely provide the marketplace with a one-stop shop for buyers’ employee performance improvement needs. This will be a key competitive advantage for the merged company, as organizations are looking to improve performance quickly and at scale to keep pace with shifting business priorities.
In addition to designating itself as a one-stop workforce performance improvement shop, the merger will create a notable global footprint for the company. This is another competitive advantage worth noting: With business becoming more and more globally distributed, the combined company (which will boast around 5,500 employees worldwide) will have a presence in 80 countries globally, according to the press release.
Agreeing to merge companies during COVID-19, a turbulent time for businesses across industries, is a major feat for both LTG and GP Strategies. It proves that they can not only survive but thrive during adverse times, and that their workforce performance transformation solutions can help their current — and future — customers do the same.