Offer for e-learning firm likely to succeed

THE duo behind the attempted management buyout (MBO) at Irish e-learning company, Thirdforce, have increased their proposed offer after having their last one rejected in April.

Pat McDonagh and Brendan O’Sullivan – Thirdforce’s chairman and chief executive, respectively – initially made an offer of 8c per share for the company, via their LearnVantage vehicle.

Yesterday, they revised their offer to a three-pronged bid; which seems likely to succeed.

This involves a share-for-share option; a mix of shares and cash of 12c per share option or a straight offer of 10c per share.

Thirdforce’s board of independent directors have indicated that they are supportive, in principle, of the 10c per share option, given that it represents a premium of around 31% on the original 8c offer.

The independent directors said, via a stock exchange statement, discussions with LearnVantage have been ongoing but they may or may not lead to an offer being tabled.

Thirdforce – which specialises in software-based learning tools for company training modules and educational institutions – also published first-half results yesterday; showing an 11% year-on-year drop in revenue to €12.03 million, but a narrowing in its interim pre-tax losses from €904,000 to €809,000. The company’s first-half operating losses fell – year-on-year – from €897,000 to €886,000.

Mike Newton, Thirdforce’s deputy chairman, said the company has entered the second half of the year in a strong cash position, with €7.13m on hand, compared to €4.49m at the same stage last year.

The company’s share price was down by just over 9% – or 1c – at 10c in Dublin yesterday.