Absorb LMS has acquired Utah-based Torch LMS. This acquisition is the first in its acquisition growth strategy, financed through its Silversmith Capital Partners investment.
In 2017, Absorb LMS received a $59 Million investment led by Silversmith Capital Partners, a Boston-based growth equity firm. This investment was designated for growth and to accelerate development of the Absorb LMS platform.
Absorb is betting that this acquisition will better position the company to take advantage of the fast growing eLearning market. Absorb LMS will be taking on all Torch LMS customers and employees.
As markets mature and organic growth is harder to achieve, acquisitions and mergers increase as companies try to secure more market share. As Absorb LMS has said, this is its first in its acquisition strategy. With the LMS market set to grow from $9.2 Billion USD to $22.4 billion USD, the competition to attract customers is going to intensify. The LMS industry should expect an increase in mergers and acquisitions over the next few years.
Source: Absorb LMS at SoftwareReviews, Report
Published January 2019