SkillSoft vollzieht Akquisition NETgs von The Thomson Corporation

Unternehmen bestens positioniert für den wachsenden Marktbedarf an e-Learning und Performance-Support Lösungen, die Lernen mit Geschäftszielen verbinden

NASHUA, N.H., 14. Mai /PRNewswire-FirstCall/ -- SkillSoft PLC (Nasdaq: SKIL - News), führender Anbieter von e-Learning und Performance Support Lösungen für globale Konzerne und mittelständische Unternehmen, die Öffentliche Hand und Bildungsanbieter, hat heute den Vollzug der Akquisition NETgs von The Thomson Corporation bekannt gegeben. Die Akquisition erfolgte für ca. $270 Millionen in bar, vorbehaltlich üblicher nachträglicher Anpassungen. Die neue Organisation bietet umfassende Schulungslösungen bestehend aus Content in verschiedensten Medien, wie Online-Kurse, Simulationen, Video-Programme und e-Books, Technologie, wie zum Beispiel Lerner-Managementsysteme sowie ergänzende Dienstleistungen. Die Akquisition dient SkillSofts Ziel, die umfassenste und qualitativ hochwertigste Schulungslösung im globalen e-Learning Markt anzubieten und positioniert das Unternehmen bestens, um die Anforderungen in diesem Wachstumsmarkt zu erfüllen.

Bereits am 25. Oktober 2006 hatte SkillSoft bekanntgegeben, ein definitive Vereinbarung zum Kauf von NETg mit The Thomson Corporation getroffen zu haben.

"Die Akquisition NETgs von The Thomson Corporation bringt deutliche Vorteile, von denen wir glauben, dass sie substantiellen langfristigen Kunden- und Shareholder-Value erzeugen werden“, sagte Chuck Moran, SkillSofts President, Chief Executive Officer und Chairman. "Durch die wesentliche Erweiterung unseres Kundenstamms und des Produktangebots können wir jetzt mehr in Forschung und Entwicklung von neuen Produkten investieren. Dies stärkt SkillSofts Fähigkeit, Kunden in der ganzen Welt mit globalen Schulungslösungen zu beliefern.

Mit über 1000 ausgewählten NETg-Titeln aus Fachgebieten, die SkillSoft bisher nicht im Programm hatte, bietet das neue Unternehmen jetzt über 6,000 e-Learning Kurse in 19 Sprachen, über 14,000 IT- und Business-Bücher, Zusammenfassungen und Executive Reports sowie über 400 Video-Programme zur Führungskräfteentwicklung. SkillSoft wird darüber hinaus das NETg-Angebot an virtuellem Live-Training unter dem Namen SkillSoft Live Training™ auf den Markt bringen. SkillSoft plant, NETg-Content in seinem Lerner-Managementsystem SkillPort™ verfügbar zu machen und wird SkillSoft-Content in die NETg-Management Plattformen integrieren.

Damit können die Kunden beider Unternehmen kurzfristig auf den gesamten Content zugreifen während SkillSoft das langfristige Ziel einer einheitlichen LMS-Plattform verfolgt. Beide Integrationen – NETg-Produkte in SkillSoft-Plattformen und umgekehrt – sollen im 3. Quartal des SkillSoft-Geschäftsjahres 2008, d.h. bis November 2007, vollzogen sein.

Mit der erforderlichen “kritischen Masse” und einer Unternehmensgröße, die es erlaubt, kontinuierliche Innovationen und umfassende e-Learning Lösungen auf globaler Ebene zu entwickeln, ist SkillSoft jetzt bestens positioniert, um verschiedenste Kundenanforderungen abzudecken. Das neue Unternehmen verfügt über erheblich erweiterte Ressourcen, um seinen Kundenstamm von über 3,000 Organisationen optimal zu betreuen.

Der Kaufpreis stellt eine nachträgliche Anpassung des ursprünglichen Kaufpreise von 285 Millionen Dollar dar, auf Grundlage der im Kaufvertrag vereinbarten Faktoren.

Das Senior Mangementteam von SkillSoft bleibt in seinen gegenwärtigen Positionen unter der Leitung von Chuck Moran, President, Chief Executive Officer und Chairman.

Credit Suisse betreute SkillSoft bei allen Finanzfragen bezüglich dieser Transaktion WilmerHale unterstützte SkillSoft bei allen rechtlichen Fragen bezogen auf diese Transaktion.

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Financial Impact
Under the terms of the acquisition agreement, SkillSoft paid approximately $270 million in cash to Thomson. The purchase price is subject to certain post-closing adjustments related to NETg's closing balance sheet. The cash consideration was financed through available cash balances and bank financing from Credit Suisse of approximately $200 million.

The company expects the transaction to be dilutive to GAAP earnings in fiscal year 2008, ending January 31, 2008, due to transaction and integration costs along with an adjustment to deferred revenue as a result of the application of purchase accounting. However, SkillSoft expects the transaction will be accretive to GAAP earnings in fiscal year 2009, ending January 31, 2009, as transition costs are reduced and significant cost synergies are more fully realized. SkillSoft will immediately focus on validating its restructuring assumptions and developing a more comprehensive understanding of leveraging the strengths of both organizations while eliminating redundancy and underperforming operations and assets. Anticipated revenue synergies may provide an upside to earnings due to cross-selling opportunities, but are not required or assumed to make this deal accretive in fiscal year 2009.

NETg offers many of the same financial and operating characteristics as SkillSoft's business model, including an annual recurring subscription-based licensing model for access to its learning resources library, a direct sales force distribution system complemented by resellers and telesales support, and a Global 2000 client base offering visibility through multi-year contracts and renewal rates. As a result, the acquisition is expected over time to support both SkillSoft's revenue predictability and growth. The acquisition will also help SkillSoft to reach critical mass and shorten its timeframe to approach its long term operating profitability objectives through incremental scalability and significant cost synergies.

Based on the audited financial statements for the period ended December 31, 2006, consolidated revenue for the NETg business was approximately $149 million with corresponding 2006 operating costs of $167 million, before depreciation and amortization, corporate charges and deal costs, which were approximately $6 million, $11 million and $18 million, respectively. The net operating loss, considering all these items was approximately $53 million.

In addition to its core e-learning content NETg also offers other products and services, including instructor-led training, custom consulting services, print-based content and third party content products. Following the closing, SkillSoft intends to de-emphasize the focus on selected low margin and low growth product lines and channels of distribution and to focus on the higher margin segments of the business consistent with SkillSoft's long term growth and profitability objectives.
In connection with the transaction, SkillSoft will conform revenue recognition practices relating to all NETg agreements to pro-rata revenue recognition as well as net accounting for custom contracts where appropriate, consistent with SkillSoft's conservative financial reporting practices. Where some NETg contracts are converted from accelerated license based revenues to subscription, we will see a one time reduction in revenue as revenue recognized under converted contracts is pushed out to future periods. The purchase accounting impact of the transaction will cause the combined company to potentially lose a significant amount of NETg's balance sheet deferred revenue to goodwill. Finally, the combination will also result in some commercial overlap that will result in loss of revenue in the short term. This involves a select number of situations where the nature of our contract, such as an "all product inclusive" contract, will result in a renegotiation of fees, or where the combined offering for common customers drives a more attractive pricing structure according to our standard fee schedules. Accordingly, these factors, together with normal business transition issues and any decisions made to discontinue or divest operations relating to low margin and low growth product lines and channels of distribution, will impact the amount of revenue recognized under GAAP by SkillSoft on a going forward basis. SkillSoft anticipates the resulting reduction to NETg's historical revenue could be in the range of 25% to 35% excluding the impact of purchase accounting.

SkillSoft, in connection with the transaction, will also create intangible assets requiring a non-cash quarterly amortization expense, incur period expense transition costs and accrue for transaction and integration costs along with a purchase accounting adjustment requiring a reduction of deferred revenue mentioned above.

About SkillSoft
SkillSoft PLC (Nasdaq: SKIL - News) is a leading provider of e-learning and performance support solutions for global enterprises, government, education and small to medium-sized businesses. SkillSoft enables companies to maximize business performance through a combination of comprehensive e-learning content, online information resources, flexible learning technologies and support services.

Content offerings include business, IT, desktop and compliance courseware collections, as well as complementary content assets such as SkillSim(TM) simulations, KnowledgeCenter(TM) portals and online mentoring services. The Books24x7® division offers online access to more than 14,000 unabridged IT and business books in its collections, as well as book summaries, executive reports and best practices. Technology offerings include the SkillPort® learning management system, Search-and-Learn®, SkillSoft® Dialogue(TM) virtual classroom, SkillView® competency management software and the Enterprise Learning Connection Suite(TM), a set of platform-neutral modules that can be used to create learning programs tailored to business needs.

SkillSoft courseware content described herein is for information purposes only and is subject to change without notice. SkillSoft has no obligation or commitment to develop or deliver any future release, upgrade, feature, enhancement or function described in this press release except as specifically set forth in a written agreement.

SkillSoft, the SkillSoft logo, Ahead of the Learning Curve, SkillPort, Search-and-Learn, SkillChoice, Books24x7, ITPro, BusinessPro, OfficeEssentials, GovEssentials, EngineeringPro, FinancePro, AnalystPerspectives ExecSummaries, ExecBlueprints, Express Guide and Dialogue are trademarks or registered trademarks of SkillSoft PLC in the United States and certain other countries. All other trademarks are the property of their respective owners.

This release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements. Factors that could cause or contribute to such differences include the ability of SkillSoft to successfully integrate NETg's operations and employees; the ability to realize anticipates synergies and cost savings; competitive pressures; changes in customer demands or industry standards; adverse economic conditions; loss of key personnel; litigation; and the other risk factors disclosed under the heading "Risk Factors" in SkillSoft's Annual Report on Form 10-K for the fiscal year ended January 31, 2007 as filed with the Securities and Exchange Commission. The forward-looking statements provided by the Company in this press release represent the Company's views as of May 14, 2007. The Company anticipates that subsequent events and developments may cause the Company's views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this release.

COMPANY CONTACT:

Tom McDonald Chief Financial Officer (603) 324-3000, x4232
INVESTOR CONTACTS: Michael Polyviou/ Peter Schmidt FD (212) 850-5748
Investor Contact: Greg Porto
Press & Analyst Contact: Donna Keenan PR Manager 603-821-3211 Donna_keenan[at]skillsoft.com

Local Contact: Stefan Janssen, Geschäftsführer Central Europe, 0211/1643-420, stefan.janssen[at]thomson.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding SkillSoft Corporation's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.