ELMO, an Australian software company that streamlines HR processes, has announced it has acquired e-learning solutions company Techniworks in what was claimed to be a "multi-million dollar deal".
While the exact value of the acquisition was not disclosed, ELMO said that its revenues will increase to AU$18 million in the 2017 financial year due to the merger.
Founded in 2002, ELMO offers an integrated talent management system that includes solutions for recruitment, onboarding, learning, performance, succession planning, and leave management.
The acquisition of Techniworks, which provides pre-built e-learning solutions in line with legislation, compliance and training, and development needs, builds on ELMO's talent management proficiency, which it said will strengthen its ability to deliver end-to-end e-learning to over 2 million users in 500 organisations across Australia and New Zealand.
Danny Lessem, CEO of ELMO, said, "The addition of Techniworks is a key part of ELMO's ongoing growth strategy. This acquisition will further enable ELMO to deliver essential e-learning capabilities and increase strategic value with clients."
"This acquisition builds on the foundation of the ELMO business and will allow us to develop and expand our reach even further," Lessem added.
ELMO, which operates on a Software-as-a-Service (SaaS) model, has experienced a 40-50 percent year-on-year increase in license revenue. The company said it was able to maintain this rate of growth because 93 percent of its revenue comes from recurrent license fees.
In the last five years, ELMO has grown from 20 to over 100 employees throughout Australia, New Zealand, and Singapore.
ELMO has exclusive partnerships with the Australian Human Resources Institute and the Human Resources Institute of New Zealand.