The 3P Learning Ltd (ASX: 3PL) share price is soaring in morning trade, up by 6.72% to $1.35.
This comes following the ASX education software company reporting on a merger this morning alongside a key resignation.
What did 3P Learning report on a merger?
3P Learning shares are moving higher this morning after the company reported its intent to merge with Blake eLearning Pty Ltd.
The merger, intended to create a leading EdTech platform (MergeCo), will see 3PL acquire 100% of the equity in Blake for an all-share purchase price equivalent of $185 million. 3PL stated it will issue 137 million shares at $1.35 per share. That's 7.14% above Friday's closing price of $1.26 per share.
Blake is a privately owned Australian based company that provides online educational tools for young children through to year 10 students.
3PL stated that the two companies have identified "significant synergies and strategic cost efficiencies" in the range of $7.5 to $12.5 million annually.
Commenting on the merger, 3PL chair Sam Weiss said:
The proposed merger provides an opportunity to unite two complementary businesses with a long-standing relationship which, if approved, should propel 3PL's current growth trajectory and broaden its customer reach.
The merger still requires shareholder approval of more than 50% at a general meeting the company expects to take place in mid to late May. The 3PL board is unanimously in favour of the merger.
3PL CEO resigns
In a separate announcement this morning, 3PL reported it has accepted the resignation of the company's CEO and managing director, Rebekah O'Flaherty.
O'Flaherty will remain in her role for the next two months, working with Sam Weiss during the transition period for the acquisition of Blake.
Commenting on O'Flaherty's departure, Weiss said:
In the five years of her tenure as CEO, Rebekah has overseen a major transformation of our company with the overhaul of our technology platform, the modernisation of digital engagement tools and improvements to our product offer.
3P Learning share price snapshot
Over the past 12 months, the 3P Learning share price has gained around 53%. By comparison, the All Ordinaries Index (ASX: XAO) is up 31% over that same time.
Year to date, the 3P Learning share price is up 3%
