SumTotal buys Pathlore for $48 mn

SumTotal Systems Inc, a provider of learning and business management technologies and services, has announced that it has completed the acquisition of privately-held Pathlore Software Corporation for approximately $48 million.

Pathlore shareholders received around $28 million in cash and four million shares of SumTotal's common stock.

SumTotal has also entered into a $22.5-million Senior Secured Credit Facility with Wells Fargo Foothill Inc, to finance in part, the acquisition, provide for ongoing working capital needs and other general corporate purposes.

This facility includes a term loan of $17.5 million repayable over four years and a revolver of $5 million, a press release said.

The acquisition of Pathlore helps SumTotal to increase its market share, with more than $100 million in expected annualised revenue and approximately $10 million in expected annual cash flow.