Alithya acquires learning and development firm Vitalyst

Alithya, a Montreal-headquartered management and technology consulting firm, has acquired Vitalyst, a Philadelphia-based firm specializing in learning and development solutions for Microsoft applications, for $64.1 million.

Vitalyst works with Fortune 1000 clients on boosting user proficiency and productivity on Microsoft apps. The Microsoft Gold Partner currently supports more than 350 business applications through its proprietary, subscription-based “Adaptive Learning” platform.

Vitalyst has more than 165 professionals and supports more than 400 clients in 20+ countries in over 10 languages. The firm had $33.7 million in revenue in 2021 and adjusted Ebitda of $12.9 million.

Alithya’s acquisition of Vitalyst, which completed last month, will enhance the firm’s revenue mix with a new high-margin, subscription-based recurring revenue stream.

Alithya also hopes to capitalize on a growing learning and development market – especially in cloud technology and digital – as companies struggle with thin talent pools and shifts to remote work.

“Vitalyst's blue-chip customer base, and its virtual Adaptive Learning platform, provide strong bases for continued success in the years to come,” said Paul Raymond, CEO of Alithya. “In a world of growing reliance on digital technologies and a shortage of qualified personnel, the capacity to accelerate the development of the existing and future workforce will be one of many strategic differentiators for Alithya and its clients.”

Alithya last year acquired R3D Conseil, a Montreal-based IT consultancy with 600 employees, for $76 million. The firm also in 2021 bought Askida, a Montreal IT consultancy with more than 110 employees, for $16 million.

"I am very excited for Vitalyst to be joining Alithya, a growing world-class organization that also enjoys a highly-valued Microsoft partnership,” said Barry O’Donnell, CEO of Vitalyst. “This represents an opportunity for our existing clients to benefit from Alithya's Microsoft expertise while enabling Alithya customers to leverage our Adaptive Learning platform to accelerate their digital transformation.”

Alithya has more than 3,600 people across offices in Canada, the US, and Europe. The firm provides consulting in business strategy, application services, enterprise solutions, and data and analytics.

The firm reported a revenue increase of 55.4% in Q3 2022 to reach $109.7 million.