Investments

BPLI Holdings Inc. (BPLI) is the publicly listed holding company for its two wholly owned operating divisions, Bluedrop Training and Simulation Inc. and Bluedrop Learning Networks Inc. to which it provides management oversight and shared corporate and financial services. BPLI’s mandate is to grow its investments in the training and eLearning sectors, through both organic growth and through strategic acquisitions.

Our Investments

Bluedrop Training & Simulation Inc. (BTS) is a leader is in providing training and simulation services and products to the Canadian Security and Defence Sector where it designs and develops highly specialized, high performance, tactical training for front line operators of equipment working in complex environments and high-risk situations. This includes, training systems needs analysis, custom courseware development, virtual simulation training devices, and ongoing training support for in service support. BTS has several long term contracts with an extensive list of Tier one OEMs such as Boeing, Lockheed Martin and Sikorsky. This division was bolstered through the acquisition of Atlantis Systems Corp. in late 2013 and reported revenues of over $17 million in 2019. View Website

 

Bluedrop Learning Networks Inc. (BLN) is a Software as a Service (SaaS) based provider of workforce systems solutions that tackle unemployment, worker safety and credential management for skilled trades. Its clients include a variety of workforce investment boards, apprenticeship authorities, government agencies, NGOs, workers’ compensation boards and commercial customers. It is focused on building its recurring revenue streams by adding larger scale clients to multiyear programs. BLN’s reported revenues of over $5 million in 2019.View Website

Value Creation

Financial results are reported on a consolidated basis with segmented reporting for operating companies. Consolidated results can be misunderstood if the underlying operating companies are not understood from a value creation perspective.

Bluedrop Training & Simulation Inc.

Bluedrop Training & Simulation Inc. targets growth in services to the defense and security sector for large OEMs and Tier 1 contractors while expanding its business internationally for crew-based simulators. We believe value creation is based on growth of high margin proprietary technology sales and a sustained services business using an earnings or EBITDA multiple.

Bluedrop Learning Networks Inc.

The Bluedrop Learning Networks business targets growth in the Compliance & Skills Development for government and workplace sector agencies based on its proprietary SaaS-based platform. We assess value creation based on growth of annual recurring revenue (ARR) and customer retention. The business generally does not have positive earnings during the development and growth phase as it builds future cash flow streams.

Our Strategy

STRATEGIC INVESTMENTS IN ELEARNING AND TRAINING

Through its two major investments in eLearning and Training technology, BPLI offers shareholders exposure to a common theme with massive secular growth drivers, namely workplace learning. However, our two divisions have very different risk/reward profiles, which we believe offers some downside protection against the risks inherent with high growth technology ventures. Our strategy is to grow both operations to be the leaders in their respective markets and to maximize shareholder value.

ORGANIZED TO MAXIMIZE FLEXIBILITY AND VALUE CREATION

BPLI Holdings Inc. reorganized its operating companies in 2014 to split its two operating divisions into separate legal entities. It further segmented the operating companies in 2019 with separate executive leadership and independent operating teams. We believe this structure gives us the flexibility to create long term shareholder value by either funding each division individually or collectively. Additionally, we believe this structure should open more options for strategic value creation from potential acquirers and investors.

 

STRONG PREDICTABLE BACKLOG WITH SAAS UPSIDE

BPLI Holdings believes it has a unique investment proposal for anyone in the emerging workforce systems marketplace. We offer exposure to a strong and predicable cash generating business in the defence training and simulation market. At the same time, our SaaS-based eLearning division has considerable upside potential as we continue to scale the operation into large enterprise accounts.