General Atlantic snaps up UK's LTG in £800m deal
AIM’s Learning Technologies Group has agreed to be taken over in a £800m deal, it was confirmed on Wednesday, after being hit by "challenging" conditions.
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The provider of workplace digital training is being acquired by Leopard UK, a bidco set up by US private equity investor General Atlantic.
Under the terms of the recommended deal, LTG shareholders will receive 100p per share in cash, a premium of 34% to the stock’s closing price in September, at the start of the offer period. It values the business at around £802.4m.
LTG, which listed in 2011 and employs 5,000 people, said the "challenging" macroeconomic environment had seen companies cut discretionary spending, including learning and development budgets.
In September, it cut its full-year outlook after interim revenues fell 12%.
It outlined its long-term financial targets in 2022, but acknowledged on Wednesday: "In the context of a dynamic and challenging macroeconomic and uncertain business environment, LTG has not been able to deliver these targets, both in terms of organic revenue expectations and inorganic growth through an acquisition pipeline."
Senior independent director Simon Boddie: "[We] have undertaken a detailed process to assess the cash offer from General Atlantic, and believe that the terms appropriately value LTG and its future prospects.
"In a challenging macroeconomic and uncertain business environment for LTG, the cash offer represents an opportunity for shareholders to realise this attractive value."
Gil Badart, principal at General Atlantic, said: "The LTG team has built a high-quality business that enables critically important digital training, learning and talent development opportunities across workplaces globally.
"Atlantic Park's flexible mandate and capabilities will deliver a sustainable capital structure to LTG to best support the company in accelerating its strategy and enhancing its position across core markets."
The deal is expected to complete during the first quarter of 2025.
As at 1130 GMT, shares in LTG had jumped 7% at 98.2p.
Around 24% of the business is owned by chief executive Jonathan Satchell and chair Andrew Brode, who acquired the business in 2008 as Epic Group.