US private equity firm General Atlantic has agreed to acquire Learning Technologies Group (LTG) for £802.4m ($1bn).
LTG will be acquired by Leopard UK, a bidco established by General Atlantic for this purpose.
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LTG, known for its corporate training tools such as mobile apps and training videos, has faced challenges due to the rapid evolution of generative AI and companies shifting away from custom content creation to cut costs, reports Reuters.
General Atlantic stated that LTG would need further investments to adapt to the changing landscape and compete effectively.
General Atlantic’s portfolio already includes educational technology companies such as Duolingo, India-based Unacademy, and Kahoot!, a game-based learning platform.
In September, LTG expressed willingness to agree to a deal with General Atlantic if a formal offer was made.
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By GlobalDataUnder the agreement, LTG shareholders will receive 100 pence per share in cash, a 34% premium to the stock’s closing price on 26 September 2024, the day before General Atlantic’s interest became public.
LTG’s independent directors intend to unanimously recommend the deal to shareholders.
LTG, listed in 2011 and employing 5,000 people, has faced a “challenging” macroeconomic environment, leading to cuts in discretionary spending, including learning and development budgets.
The company reduced its full-year outlook in September following a 12% decline in interim revenues.
LTG chair Andrew Brode said: “Over the last eleven years as a listed company, LTG has undergone a strategic transformation to become a global leader in learning and talent development. The hard work and dedication of a highly talented and driven group of people has enabled this achievement.
“The Group now employs 5,000 people and helps more than 6,000 organisations around the world to transform their own workforce. We are pleased that General Atlantic is aligned to this important purpose and will partner with colleagues on this mission going forward.”
General Atlantic principal Gil Badart stated, “We are excited to partner with LTG on its continued transformation journey and look forward to leveraging our deep technology and industry expertise to enable the company to achieve its long-term growth ambitions.”
The deal is expected to complete during the first quarter of 2025.
LTG is among a growing number of firms being delisted from the London Stock Exchange, reported The Guardian.
Recently, car parts supplier TI Fluid Systems agreed to a £1.04bn takeover by Canada’s ABC Technologies, while cafe bar business Loungers accepted a £338m bid from Fortress Investment Group, a US private equity firm.
