TA Associates is offloading its entire stake in Auction Technology Group (ATG) for £84.4 million, signaling notable changes within the company’s structure.
- TA Associates will sell 12.6% of ATG, comprising 15,337,625 shares, at £5.50 per share.
- This sale represents a 30% decrease from ATG’s initial public offering price.
- Following the sale, Morgan Seigler will step down from the ATG Board of Directors.
- ATG saw a 13% increase in annual revenue, with growing profits despite share price fluctuations.
TA Associates, a prominent private equity firm, has confirmed it will sell its entire stake in the Auction Technology Group (ATG), a company specializing in software for online marketplaces and digital auctions. This transaction, valued at £84.4 million, involves the sale of 15,337,625 ordinary shares, which accounts for 12.6% of the company’s total equity. The agreed sale price of £5.50 per share marks a significant 30% drop from the company’s IPO share price, which was initially set at 780 pence.
Founded in London, ATG has grown its operations significantly on an international scale, particularly noted for its activities in the United States through its Nebraska base, formerly the headquarters of Proxibid. Proxibid was acquired by TA Associates in 2020, and this acquisition was instrumental in bolstering ATG’s presence in the U.S. market. The company claims to facilitate the sale of 20 million items annually, ranging from art and antiques to industrial equipment, highlighting the broad scope of its auction platforms.
In a noteworthy development from the corporate side, Morgan Seigler, managing director at TA Associates, is set to resign from his position on the board of directors following the completion of the sale. This move signals a shift in governance as TA Associates withdraws its investment and board involvement.
Despite the lower sale price of its shares, ATG has reported robust financial performance. The company recorded a 13% increase in annual revenue, totaling £135.2 million for the fiscal year ending in September 2023. Further, their operating profit witnessed a significant rise of 34%, reaching £22.5 million, supported by revenue growth and a reduction in the cost of sales.
The share market responded with volatility; ATG shares initially dropped around 3% to 565 pence at the start of trading, but rebounded with a 10% climb to 604 pence. This fluctuation highlights the dynamic nature of investor sentiment following such corporate announcements.
The strategic sale by TA Associates marks a substantial realignment within Auction Technology Group amid robust financial growth.
