Private equity firm TA Associates is exiting its investment in London-based Auction Technology Group (ATG) by selling its £84.4m stake.
- TA Associates is divesting its entire 12.6% stake, equating to over 15 million shares, in ATG.
- The shares are priced at £5.50 each, a 30% decrease from ATG’s IPO share price.
- The sale leads to the resignation of Morgan Seigler from ATG’s board.
- ATG has significantly boosted its revenue and profit, despite market fluctuations.
Private equity entity TA Associates has embarked on the sale of its investment stake in Auction Technology Group, a company headquartered in London, for a sum of £84.4 million. This transaction marks the firm’s exit from a 12.6% ownership, comprising precisely 15,337,625 ordinary shares of the company.
TA Associates decided to offer its shares at a price of £5.50 each, which notably represents a 30% decline from the share price at the company’s initial public offering (IPO), which stood at 780p. This sale decision also brings about a change in leadership, with Morgan Seigler, Managing Director at TA Associates, stepping down from the board of directors at ATG.
The investment journey began in 2020 when TA Associates acquired ATG from ECI Partners, alongside the acquisition of Proxibid, an online marketplace, from Primus Capital. These strategic acquisitions aligned with TA Associates’ intent to consolidate and expand ATG’s operational framework. The synergy created under the ATG umbrella highlights the firm’s vigorous expansion into digital auction platforms.
Auction Technology Group, known for its specialised software in online marketplaces, supports the annual sale of 20 million items through auctions. These items range broadly, encompassing art, antiques, industrial, and commercial equipment sectors. The company also demonstrates a substantial global presence, particularly evidenced by its operations in the United States, originating from Proxibid’s location in Nebraska.
In the financial year concluding September 2023, ATG reported a commendable 13% enhancement in annual revenue, amounting to £135.2 million. The resulting increase in revenue, paired with a slight reduction in cost of sales, spurred a 34% growth in operating profit, totalling £22.5 million. The market’s response saw ATG shares initially dip by approximately 3% to 565p before experiencing a rebound, climbing nearly 10% to close at 604p.
TA Associates’ strategic divestment underscores the dynamic nature of investment decisions in the tech sector.
