Private equity firm TA Associates has decided to sell its holding in Auction Technology Group (ATG), marking significant changes for both firms.
- TA Associates is divesting its 12.6% share in ATG, valued at £84.4 million, completing a full withdrawal from the company.
- The shares are being sold at £5.50 each, reflecting a 30% decrease from the IPO price, highlighting shifts in market conditions.
- This transaction results in the resignation of Morgan Seigler, a managing director at TA Associates, from the ATG board.
- ATG has demonstrated robust financial growth, reporting a 13% revenue increase for the past year, enhancing its profitability.
TA Associates, a prominent private equity firm, has opted to sell its entire stake in Auction Technology Group (ATG), a company known for its software solutions in online marketplaces and digital auctions. The 12.6% stake, equivalent to 15,337,625 shares, is being sold for a total of £84.4 million. The decision to sell marks the complete withdrawal of TA Associates from ATG at a significant rate of £5.50 per share. This price represents a substantial 30% decrease from ATG’s initial public offering (IPO) price of 780 pence per share, indicating changing perceptions and conditions in the market.
As part of this transaction, Morgan Seigler, who serves as a managing director at TA Associates, will resign from his position on ATG’s board. This move follows the firm’s initial acquisition of ATG in 2020 from ECI Partners, during which it also brought Proxibid, an online marketplace previously owned by Primus Capital, under ATG’s operations.
ATG, which was listed on the London Stock Exchange in 2021, experienced a flourishing year for UK tech market listings. The company plays a crucial role in the global online art market, a sector valued at approximately $9.18 billion in 2022 after growing by over 50% since 2018. ATG is instrumental in facilitating the auction of diverse items ranging from art and antiques to industrial goods, operating extensively in both the UK and the US.
Financially, ATG has seen remarkable performance improvements. In February, the company reported a notable 13% increase in annual revenue, which totalled £135.2 million for the year ending September 2023. This revenue boost, coupled with a reduction in the cost of sales, has led to a 34% rise in operating profit, reaching £22.5 million. The firm’s shares showed resilience, initially dropping by 3% to 565 pence at market opening, but rebounding with a 10% increase to reach 604 pence.
TA Associates’ divestment from ATG underscores shifting dynamics in the investment landscape, as ATG continues to demonstrate strong market presence and financial growth.
