LTG plans M&A spree to ward off bargain-hunting buyout firms

LONDON, March 22 (Reuters) – Learning Technologies Group (LTGL.L) is planning to buy a batch of technology-focused corporate training firms as part of a strategy to thwart unsolicited interest from private equity firms, CEO and co-founder Johnathan Satchell told Reuters.

The AIM-listed corporate education group, with a market value of 1 billion pounds, has been approached by bargain-hunting buyout funds in recent months, after market turbulence and gloomy economic conditions crushed technology shares, the CEO said.

But the company has not engaged in “any meaningful conversations” about going private and preferred to remain a public company, Satchell said.

LTG provides corporate training services, such as mobile apps and training videos, for airlines, government and other companies. Remote working and greater regulation have boosted demand for corporate learning.

Since hitting a peak of 1.85 billion pounds in market value in September 2021, LTG shares have slumped 46%, putting it in the sights of cash-rich private equity buyers.

The group, which operates in over 30 countries and employs about 5,000 people, is eyeing one or two U.S.-based acquisitions with a valuation of several hundred million pounds each this year, Satchell said, without identifying specific targets.

It has about 225 million pounds in cash and debt available for M&A over the next three years, he said. Its net debt/EBITDA ratio of 1x could be extended to up 1.5x for deals, he added.

The company could turn to investors for funds, provided any capital raising is not “too dilutive” to its share price, the CEO said.

He added he would prefer to finance any big-ticket deals via the equity markets, but mindful of tough market conditions, he would consider alternative financing options.

Chairman and co-founder Andrew Brode is LTG’s largest shareholder with a 14.8% stake. Brode directed requests for comment to LTG when contacted by Reuters.

LTG was listed in 2013 and has sold stock six times, buying more than 15 companies.

Company valuations in the private market have started to fall from pandemic highs in the last year, with software businesses now available at more “sensible prices”, Satchell added.

LTG is one of thousands of companies that banked with failed U.S lender Silicon Valley Bank. Around 10% of LTG’s 110.7 million pounds total cash and cash equivalents at March 10 were on deposit with Silicon Valley Bank and its UK subsidiary.

It said the collapse would not have a “material effect on its financial position.”

Satchell expected the fallout to create “nervousness” among learning technology firms already burning through cash, adding it could accelerate consolidation in the industry.

Reporting by Amy-Jo Crowley, editing by Sinead Cruise and Bernadette Baum

Our Standards: The Thomson Reuters Trust Principles.

Tags:

carphone-warehouse listed on couponmatrix.ukharrods listed on couponmatrix.uklogitech-2 listed on couponmatrix.ukpour-moi listed on couponmatrix.ukthe-big-sheep listed on couponmatrix.ukwilliam-hill listed on couponmatrix.uk
carphone-warehouse listed on couponmatrix.ukA name that's as synonymous with the mobile age as iPhones or Samsung, Carphone Warehouse are a long-standing brand with a history as extensive as the mobile phone itself. Offering comprehensive deals on over a dozen of the best mobile providers, you can use a Carphone Warehouse discount code to cut the cost of your monthly tariff. Whether you're looking for an entirely new contract, a SIM only deal or are simply looking for the latest tech for your phone, Carphone Warehouse should be your first and only choice.
harrods listed on couponmatrix.ukTreat yourself to a guilt-free spree at the world’s most famous department store and snap up a Harrods discount code from us to get your fix of premium products. Offering a diverse range of designer clothing for all the family, Harrods will have you dressed to the nines in the choicest fabrics and cuts. Kick your cosmetics bag into high gear with the stunning Harrods beauty range or spoil someone special with a delectable culinary hamper. If you’re looking for luxury items infused with timeless British style, Harrods will deliver the goods.
logitech-2 listed on couponmatrix.ukWhether you’re a tech guru or you’re taking your first steps into the world of computers and consoles, Logitech has an incredible range of products that are designed to streamline your life and keep you entertained. Be sure to apply a Logitech discount code when you’re making your next order and you’ll enjoy fabulous discounts across the different ranges of speakers, mobile devices, keyboards and more.
pour-moi listed on couponmatrix.ukIf you want to look your fabulous, beautiful best you will love the Pour Moi lingerie collection. Founded in a small office above a shop in Macclesfield, the brand has since expanded to a firm favourite for swimwear, nightwear and all things lingerie. Now based in Brighton, the online collection is teeming with beautiful designs with the simple goal of providing quality, affordable, fitted lingerie, no matter the size. With the Pour Moi discount code, you can enjoy looking and feeling your best for less. Treat yourself or others to some stunning lingerie today.
the-big-sheep listed on couponmatrix.ukRides, animals and local gigs aren’t usually three things you find together, yet The Big Sheep has it all. As North Devon’s largest all-weather attraction, families, couples and groups can indulge in an array if indoor and outdoor activities year-round. Get the lowest price on admission with a The Big Sheep discount code from Groupon and wind away hours in the Devonshire sun – whether it’s with your partner, your kids or your friends.
william-hill listed on couponmatrix.ukThere’s nothing quite like the fun and the thrill of a flutter. With more than 85 years in the game, William Hill has made a name for itself as one of the UK’s leading bookmakers, so grab yourself a William Hill promo code and save a pretty penny on the cost of your bet. Whether on the horses or the dogs, placing a little bet with William Hill is hardly a gamble; you’re practically guaranteed a good time!