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:

jarlo-london listed on couponmatrix.ukliz-earle listed on couponmatrix.ukmillets listed on couponmatrix.ukpapa-johns listed on couponmatrix.ukrac listed on couponmatrix.ukslingsby-interiors-ltd listed on couponmatrix.uk
jarlo-london listed on couponmatrix.ukJarlo is a London-based brand that creates beautiful clothing. Combining elements of nostalgia with contemporary fabrics and intricate detailing to create something unique. We believe that fashion should be fun, and our Jarlo discount code is the perfect way to save on your next order! Whether you're looking for a new dress or a statement piece, we've got you covered. At Groupon, we know that saving money is important to our customers. That's why we work hard to find the best discount codes and deals for Jarlo. We want you to be able to get the most out of your purchase, and our team is constantly on the lookout for ways to help you save. So be sure to check back often for the latest Jarlo discount code to get the best deal possible! Thanks for shopping with us! One of the best-selling products is the Mika Cowl Front Maxi Dress, with strappy back detail, perfect for formal occasions. If you're looking for a discount on Jarlo, then you've come to the right place! We've got a great selection of Jarlo products at amazing prices. And with our Jarlo London discount code, you can save even more! So what are you waiting for? You don't want to miss these offers!
liz-earle listed on couponmatrix.ukUncover the beauty secrets of Liz Earle and reveal your inner glow. Inspired by the power of nature, every Liz Earle product is designed to improve the appearance of skin for all women. Shop the indulgent collection with one of our exclusive Liz Earle offers and add a little luxury to your skincare routine for less. Discover Liz Earle’s bestseller - the Cleanse and Polish Hot Cloth Cleanser - and put its 125 skincare awards to the test. Home of world famous toners, cleansers and moisturisers, invite Liz Earle into your beauty regime and discover your glow.
millets listed on couponmatrix.ukFor over a century, Millets has been synonymous with outdoor wear, starting life in 1893 when J.M Millet opened stores in Southampton and Bristol. Today Millets has 97 stores nationwide and is still regarded as one of the best destinations on the high street for camping and outdoor adventure gear. Pick up a Millets discount code and save a pretty penny on everything you need for your next expedition!
papa-johns listed on couponmatrix.ukDiscover the best pizzas in town with Papa John’s. Creating deep-pan American-style pizzas for more than 30 years, Papa John’s know how to transform mealtimes and satisfy a hungry tummy. With beautiful recipes and fast delivery, you can use your Papa Johns promo code to receive a perfect pizza for a perfect price. Whether you’re having a party or getting in from a late night, there’s no better choice of food for your festivities than a Papa John’s pizza.
rac listed on couponmatrix.ukRAC offers comprehensive breakdown cover throughout the UK, so you can trust RAC to keep you on the move. Get covered for less with a RAC deal from us and you can enjoy peace of mind knowing you’ve chosen the best in the business. No one wants to be hampered by breakdowns or unexpected car costs – make car troubles a thing of the past with RAC.
slingsby-interiors-ltd listed on couponmatrix.ukSlingsby is a UK based company that sells office commercial and industrial workplace materials. They offer a wide range of products at competitive prices, including anything from ladders and storage cupboards to PPE and office supplies. Use a Slingsby discount code to get the best deals on essential provisions for your workplace. So regardless of if you’re beginning a new start-up or expanding your business to new locations, you’ll find all you need to succeed with Slingsby. If you're looking for a great deal on office supplies, then you need to check out Slingsby. They offer a wide range of products at competitive prices, and you can use a Slingsby voucher code from Groupon to get even more savings. With our codes, you can secure savings on stationery, storage and furniture alike – so you can craft the ideal office space for a fraction of the price. One of the top-performing Slingsby products is their selection of chairs. They have a wide variety of styles to choose from, and you can use a Slingsby voucher code to get a great deal when buying in bulk. Be it a new chair for your home office or a whole selection of seats for a new warehouse, you’ll find seating solutions in all shapes, sizes and price at Slingsby.