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.

tui listed on couponmatrix.ukastley-clarke listed on couponmatrix.ukdents listed on couponmatrix.ukmicro-scooters-uk listed on couponmatrix.uksoletrader listed on couponmatrix.uk999inks listed on couponmatrix.uk
tui listed on couponmatrix.ukFrom staycations to beach holidays, travel starts with TUI. Whether you’re into city-hopping or sinking into a sun lounger, sampling local cuisine or indulging with all-inclusive, TUI holidays are an experience everyone should get to enjoy. You can find some amazing travel deals and book a TUI hotel, flight or both at once, and there’s a range of TUI cruises that’ll take you across entire continents. When you’re ready to wave goodbye to the rain (unless that’s your thing), make a quick stop at Groupon for the latest TUI discount codes to save double or even triple digits on holiday packages across the globe: from Tenerife to Tokyo. Every once in a while, we all need a little escape, so shake out the sunscreen, pack your bags and get ready to live life in the slow lane with TUI.
astley-clarke listed on couponmatrix.ukSeamlessly splendid, turn to Astley Clarke when you want jewellery that adds a delicate touch. Crafting their immaculate creations using only noble metals, precious gemstones and natural diamonds, there’s no doubt using an Astley Clarke discount code will guarantee you a great deal on quality jewellery. Be it for a birthday, anniversary or just because, you can trust the experts at Astley Clarke to offer you the gift you want at a price you won’t turn down.
dents listed on couponmatrix.ukDents can be traced back to 1777 when their founder, John Dent, created a company specialising in hand-crafting some of the finest leather gloves in England. Over 2 centuries later, Dents products are still created using the unique hand cutting and stitching techniques they perfected when the company was born. With a Royal Warrant granted to Dents in 2016, you can be confident that your Dents voucher code will save you money on the most luxurious, high-quality gloves, wallets, belts, and more.
micro-scooters-uk listed on couponmatrix.ukFast, fun and affordable, Micro Scooters are a blast for kids of every age. With a helpful array of stunt, luggage and electric scooters to suit every need, you can help your child secure their new favourite toy for less with a Micro Scooters discount code from Groupon. Bolstered by a welcome range of adult scooters, product bundles, customisation options and accessories, the whole family can explore a new world of possibilities on two wheels at Micro Scooters.
soletrader listed on couponmatrix.ukWhen you look at their upbeat, tasteful, contemporary stores and the designer footwear inside them it’s hard to believe that Soletrader have been around for over half a century. Ever since the heady days of the early 1960’s they’ve been making feet look and feel fabulous, and the Sole Trader discount code will help you make huge strides upgrading your shoe collection without spending a fortune. Designer names meet in-house innovation here, and you’ll find both British and international names gracing the shelves, guaranteeing you’ll find something you love.
999inks listed on couponmatrix.uk999inks.co.uk is the UK's leading online retailer for printer ink cartridges and toners. They offer a wide range of products from major brands like HP, Canon, Epson and Brother, as well as compatible and remanufactured cartridges. With a wide range of products from ink and toner cartridges to stationery and paper, you can get all you need from 999inks.co.uk! And with our 999inks.co.uk coupon code, you can save even more on your purchase!