General Atlantic, a leading global growth equity firm, has reached a $1 billion agreement to acquire the UK-based Learning Technologies Group (LTG). This deal, valued at approximately £800 million, underscores General Atlantic’s commitment to expanding its portfolio in the education technology and corporate training sectors.
About Companies Involved:
Learning Technologies Group (LTG):
LTG is a digital learning and talent management company specializing in workplace training solutions. Since its founding in 2013, LTG has grown through acquisitions, becoming a significant player in the eLearning market. It offers services that range from custom content development to SaaS-based platforms for learning and talent management. In the first half of 2024, LTG reported revenues of approximately £250 million but faced a 12% decline compared to the previous year, signaling challenges in market conditions.
General Atlantic:
Founded in 1980, General Atlantic manages $83 billion in assets and focuses on investments in sectors like technology, healthcare, and financial services. It is renowned for backing high-growth companies such as Alibaba and ByteDance. The firm has recently shown increased interest in EdTech, evident from its acquisition of Norwegian educational platform Kahoot earlier this year for $2 billion.
Deal Structure and Strategic Implications:
General Atlantic’s offer, priced at £1 per share, represents a premium over LTG’s recent trading value. The transaction includes an option for LTG shareholders to reinvest in an unlisted vehicle, providing continuity and potential growth opportunities post-acquisition. LTG’s leadership has indicated willingness to recommend the bid, with advisory support from Goldman Sachs and Deutsche Numis.
For General Atlantic, the acquisition aligns with its strategy to capitalize on the rapidly growing demand for digital learning solutions. This move strengthens its position in the corporate training market, which is increasingly driven by hybrid work models and the need for scalable, technology-driven education platforms.
Conclusion:
The acquisition marks a significant milestone for both companies. It allows LTG to leverage General Atlantic’s resources for long-term growth while enabling the private equity firm to deepen its investments in transformative EdTech solutions. This development reflects broader trends of consolidation in the education technology sector, as firms seek to scale rapidly to meet evolving market demands.