Learning Technologies Group PLC on Wednesday recommended a £802 million takeover from a private equity firm.

The London-based digital learning and talent management firm will be bought out by GASC ABF LP and some of its managed or advised funds, a grouping collectively referred to as General Atlantic.

General Atlantic will pay 100 pence in cash per Learning Technologies share, a 34% premium to the 74.9p share price on September 26, the day before the private equity suitor’s interest was revealed.

Learning Technologies shares rose 6.7% to 98.14 pence each on Wednesday morning in London, giving it a market capitalisation of £776.2 million.

The bid gives Learning Technologies a £802.4 million equity value. The enterprise value, including debt, is £836.3 million.

‘General Atlantic has a long and successful track record of investing in the technology sector and it has leveraged this experience to help develop some of the most widely known online learning platforms in the e-learning industry, including Duolingo, Kahoot!, Fluency Academy, Arco, Crehana, Panorama Education, Articulate, Zoomin, Quizlet, Unacademy, Ruangguru and Little Golden Star,’ a statement said.

General Atlantic said Learning Technologies required further investment and optimisation to navigate a changing market, and would function best ‘as a private company without the external pressures placed on a publicly owned company’.

Learning Technologies in September said it would back the roughly £800 million proposal should an official bid be forthcoming.

The acquisition is expected to be completed in the first-quarter of 2025.

Copyright 2024 Alliance News Ltd. All Rights Reserved.