Auction Technology Group Sold by TA Associates for $107.6 Million
Deal News | Dec 12, 2024 | Aim Group
TA Associates, a private equity group, announced the sale of its 12.6% stake in Auction Technology Group (ATG) for $107.6 million. The transaction involves the sale of 15,337,625 ordinary shares at £5.50 per share, representing a 30% reduction from ATG's IPO price in 2021. TA Associates, which originally acquired a stake in ATG from ECI Partners in 2020, sold a 5% holding earlier in June. This divestment follows its acquisition of online marketplace Proxibid, also in 2020. ATG, a company specializing in online auctions and digital marketplace software, operates in the UK and the US, helping auctioneers sell millions of items annually. In H1 2024, ATG reported revenue of $86 million, demonstrating a 7% year-on-year growth. The company's FY 2023 figures revealed total revenue of $172 million, alongside a 34% increase in operating profit to $22.5 million. With the completion of the sale, Morgan Seigler, managing director of TA Associates, will resign from ATG's board of directors.
Sectors
- Private Equity
- Online Auctions
- Software Development
Geography
- United Kingdom – Auction Technology Group is based in London and primarily operates in the UK market.
- United States – ATG operates in the US, particularly through its online marketplace Proxibid, which was originally based in Nebraska.
Industry
- Private Equity – TA Associates is a private equity firm involved in the acquisition and divestment of stakes in companies such as Auction Technology Group.
- Online Auctions – Auction Technology Group operates in the online auction industry, providing platforms and software for auctioneers globally.
- Software Development – ATG develops software solutions for digital marketplaces, crucial for its auction operations.
Financials
- 107.6 million – The sale price of TA Associates' 12.6% stake in Auction Technology Group.
- 5.50 – The price per share at which TA Associates sold its stake in ATG.
- 172 million – The fiscal year 2023 revenue of Auction Technology Group.
- 22.5 million – The operating profit of Auction Technology Group for FY 2023, a 34% increase.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Auction Technology Group | Target company | Company | A company specializing in online auctions and digital marketplace software, facilitating millions of item sales annually. |
| TA Associates | Selling company | Company | A private equity group that had a 12.6% stake in Auction Technology Group. |
| Morgan Seigler | Managing Director | Person | Managing director of TA Associates who will resign from the ATG board following the stake sale. |
| ECI Partners | Previous owner | Company | The firm from which TA Associates acquired ATG in 2020. |
| Polaris | Source | Company | The announcement of the sale was made according to a Polaris announcement. |