ATG Enhances Financial Flexibility with £159m Credit Facility
Deal News | Feb 17, 2025 | Business Cloud
Auction Technology Group plc (ATG) has announced a new £159 million revolving credit facility with a consortium of five top banks. This move follows the exit of its private equity investor, TA Associates, which sold its 12.6% stake in the company from a purchase made in 2020 at a 30% discounted IPO share price. The new credit facility has a four-year term with an optional one-year extension, replacing previous arrangements due to mature in 2026. The refinancing aims to enhance ATG's financial flexibility and extend its debt maturity. John-Paul Savant, CEO, expressed satisfaction with the refinancing, signifying lender confidence in ATG's business and strategic initiatives. Further, the company appointed Sarah Highfield as the new CFO, replacing Tom Hargreaves. ATG's latest annual results showed revenues of £135.2 million, up by 13%, and operating profit up by 34% to £22.5 million.
Sectors
- Financial Services
- Technology
Geography
- United Kingdom – The main company discussed, Auction Technology Group, is based in London, UK.
Industry
- Financial Services – Relevant due to the restructuring of financial facilities and private equity movement in ATG.
- Technology – ATG operates marketplaces for curated online auctions, reflecting its role in the tech-driven auction sector.
Financials
- £159 million – The amount of the revolving credit facility secured by ATG.
- £84.4 million – Sale proceeds from TA Associates' exit from ATG, representing a 12.6% stake.
- £135.2 million – Annual revenue reported by ATG for the year ending September 2023.
- £22.5 million – Operating profit reported by ATG, representing a 34% increase.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Auction Technology Group plc (ATG) | Operator of marketplaces for curated online auctions | Company | Target company in the article securing a new credit facility. |
| TA Associates | Selling Company | Company | Previous private equity owner of a significant stake in ATG. |
| ECI Partners | Previous owner | Company | The company from which TA Associates acquired ATG. |
| John-Paul Savant | CEO of ATG | Person | Leading spokesperson for ATG regarding the refinancing. |
| Sarah Highfield | CFO of ATG | Person | Recently appointed CFO replacing Tom Hargreaves. |
| Tom Hargreaves | Former CFO of ATG | Person | Stepped down to join a private equity-backed company. |