London-based Learning Technologies Group (LTG) is set to agree to a 792 million pounds ($1.06 billion) takeover bid by U.S. private equity firm General Atlantic if a formal offer is made, the corporate education group said on Friday.
Shares of LTG, which listed in 2013 closed 28.2% higher at 96 pence.
LTG, which provides corporate training tools including mobile apps and training videos, said its board was inclined to recommend the proposed offer of 100 pence per LTG share if General Atlantic makes a firm offer on those financial terms.
LTG said that the proposed offer has an option for shareholders to elect for an unlisted equity alternative which provides an opportunity to re-invest their shareholding and co-invest in General Atlantic’s unlisted acquisition vehicle.
The company has entered into discussions with General Atlantic and has also provided the private equity firm access to due diligence.
The proposal follows earlier approaches from General Atlantic to the board of LTG, the company added.
The group, which operates in more than 30 countries across North and South America, Europe, the Asia-Pacific, the Middle East and Africa, was also approached by bargain-hunting buyout funds, it said last year.
LTG’s CEO and co-founder Jonathan Satchell told Reuters last year that the group is planning to buy a number of technology-focused corporate training firms to ward off unsolicited interest from private equity firms.
LTG has seen a hit to its revenue in the last year as a weaker economy has prompted companies to reduce overall spending on learning and talent development.
General Atlantic did not immediately respond to a Reuters request for comment.
Source: Reuters.com