Global growth investor General Atlantic announced Wednesday that it has agreed to acquire Learning Technologies Group PLC (LTG), a U.K.-based workplace training provider, for £836 million ($1.1 billion). The acquisition will be executed through Leopard UK Bidco Ltd., a special purpose acquisition company managed by General Atlantic.

This strategic move underscores General Atlantic's commitment to expanding its presence in the corporate e-learning sector, a market valued at $22.2 billion in 2023 and projected to grow to $46 billion by 2030.

The Deal: Two Offer Options for LTG Shareholders

General Atlantic has presented LTG shareholders with two cash-based alternatives:

• Option 1: A payment of £1 per share, reflecting a 34% premium over LTG's closing price of 74.9 pence on Sept. 26.
• Option 2: Shareholders can convert part of their proceeds into new equity in the post-sale enterprise, though these "rollover shares" will not be listed.

The equity portion of the deal is valued at £802.4 million, with the remaining sum accounting for debt and the sale of LTG's vendor management business, VectorVMS.

The acquisition will proceed under a court-approved scheme of arrangement, as stipulated by Part 26 of the U.K.'s Companies Act 2006. Completion is anticipated in the first quarter of 2025, contingent upon approval from at least 75% of LTG shareholders.

Legal and Financial Advisors

General Atlantic is advised by Paul Weiss Rifkind Wharton & Garrison LLP, with financial guidance provided by PJT Partners and HSBC Bank. Meanwhile, DLA Piper is representing LTG, with a team led by partner Charles Cook, alongside several key colleagues. Goldman Sachs and Deutsche Numis serve as LTG's joint corporate brokers and financial advisers.

Strategic Goals and Market Outlook

Gil Badart, a principal at General Atlantic, emphasized the firm’s intent to leverage its expertise to foster LTG’s growth. “We will deliver a sustainable capital structure to LTG to best support the company in accelerating its strategy and enhancing its position across core markets,” he stated.

LTG, which serves over 6,000 organizations worldwide with its 5,000-strong workforce, is poised to benefit from growing corporate training demands, including adapting to AI-driven workplace transformations.

Statista projects the global e-learning market will experience annual growth of nearly 11%, positioning LTG for continued success despite rising competition.

A Reshaped Future

LTG's leadership has expressed confidence in the deal's valuation, with senior independent director Simon Boddie noting that the cash offer "represents an opportunity for shareholders to realize this attractive value." However, the board has refrained from recommending a specific offer.

General Atlantic has a history of supporting innovative e-learning platforms like Duolingo and Kahoot!, reflecting its alignment with LTG's mission. Recent General Atlantic investments include an $825 million infusion into Vuori and a $500 million round for marketing platform Insider.

With this acquisition, General Atlantic solidifies its position as a key player in the rapidly evolving digital learning landscape.