TIDMATG
RNS Number : 3505N
Auction Technology Group PLC
29 September 2021
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED
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BE UNLAWFUL.
29 September 2021
Auction Technology Group plc
("ATG", the "Company")
Acquisition of LiveAuctioneers: Update re CMA clearance
ATG provides the following update on the progress of the
acquisition of Platinum Parent, Inc., the holding company of
LiveAuctioneers (the "Acquisition"). ATG has now received all
antitrust and regulatory clearances required ahead of completion of
the Acquisition, including clearance by the UK Competition and
Markets Authority ("CMA").
The Acquisition is now expected to complete shortly, subject to
the delivery of certain customary closing documentation. ATG will
provide a further update once the Acquisition has completed.
John-Paul Savant, CEO of ATG, said:
"We are incredibly excited to welcome LiveAuctioneers to ATG.
This is a significant milestone that will enhance our ability to
support the transformation of the auction industry in its
structural shift to online, and brings exciting new opportunities
to further enable auctions to play their part in accelerating the
growth of the circular economy. We look forward to working with a
well-respected and experienced team, allowing us to widen our
existing expertise and deliver further value to auctioneers, those
who consign to auctioneers, and bidders.
"This combination will enable more auction houses to thrive in
an increasingly digital world, extending their reach to bidders
globally, and bring bidders access to millions of items. We will
have a combined and growing network of c. 3,800 auction houses, c.
800,000 bidders, and host c.70,000 auctions per year. Through
further building our presence in the large and rapidly growing US
arts and antiques market, and adding technology capability and
scale, we look forward to continuing to strengthen our partnership
with auctioneers in the years ahead."
Transaction highlights:
LiveAuctioneers is a leading curated online North American Arts
& Antiques ("A&A") Marketplace. As set out in previous
announcements, the Acquisition transforms the reach, capabilities
and efficiencies of ATG's platform, adding momentum to ATG's growth
trajectory, generating significant value for the auction industry
and providing strong returns to ATG's shareholders.
-- The Acquisition adds a leading A&A marketplace in North America to ATG's growing portfolio:
o Expands the ATG network, adding LiveAuctioneers' c.1,600
auctioneers, 120,000 bidders and greater than $2 billion of Total
Hammer Value.
o Enables ATG to access the US A&A segment, a new and
attractive geography for ATG: twice the size of the UK A&A
segment, with an online segment forecast to grow at a c.22% CAGR
FY19-FY23.
o Pleased to welcome LiveAuctioneers' management team to ATG, a
strong team with a similar culture, with mutual benefits from
respective areas of investment and expertise.
-- The Acquisition is positive for the future of the auction industry and all stakeholders:
o The auction industry is going through a structural shift from
offline to online and ATG is well positioned to help facilitate
this transformation.
o The auction industry plays an important role in accelerating
the growth of the circular economy with the evolution of online
auctions supporting the market for second-hand goods.
o LiveAuctioneers is a highly complementary business which
provides valuable reach and additional capabilities, enabling ATG
to deliver more value to auctioneers, consignors and bidders.
o Improves the end-to-end customer experience for A&A
auctions and accelerates the buildout of an online auction
ecosystem that will benefit all stakeholders via the addition of an
integrated payments solution.
o Payments, back-office, and marketing solutions can more
efficiently be made mutually available to ATG's and
LiveAuctioneers' partner auction houses.
-- The Acquisition will accelerate ATG's growth strategy and
value creation opportunities and is consistent with the strategy
communicated by management at IPO.
o Important step in ATG's M&A strategy, building out a
presence in a key geography and accelerating ATG's launch of
value-add services, helping develop standards to enable auctioneers
to compete with eCommerce giants.
o ATG believes that the Acquisition will be very materially
earnings accretive in the financial year ending 31 September 2022
and that the Acquisition will enhance the Combined Group's growth
and margin profile.
o In line with previous guidance, the Directors believe the
Combined Group will deliver mid-teens plus revenue CAGR in the
medium term (pro forma from FY19).
Enquiries
ATG
For investor enquiries investorrelations@auctiontechnologygroup.com
For media enquiries press@auctiontechnologygroup.com
Tulchan Communications +44 207 353 4200
(Public relations advisor ATG@tulchangroup.com
to ATG)
Tom Murray, Sunni Chauhan,
Matt Low
Numis Securities Limited
(Sponsor and Joint Financial
Adviser) +44 207 260 1205
Nick Westlake, Matt Lewis,
William Baunton
J.P. Morgan Securities plc
(Joint Financial Adviser) +44 207 742 4000
Bill Hutchings, Barry Meyers,
James Summer
Important Notice
This announcement is for information purposes only and does not
constitute a prospectus or prospectus equivalent document. Nothing
in this announcement shall constitute an offer or invitation to
underwrite, buy, subscribe, sell or issue of the solicitation of an
offer to buy, sell, acquire, dispose or subscribe for shares of any
other securities. Nothing in this announcement should be
interpreted as a term or condition of the Acquisition.
The information contained in this announcement is for background
purposes only and does not purport to be full or complete. No
reliance may be placed for any purpose on the information contained
in this announcement or its accuracy or completeness. The
information in this announcement is subject to change.
This announcement may include "forward-looking statements". All
statements other than statements of historical facts included in
this announcement, including, without limitation, those regarding
the Company's financial position, business strategy, plans and
objectives of management for future operations (including
development plans and objectives relating to the Company's products
and services) are forward-looking statements.
Forward-looking statements are subject to risks and
uncertainties and accordingly the Company's actual future financial
results and operational performance may differ materially from the
results and performance expressed in, or implied by, the
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These forward-looking statements speak only as at the date of
this announcement. The Company expressly disclaims any obligation
or undertaking to update or revise any forward-looking statements
contained herein to reflect actual results or any change in the
assumptions, conditions or circumstances on which any such
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