Another London-listed firm goes private as deals bonanza accelerates

Another London Stock Exchange-listed firm waved through a take-private deal today in the latest of a torrent of exits from the City’s bourse this year.

Learning Technologies, an AIM listed edtech company, agreed to an £836m takeover from US private equity behemoth General Atlantic, making it one of 45 listed companies to sell-up or enter talks with a suitor this year.

According to numbers compiled for City AM by Peel Hunt, the total value of take-private deals has now reached a record £52bn in value. 

Including exits from the London Stock Exchange and companies swapping their listing to overseas markets, the total value of companies leaving the market is set to top £100bn this year, according to previous figures from Peel Hunt.

In a statement, General Atlantic criticised the cumbersome reporting requirements associated with a London listing and said Learning technologies would be best placed to grow “without the external pressures placed on a publicly owned company”.

The investment firm called out the “frequent public financial reporting requirements and the associated governance, cost and regulatory burdens” that come with the public markets.

London’s take-private bonanza has hit record levels this year (£bn)

Learning Technologies was worth £1.8bn at its peak in 2021 but suffered as its corporate clients reined in spending on educational tools. The company said in a “challenging macroeconomic and uncertain business environment” the cash offer “represents an opportunity for LTG shareholders to realise this attractive value”.

The offer marks a 34 per cent premium on its trading price prior to the offer period in September.

London’s AIM market has felt the brunt of exits this year, with the total number of companies on the market shrinking to below 700 for the first time since 2001, according to accountancy firm UHY Hacker Young. A total of 16 AIM-listed firms have been bought by private companies since the beginning of the year.

The exodus of listed companies triggered fresh calls for reform this week, with the new Lord Mayor of London, Alistair King, calling on the prime minister to “look again” at the stamp duty on UK share trading.

Nik Storonsky, the founder and chief executive of Revolut, said the charge meant listing in London was not a “rational” choice compared to the US.