US private equity giant General Atlantic has agreed to acquire Learning Technologies Group (LTG) for £802.4m ($1bn), reflecting growing corporate demand for training solutions as companies adapt to artificial intelligence, according to a report by Reuters.
Under the agreement, LTG shareholders will receive 100 pence per share in cash, representing a 34% premium to the stock’s closing price on September 26, the day before General Atlantic’s interest was disclosed.
LTG shares surged by as much as 7% following the announcement, reaching their highest level since June 2023. The company had signalled in September its openness to a deal with General Atlantic if a formal offer was made.
LTG, a provider of corporate training tools such as mobile apps and training videos, has faced challenges from the rise of generative AI and a shift among businesses away from custom content creation to cut costs.
General Atlantic sees the acquisition as an opportunity to invest in LTG’s product offerings and enhance its ability to compete in an evolving market. The firm noted that LTG would need further innovation to address disruptions posed by AI and other industry challenges.
The private equity firm, which already owns stakes in prominent educational technology companies like Duolingo, India’s Unacademy, and the game-based learning platform Kahoot!, views LTG as a natural addition to its portfolio.
We believe LTG’s expertise and offerings can thrive with the right investments and strategic focus,” the firm stated, emphasising the potential for long-term growth in corporate training as businesses recalibrate for technological shifts.
