Auction Technology Group Share News (ATG)

(Alliance News) - Auction Technology Group PLC has moved a step closer in its bid to purchase LiveAuctioneers after it announced Wednesday that its takeover bid has been cleared by the UK's Competition & Markets Authority.

In June, the online auction operator said it had agreed to buy Platinum Parent Inc, the holding company of New York-based arts and antiques marketplace LiveAuctioneers, for an enterprise value of USD525 million.

London-based Auction Technology said it has now received all antitrust approvals for the deal, with the purchase set to close shortly, on delivery of some remaining documentation.

"We are incredibly excited to welcome LiveAuctioneers to Auction Technology," commented Chief Executive John-Paul Savant.

"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."

The acquisition will be funded through debt financing of around USD204 million and USD19 million through key LiveAuctioneers management rolling no less than 35% of their existing holding into Auction Technology shares, the company said. The remainder will be financed from the placing of 20.0 million new shares.

The stock was up 2.8% at 1,330.00 pence early Wednesday. Auction Technology listed on the Main Market in February at 600p per share, and the stock has more than doubled in value since. The company now has a GBP1.58 billion market capitalisation and joined the FTSE 250 index of London mid-caps in June.

By Will Paige; willpaige@alliancenews.com

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