Private equity firm TA Associates is selling its stake in London-based Auction Technology Group (ATG) for £84.4m. 

The investor owns a 12.6% stake in ATG, amounting to 15,337,625 ordinary shares. TA Associates has agreed to sell the entirety of its interest in the company at a price of £5.50 per share, down 30% from the tech firm’s IPO share price of 780p. 

Following the sale, TA Associates managing director Morgan Seigler will resign from the ATG board of directors. 

The private equity firm acquired ATG in 2020 from ECI Partners alongside its acquisition of online marketplace Proxibid from Primus Capital. The deal brought Proxibid under the ATG umbrella. 

In June, TA Associates lowered its stake in the company from 17.6% to 12.6%. 

ATG develops software for online marketplaces and digital auctions. It claims to facilitate the sale of 20 million items at auction annually ranging from art and antiques to industrial and commercial equipment. 

The global online art market was valued at an estimated $9.18bn in 2022, up 53% from 2018. 

The firm operates in the UK, with significant activity overseas, particularly in the US through its Nebraska location, the previous base for Proxibid. 

The company was listed on the London Stock Exchange in 2021 – a bumper year for tech listings in the UK markets. 

In February, the group reported a 13% increase in annual revenue for the year ended September 2023, reaching £135.2m. The revenue surge alongside a slight drop in the cost of sales boosted ATG’s operating profit by 34% to £22.5m. 

ATG shares dropped around 3% from 565p at the opening of trading on Thursday before climbing almost 10% to 604p. 

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