Learning Technologies Group is planning to ward off any potential takeovers by buying a batch of technology-focused corporate training firms, according to its CEO.
Johnathan Satchell, who also co-founded the AIM-listed education group, told Reuters the £1bn company has been approached by bargain-hunting buyout funds in the wake of market turbulence and the gloomy outlook.
Satchell, however, said the company is not in “any meaningful conversations” about going private and prefers to remain public.
Operating in over 30 countries and employing about 5,000 people, the company is eyeing one or two US-based acquisitions this year worth hundreds of millions of pounds each.
Learning Technologies has roughly £225mln in cash and debt available for M&A over the next three years, Satchell said.
The company could turn to investors for funds, provided any capital raising is not "too dilutive" to its share price.
He added he would prefer to finance any big-ticket deals via the equity markets, but remains mindful of tough market conditions.
After listing in 2013, Learning Technologies has bought more than 15 companies.
With valuations in the private market starting to fall from pandemic highs, Satchell believes more software businesses are now available at “sensible prices.”