ECI scores 3.7x on ATG sale to TA

Greg Gille
14 February 2020

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TA Associates has acquired online auction platform Auction Technology Group (ATG) from ECI Partners and Mobeus.

In parallel, TA also acquired Proxibid from Primus Capital. Proxibid is an online marketplace for connecting buyers and sellers in North America. The companies will be brought under the ATG umbrella with headquarters in London, but will retain operations in Omaha, Nebraska, where Proxibid is headquartered.

ECI reaped a 3.7x money multiple on its 2014 investment. It also reinvested in the combined entity for a minority stake.

Mobeus has now fully exited the business following an 11-year holding period. The ATG sale represents a return of 4.5x the total £9m investment for the Mobeus VCTs, equating to a 29% IRR.

Morgan Seigler and Stefan Dandl from TA Associates will join the ATG board of directors.

Previous funding
Mobeus supported the management buyout of ATG in 2008, investing £4.5m to back the spin-out of the company from the Daily Mail Group. The GP notably made an add-on investment of £4.5m in 2013 to finance the acquisition of US-based online auctions site BidSpotter.

ECI bought ATG Media in 2014. The GP drew capital from its ninth fund to support the original transaction; the £430m vehicle held a final close in 2008. The deal enabled Mobeus to realise part of its investment, with the partial exit generating an IRR of more than 20%. Following the transaction, Mobeus retained a significant minority stake in ATG.

The investment was intended to continue the company's international acquisitive expansion strategy pursued under Mobeus's tenure.

Company
Established in 1971 as auctions publication Antiques Trade Gazette, ATG now operates five digital marketplaces globally (thesaleroom.com, i-bidder.com, BidSpotter.com, BidSpotter.co.uk, and Lot-tissimo.com). It powers live and timed auctions across multiple verticals including art and antiques, classic cars, industrial & commercial, and consumer retail returns.

The business is based in London and employs 140 people.

People
TA Associates – Morgan Seigler (managing director); Stefan Dandl (senior vice-president).
ECI Partners – Tom Wrenn (partner).
Mobeus – Ed Wass (portfolio director).

Advisers
Equity – Travers Smith (legal); Alvarez & Marsal (financial due diligence).
Company, vendors – Squire Patton Boggs (legal); GCA Altium (corporate finance); Wilson Sonsini (legal); Vaquero Capital (corporate finance).