ATG’s Proxibid deal puts the marketplace beside the seller’s own platform

Auction Technology Group (ATG), the London-listed operator of 10 online marketplaces including LiveAuctioneers, Proxibid and BidSpotter, said on 22 October that it expects revenue of about $251m (£188m) for the year to 30 September, slightly ahead of company-compiled analyst expectations. Its pre-close trading update put the expected adjusted EBITDA margin just above 34.5%, inside the guidance range. It was the group’s first full-year update since Duncan Painter, previously chief executive of Omnicom Commerce and before that of Ascential, took over as chief executive on 5 May.

The same day, ATG announced that Proxibid, one of its Industrial & Commercial marketplaces, will become the exclusive third-party online marketplace for Jeff Martin Auctioneers (JMA) from 1 November. JMA is a heavy equipment auction house with 14 locations across the US. The exclusivity runs “alongside JMA’s own proprietary platform”, and extends a relationship that Proxibid says dates back more than a decade.

In the six months to 31 March, Arts & Antiques revenue grew 12.5% on a pro forma constant currency basis, driven by commission and value-added services, mainly atgShip shipping, according to ATG’s interim results. Industrial & Commercial revenue fell 1.8% at constant currency, to a reported $37.0m (£27.7m) against $89.1m (£66.6m) for Arts & Antiques, even though the industrial side handled $1.3bn (£972m) of the group’s $1.8bn (£1.35bn) gross merchandise value (GMV). ATG’s take rate on industrial GMV was 2.9%, against 17.7% in Arts & Antiques on a pro forma basis.

ATG’s growth sits with art and antiques, while its industrial marketplaces are defending a seller base in which some now run more than one online channel. The JMA agreement shows what that defense wins from a large seller with a platform of its own: exclusivity among outside marketplaces, not the whole of the seller’s online trade. Alongside it, ATG has said M&A is not required and is considering options for returning excess capital.

Growth on the arts side

ATG’s third-quarter update on 23 July reported pro forma constant currency revenue growth of 7.8% and raised full-year guidance to 5.5–6.5%, “driven principally by value-added services and by healthy commission revenue contributions from LiveAuctioneers and Chairish”, both part of Arts & Antiques. The rate of decline in Industrial & Commercial was consistent with the first half. Guidance had been 4–5% in April and 5–6% at the interim results in May.

In July ATG expected its margin to land at the bottom of its 34.5–35.5% range, reflecting the growth of lower-margin value-added services and a full year of Chairish revenue. In May it said it had reorganized as “one global commercial organisation”, for a full-year benefit of about $4m (£3.0m) in FY27.

“We are focused on strengthening our platforms, deepening our support for buyers and sellers, and converting that opportunity into sustained, profitable growth,” Painter said in July.

Exclusive, beside the seller’s own platform

In May ATG attributed the decline in Industrial & Commercial GMV and commission revenue in recent years to weak agricultural markets, “adoption of third party white labels by some of our customers which are being used in addition to ATG marketplaces” and a modest effect from early consolidation among auction houses. Agricultural GMV fell 27% in the half.

The JMA agreement sets out the relationship with a seller that runs its own platform. “Formalizing this partnership as our third-party marketplace partner alongside our own proprietary platform gives us a clear, focused path forward with a partner we trust,” Jeff Martin of JMA said. Painter described ATG’s role in the same terms: “We’re proud to be JMA’s third-party marketplace platform partner and remain focused on delivering a comprehensive platform and buyer reach that supports their business growth.”

ATG says its industrial sellers are loyal. More than 80% of Industrial & Commercial GMV comes from returning buyers, and 90% from sellers who have been on the platform for over five years, according to the interim results. The Proxibid replatforming is expected to be complete during FY27. After the migration, ATG says it will be able to apply Arts & Antiques lessons to Proxibid and to “make our white label a compelling choice for auction houses”.

Debt down and returns under review

ATG’s acquisition of Chairish cost total consideration of $89.2m (£66.7m). Its stated capital priorities run organic investment first, then cutting debt, then shareholder returns. The interim results said that “M&A is not required as part of the Group’s strategy”.

Adjusted net debt is expected at about 1.5 times adjusted EBITDA at the year end, down from 2.2 times at the end of FY25. The board “is considering options for returning excess capital to shareholders”, with more detail due with the full-year results on 24 November. ATG also says it took further actions over the summer to be able to invest for growth through 2027 into 2028, and expects FY27 to be in line with company-compiled analyst expectations, “a year of strong earnings growth”.

ATG goes into its 24 November results with its growth in Arts & Antiques, a first-half take rate of 2.9% in its industrial marketplaces and the rebuilt Proxibid not due for completion until FY27. Until then, JMA’s terms show what more than a decade of trading buys an industrial marketplace from a seller with its own platform: exclusivity among outside marketplaces, while the seller keeps its own. Once Proxibid is rebuilt, ATG has said, it aims to strengthen the white label it already offers auction houses.