TIDMHGT
RNS Number : 0660I
HgCapital Trust PLC
14 June 2017
14 June 2017
HgCapital Trust adds to NAV per share from sale of Zitcom at
3.3x cost
HgCapital, the Manager of HgCapital Trust plc (the "Company"),
has announced that it has sold Zitcom, a leading Danish hosting and
cloud solutions provider operating in the SME segment, to
Intelligent, a Belgian headquartered provider of hosting services.
The terms of this transaction were not disclosed.
The sale of Zitcom delivers a c. 3.3x investment multiple and a
c. 145% gross IRR over the investment period.
The Company, whose shares are listed on the London Stock
Exchange, gives private and institutional investors the opportunity
to participate in all HgCapital's investments. The Company will
realise cash proceeds of approximately GBP8.8 million on completion
of the transaction. This represents an uplift of GBP4.4 million
(101%) or 12 pence per share over the carrying value of GBP4.4
million in the Net Asset Value ("NAV") of the Trust at 31 May 2017
which was based on the Directors' valuation as at 31 December
2016.
Based on the 31 May 2017 reported NAV (including all announced
transactions and the revaluation of the carried interest
provision), the pro-forma NAV of the Company is expected to
increase to GBP621.2 million or 1,664.4 pence per share. The
Trust's liquid resources available for future deployment are
estimated to be GBP146 million (24% of the pro-forma 31 May 2017
NAV).
The investments within the Company's portfolio were last valued
at 31 December 2016. The Company's 2017 interim results, including
the re-valuation of the portfolio as at 30 June 2017 will be
announced on 11 September 2017.
HgCapital's Mercury Fund sells Zitcom Group to Intelligent
-- Exit has delivered a c. 3.3x investment multiple and c. 145%
gross IRR after 18 months of ownership
-- Second exit from HgCapital's specialist lower mid-market
Mercury TMT fund, which has delivered aggregate realised returns of
c. 2.8x and c. 70% gross IRR
-- The GBP380m Fund made its first investment in 2012; and has
returned c. 40% of invested capital back to clients
14 June 2017, London: HgCapital is pleased to announce that it
has sold Zitcom Group, a leading Danish SME-focused hosting and
cloud solutions provider, to Intelligent, a Belgian headquartered
provider of hosting solutions. The terms of this transaction were
not disclosed.
HgCapital partnered with the management of Zitcom Group in
December 2015, representing the 7(th) investment for Mercury,
HgCapital's specialist lower mid-market TMT fund. This exit marks
the second full realisation for the Mercury fund, following the
sale of Relay announced in August 2016 and four prior successful
recapitalisations across the portfolio.
Through organic growth and acquisitions, Zitcom Group has
created a leading Danish SME focused hosting and cloud solutions
provider with activities in both the mass and managed hosting
space, including domains website hosting, email for smaller
customers and managed servers and applications for larger
customers. The group has demonstrated over ten years of consistent
revenue growth and provides cloud services to over 100,000 business
and private customers in Denmark, operating under the brands
Zitcom, Wannafind, UnoEuro, Curanet, ScanNet and Cloud.dk.
The business displays many of the characteristics that HgCapital
looks for including: an attractive growth sector; a loyal customer
case; a strong management team; and platform potential for
M&A.
During HgCapital's 18-month ownership period, HgCapital has
supported Zitcom Group's acquisition and integration of four
companies which has helped double the customer base and revenue
while close to tripling profits of the Group.
Following this sale, the Mercury 1 Fund will have returned
nearly 40% of invested cost, including proceeds from the prior exit
of Relay Software (announced in July 2016 for 2.1x cost / 39% gross
IRR) and a combination of other portfolio company refinancings. The
Fund has delivered overall realised returns of c. 2.8x cost and a
c. 70% gross IRR.
Stefan Rosenlund, CEO of Zitcom Group, said: "HgCapital has been
a fantastic partner for Zitcom Group and has helped us mature -
both as a business and as individuals. HgCapital has been a huge
asset in developing Zitcom Group into a strong and market leading
hosting group ready for new challenges and new ownership. I thank
HgCapital for the trust and time that they have invested in us and
look forward to continue Zitcom Group's growth journey in the
Danish SME hosting market."
Nick Jordan, Director at HgCapital, said: "It has been a
pleasure to partner with the Zitcom Group management team and
employees over the last 18 months and play a role in building a
leader in the Danish SME hosting segment. They have transformed
their sector in Denmark. We wish them continued success in this
exciting new phase of their story"
HgCapital were advised by Harris Williams, Linklaters and
Accura.
- Ends -
For further details:
HgCapital
Laura Dixon +44 (0)20 7089 7888
Maitland
Tom Eckersley +44 (0)20 7379 5151
Seda Ambartsumian +44 (0)20 7379 5151
About HgCapital Trust plc
HgCapital Trust plc is an investment trust whose shares are
listed on the London Stock Exchange (ticker: HGT.L). The Company is
a client of HgCapital, giving investors exposure to a portfolio of
high-growth private companies, through a liquid vehicle. New
investments and existing portfolio companies are managed by
HgCapital, an experienced and well-resourced private equity firm
with a long-term track record of delivering superior risk-adjusted
returns for its investors. For further details, please see
www.hgcapitaltrust.com.
Neither the contents of HgCapital Trust's, HgCapital's, Zitcom
Group's, nor Intelligent's websites nor the contents of any website
accessible from hyperlinks on the websites (or any other website)
is incorporated into, or forms part of, this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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June 14, 2017 05:55 ET (09:55 GMT)
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