HgCapital Trust PLC Sale of Sequel (5611O)
21 August 2017 - 10:00PM
UK Regulatory
TIDMHGT
RNS Number : 5611O
HgCapital Trust PLC
21 August 2017
HgCapital Trust Plc
21 August 2017
HgCapital Trust adds to NAV per share from sale of Sequel
HgCapital, the Manager of HgCapital Trust plc (the "Company"),
has announced that it has sold Sequel Business Solutions
('Sequel'), a provider of software and services to the Lloyd's of
London and the broader insurance markets, to Verisk Analytics
(Nasdaq: VRSK), a leading data analytics provider serving customers
in property/casualty insurance, natural resources, and financial
services, headquartered in Jersey City, NJ USA.
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 GBP20.2 million on
completion of the transaction. This represents an uplift of GBP12.5
million (161%) or 33 pence per share over the carrying value of
GBP7.7 million in the Net Asset Value ("NAV") of the Company 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 GBP659.2 million or 1,766.2 pence per share. The
Company's liquid resources available for future deployment are
estimated to be GBP177 million (27% 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 1 Fund agrees sale of Sequel Business
Solutions to Verisk Analytics
21 August 2017, London: HgCapital is pleased to announce that it
has sold Sequel Business Solutions ('Sequel'), a provider of
software and services to the Lloyd's of London and the broader
insurance markets, to Verisk Analytics (Nasdaq: VRSK), a leading
data analytics provider serving customers in property/casualty
insurance, natural resources, and financial services. Headquartered
in Jersey City, NJ USA, Verisk Analytics operates in 29 countries
and is a member of Standard & Poor's S&P 500(R) Index.
HgCapital partnered with the management of Sequel in July 2014
to support the acquisition from its founder. The deal represented
the fourth investment for the Mercury 1 fund and resulted from
HgCapital's ongoing focus on the insurance software sector.
Led by CEO Mario Garcia and with HgCapital's support, Sequel has
transformed over this period. Its core Eclipse product set has been
broadened to a full suite supporting all the complex risk
activities of insurers and brokers, including risk aggregation,
claims management and re-insurance; customer numbers have tripled;
and Sequel's business model has rapidly transitioned to recurring
revenue. Over the past three years, the company has seen compound
revenue growth of 14% per annum.
Following this sale, the Mercury 1 Fund will have delivered
combined returns of 3.0x of invested cost and a c. 44% gross IRR on
all realised investments, including proceeds from the prior sales
of Zitcom to Intelligent (announced in June 2017 for 3.3x and 141%
gross IRR) and Relay Software to Applied Systems (announced in
August 2016 for 2.1x cost and 39% gross IRR). The Mercury 1 Fund
has now delivered in aggregate 83% of invested cost on all realised
investments.
Mario Garcia, CEO of Sequel, said: "I would like to thank
HgCapital for being a great partner as we developed Sequel into the
leading provider of software to the complex insurance market. They
had a transformative impact on our business. We are thrilled to
join Verisk, whose data and technology capabilities will allow us
to continue to deliver first class service to our customers."
Sebastien Briens, Partner at HgCapital, commented: "We are
delighted that Sequel can continue to flourish with such a strong
and capable partner. We are proud to have been associated with
Mario and his team in driving the growth of Sequel in the past
three years, and believe that the business is very well positioned
to be successful within the property/casualty insurance
markets."
HgCapital and Sequel were advised by Quayle Munro, Linklaters
and Deloitte.
- Ends -
For further details:
HgCapital
Laura Dixon +44 (0)20 7089 7888
Maitland
Tom Eckersley +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,
Sequel's, nor Verisk Analytics' 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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