HgCapital Trust PLC Hg announcement on Ullink (6937X)
28 November 2017 - 6:05PM
UK Regulatory
TIDMHGT
RNS Number : 6937X
HgCapital Trust PLC
28 November 2017
Hg receives definitive binding offer from Itiviti to acquire
Ullink
28 November 2017
Hg, the Manager of HgCapital Trust plc (the "Company"), has
announced that it has received a definitive binding offer from
Itiviti, a company backed by Nordic Capital, to acquire Ullink, a
leading global provider of electronic trading and connectivity
solutions to the financial community. This proposed sale is subject
to French workers' council consultations, and customary approvals,
such as regulatory clearances. The terms of the transaction were
not disclosed.
The Company, whose shares are listed on the London Stock
Exchange, gives private and institutional investors the opportunity
to participate in all Hg's investments. The Company would realise
estimated cash proceeds of approximately GBP24.3 million on
completion of this transaction. This would represent an uplift of
GBP5.2 million (27%) or 14 pence per share over the carrying value
of GBP19.1 million in the Net Asset Value ("NAV") of the Company at
31 October 2017 which was based on the Directors' valuation as at
30 June 2017.
Based on the 31 October 2017 reported NAV (including the impact
of the revaluation of the carried interest provision), the
pro-forma NAV of the Trust is expected to be GBP677 million (or
1,813.0 pence per share). The Company's liquid resources available
for future deployment including all announced transactions are
estimated to be GBP208 million (31% of the pro-forma 31 October
2017 NAV). In addition, the Company has access to a GBP80 million
standby facility, which is currently undrawn.
28 November 2017: Hg has announced today that it has received a
definitive binding offer from Itiviti, a company backed by Nordic
Capital, to acquire Ullink. This proposed sale is subject to French
workers' council consultations, and customary approvals, such as
regulatory clearances. The terms of the transaction were not
disclosed.
Ullink provides mission critical electronic trading and
connectivity solutions to the financial community globally. Based
on its proprietary multi-asset trading technology and
infrastructure, the company serves 2,000 clients in 40 countries
and is acknowledged as a leader and innovator in the financial
technology space.
Hg initially invested in Ullink in 2014 and has been working
with the management of the company since 2014 to build a leading
FIX based trading community through strong organic growth and the
acquisitions of NYFIX and Metabit.
This original investment in Ullink by the Hg Technology Team
followed many years of experience in Hg's proven sector-focused
approach of investing in leading global providers of vertical
market application software. Ullink shares the core characteristics
that Hg looks for: it provides an excellent platform for growth
with a subscription revenue model across a diversified client base
with a proven commitment to innovation.
The realisation of Ullink would represent the second exit from
the Hg 7 (2013) Fund, following the sale of P&I in November
2016, which together with a number of refinancings completed across
the unrealised portfolio, has now delivered overall realised
returns of 2.6x and a 36% gross IRR. The Fund has now returned in
cash 41% of the original investment made.
This proposed transaction follows the successful exits over 2017
year-to-date of Zenith, QUNDIS, Parts Alliance, e-conomic, Zitcom
and Sequel Business Solutions, which have returned GBP1.3 billion
to investors with an overall 3.0x investment multiple / 35% gross
IRR. A number of further realisations from the Hg funds are
anticipated over the coming months.
Jonathan Boyes, Partner at Hg, said: "We are very pleased to
have achieved an outstanding result for both Ullink and our Hg
clients. This has been achieved through Ullink's transformational
merger with NYFIX and strong organic growth that followed as the
management team professionalised the combined business. We wish
Ullink's management and employees every success as they enter their
next phase of growth."
Jean-Baptiste Brian, Director at Hg, commented: "The proposed
realisation of Ullink follows a successful partnership with the
Company over the past 3 and a half years to build a leading global
provider of electronic trading and connectivity solutions to the
financial community both organically and through acquisition. We
would like to thank the management and employees of Ullink for
their outstanding work and effort to achieve this outcome."
Didier Bouillard, CEO at Ullink said: "The combination of Ullink
and Itiviti would create a world-leader in Capital Markets
technologies and services. Itiviti provides leading solutions in
connectivity, market making and trading, with considerable
expertise in the Derivatives space. Ullink's core competence in
High Touch and Low Touch OMS and our world-leading NYFIX network
complement Itiviti's solutions, and our capabilities in
connectivity create a global powerhouse unrivalled in the
industry."
Hg were supported by Credit Suisse, Skadden and Deloitte on the
sale.
- End -
For further details:
Hg
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 Hg, giving investors exposure to a portfolio of
high-growth private companies, through a liquid vehicle. New
investments and existing portfolio companies are managed by Hg, 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, Hg's, Nordic
Capital's, Itiviti's or Ullink'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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