TIDMHGT
RNS Number : 6147G
HgCapital Trust PLC
30 March 2022
Hg, the Manager of HgCapital Trust plc ("HGT"), today announces
an investment in IFS and WorkWave.
The terms of the transaction are not disclosed. The investment
is subject to regulatory approval and customary closing
conditions.
HgCapital Trust plc will invest approximately GBP114.2 million
in IFS and WorkWave, with other institutional clients of Hg
investing alongside HGT through the Hg Saturn Funds.
HGT, whose shares are listed on the London Stock Exchange, gives
private and institutional investors the opportunity to participate
in all Hg's investments.
Note that these figures only relate to HGTs share of Hg's
overall investment in IFS and WorkWave.
HGT's liquid resources available for future deployment
(including all announced transactions, equity raised via tap
issuance and undrawn bank facility) are estimated to be GBP318
million (16% of the pro-forma 28 February 2022 NAV of GBP2.0
billion).
The investment will reduce HGT's outstanding commitments to
invest in Hg transactions to approximately GBP792 million (40% of
the pro-forma 28 February 2022 NAV).
Hg joins EQT and TA Associates as investors in IFS and
WorkWave
-- Hg will become a significant minority investor, in a
transaction valuing IFS and WorkWave at $10bln USD.
-- EQT to remain the majority shareholder, with TA as a significant minority shareholder.
-- EQT, Hg, and TA will form a trio of world-class investors
with decades of software experience, backing IFS and WorkWave for
their next wave of growth.
London, England - March 30, 2022 - IFS , the global cloud
software company, today announced that Hg, a leading software and
services investor, has agreed to become a significant minority
shareholder in IFS and WorkWave. Long-term investor EQT remains the
majority shareholder, with Hg and TA Associates as significant
minority shareholders. The transaction values IFS and WorkWave at
$10bln USD and sets both companies up to further grow their
position as leading players in growing sectors.
IFS is the software vendor for organizations who want to
differentiate on service. The IFS Cloud platform is fully
composable, with a broad industry depth, and packed with innovation
so that companies can be their best when it matters to their
customers - at the Moment of Service. With thousands of the world's
most respected brands as customers, IFS is a recognized provider
across multiple sectors including Service Management (both Field
Service Management and Enterprise Service Management), Enterprise
Asset Management (EAM) and Enterprise Resource Planning (ERP).
WorkWave's suite of products empower service-oriented companies in
its target verticals to reach their full potential through
scalable, cloud-based software solutions that support every stage
of a business life cycle, including marketing, sales, service
delivery, customer interaction and financial transactions.
Following consecutive years of consistent growth at both IFS and
WorkWave, the combined investment from EQT, TA and Hg, an investor
with over 20 years' focus on software business across Europe and
North America, will help the companies further accelerate growth
organically and inorganically through acquisition.
Darren Roos, CEO of IFS and Chairman of WorkWave, said: "We're
proud to have built two amazing software brands - and we continue
to go from strength-to-strength. We are structured to scale, we
have outstanding technology, and our people and partners remain
obsessed with our customers' success. These have been the
foundations of our success at both IFS and WorkWave, and now with
the additional backing and software expertise of Hg alongside EQT
and TA, we have the ability to accelerate even faster."
Nic Humphries, Senior Partner and Head of the Saturn funds at
Hg, said: "We have spent well over 20 years with a strong focus on
enterprise software. As a result we have followed IFS' success for
several years and recognize it as a very high-quality cloud
business. Its consistent performance and growth are a result of a
compelling and differentiated proposition, built by a strong
management team led by Darren. Both IFS and WorkWave offer very
strong cloud products in verticals which are growing rapidly and we
therefore see clear runway for sustained growth for the
business."
Johannes Reichel, Partner at EQT added: "IFS is well positioned
to take advantage of several global thematic trends, including
customer wanting to digitalize their core operations enabling them
to deliver even better service to their customers as well as more
sustainable usage of their resources and assets. We believe there
are long-term growth opportunities that IFS can capitalize on,
especially with the combined support of EQT, Hg and TA helping fuel
growth."
Naveen Wadhera, Managing Director at TA, said: "As industries
and enterprises push to digitize and streamline their core
operations, it presents even greater opportunity for innovative
software leaders. We have been impressed by IFS' and WorkWave's
strategic response to this market opportunity and believe the
companies are well positioned for sustainable, accelerated growth,
with a focus on strengthening product capabilities and expanding in
targeted industry verticals. We are thrilled to continue supporting
the development journey of IFS and WorkWave, together with Darren
and the management team, EQT and now Hg."
The transaction is subject to customary conditions and approvals
and is expected to close during Q3 2022.
Arma Partners acted as exclusive financial adviser to the
sellers on this transaction alongside White & Case (legal),
Kirkland & Ellis (legal) and PwC (financial and tax).
For further details:
Hg
Tom Eckersley +44 (0)208 148 5401
HgCapital Trust
Laura Dixon +44 (0)20 8396 0930
Brunswick
Samantha Chiene +44 (0)207 404 5959
Hg@brunswickgroup.com
About HgCapital Trust plc
HgCapital Trust plc, whose shares are listed on the London Stock
Exchange (ticker: HGT.L), gives investors exposure through a liquid
vehicle to a portfolio of high-growth private companies in the
software and services sector. The selection of new investments and
creation of value in these businesses 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.
The contents of the Hg, HgCapital Trust, IFS, EQT and TA's
websites are not incorporated into, and do not form part of, this
announcement.
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