TIDMHGT
RNS Number : 0716O
HgCapital Trust PLC
08 June 2022
Hg, the Manager of HgCapital Trust plc ("HGT"), today announces
a recapitalisation of The Access Group, a leading provider of
business management solutions to mid-market organisations in the
UK, Ireland and Asia Pacific.
As part of the transaction, Hg Saturn Funds will make a new
investment in The Access Group, while Hg's Genesis 8 Fund will
partially reduce its holding. As a result of the transaction, HGT
will receive a net distribution of GBP55.6 million.
This transaction values HGT's existing investments in The Access
Group at GBP441.1 million. This would represent an uplift of
GBP104.7 million (31%) or 22.9 pence per share over the carrying
value of GBP336.4 million in the Net Asset Value ("NAV") of HGT at
31 March 2022.
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 The Access Group.
Based on the 31 March 2022 reported NAV, the pro-forma NAV of
the Trust is expected to be GBP2.1 billion (or 452.1 pence per
share). HGT's available liquid resources, which includes the
undrawn bank facility of GBP250 million for future deployment, are
estimated to be GBP436 million (21% of the 31 March 2022 pro-forma
NAV of GBP2.1 billion).
The investment will reduce HGT's outstanding commitments to
invest in Hg transactions to approximately GBP617 million (30% of
the pro-forma 31 March 2022 NAV).
THE ACCESS GROUP ANNOUNCES SUBSTANTIAL INVESTMENT
TO DRIVE CONTINUED EXPANSION AT GBP9.2 BILLION VALUATION
-- Secures continued backing from its largest shareholders and
experienced software investors, Hg and TA Associates
-- Enterprise value of GBP9.2 billion
-- Secures new refinancing including incremental facility for
over GBP1 billion to support further strategic acquisitions
LONDON, UK - 8 June 2022 - The Access Group, a leading provider
of business management software to mid-market organisations in the
UK, Ireland and Asia Pacific, today announced further investment
from its shareholders, Hg and TA Associates, with an associated
enterprise value of GBP9.2 billion, believed to make it one of the
largest UK headquartered software providers.
Access has grown significantly since its incorporation in 1991,
delivering uninterrupted profitable growth in the last 15 years.
Since 2020, Access has more than doubled in size driven by
double-digit organic growth, combined with strategic M&A in the
UK, Ireland and Asia Pacific. Access has grown its customer base to
more than 60,000 and its employees to approximately 5,000,
expanding internationally with offices in nine countries.
The announcement of the further strategic investment from Hg, a
leading software and services investor, and TA Associates, a
leading global growth private equity firm, is significant. In
addition, GIC, a global institutional investor, has confirmed a new
investment in Access and that it will become a minority shareholder
in the company. The transaction, which is subject to customary
regulatory approvals, is expected to close in the second half of
2022.
Commenting on today's announcements, Chris Bayne, CEO of The
Access Group, said: "I'm incredibly proud of our continued success
and delighted that our leading investors, Hg and TA, continue to
support us as the company expands in the UK, Ireland and Asia
Pacific. With GIC's additional investment, Access continues to
receive strong support from the investment community, helping to
drive our performance and growth plans.
"We have made massive progress in our growth strategy since we
announced the last investment from Hg and TA in 2020. Hg and TA's
further investment in Access signifies our business and team's
strength. We look forward to expanding and continuing our
relationship with all three of our investors as we carry on with
organic and acquisitive growth projects and further geographic
expansion.
"Over the next few years, the management team and I will
continue to focus on our growth strategy and our products and
solutions, especially Access Workspace, our SaaS platform, which
allows our customers' products and data to be consumed in one place
with a consistent user experience.
"The acquisition facility gives Access the power for even more
significant expansion as we continue to add exciting new technology
and people to the Group. It's our mission to transform our
customers' productivity and give them the freedom to do more of
what's important to them."
Jonathan Boyes, a Partner at Hg, said: "Access has proved to be
one of the biggest UK successes in cloud software. Chris and his
team should feel incredibly proud of their achievements, delivering
an exceptionally robust performance whilst significantly growing
the business during a tough environment over the last few years. It
has been a pleasure to work with the team and we're delighted to
commit further as a significant investor in the business. Hg is now
a proud investor in three of the largest private equity-owned
software businesses in Europe and we're more excited than we've
ever been about the future prospects of the role of SaaS in the
business world."
J. Morgan Seigler, a Managing Director at TA Associates, said:
"Over the course of TA's more than seven-year partnership with
Access, the business has continually shown its strength, resilience
and capacity for innovation, driven by the leadership of Chris and
the management team. We have been proud to support the journey and
are thrilled to further our partnership. Looking ahead, we believe
the business is well-positioned to continue delivering on its
vision, focusing on strengthening product offerings, both
organically and through strategic acquisitions, for its growing
customer base."
Rothschild & Co advised The Access Group and Arma Partners
advised Hg on the transaction. Legal advisors were Latham &
Watkins, Linklaters, and Travers Smith. Deloitte and Kirkland &
Ellis advised The Access Group on the refinancing activities.
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, TA, GIC and The Access
Group's websites are not incorporated into, and do not form part
of, this announcement.
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