TIDMHGT
RNS Number : 1171Y
HgCapital Trust PLC
07 May 2019
Hg, the Manager of HgCapital Trust plc ("the Company"), today
announces that it plans to invest in Litera Microsystems
("Litera"), a leading provider of end-to-end document lifecycle
solutions to the legal and life sciences industries worldwide,
headquartered in Chicago. Terms of the transaction are not
disclosed.
HgCapital Trust plc will invest approximately GBP32.1 million in
Litera, with other institutional clients of Hg investing alongside
the Company through the Hg Genesis 8 Fund.
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.
Note that these figures only relate to HgCapital Trust's share
of Hg's overall investment in Litera.
Based on the 31 March 2019 NAV, the Company's liquid resources
available for future deployment, including all announced
transactions and the dividend paid on 30 April 2019, are estimated
to be GBP88 million (11% of the pro-forma 31 March 2019 NAV of
GBP790.7 million). In addition, the Company has access to an GBP80
million standby facility, which is currently undrawn. The
investment will reduce the Company's outstanding commitments to
invest in Hg transactions over the next two to three years to
approximately GBP354 million.
Hg invests in Litera Microsystems
Transaction will be Hg's sixth legal and compliance business in
the current portfolio
7 May 2019. Hg announces today that it will invest in Litera
Microsystems ("Litera"), a leading provider of end-to-end document
lifecycle solutions to the legal and life sciences industries
worldwide, headquartered in Chicago. Terms of the transaction are
not disclosed.
Based in London, Munich and New York, Hg is a specialist private
equity investor focused on software and service businesses,
committed to building businesses that change the way we all do
business, through deep sector specialisation and dedicated
operational support.
Litera has developed a leading suite of legal document
productivity applications, delivered as an end-to-end platform to
more than 1,300 organisations across the globe. Based in Chicago,
New York and London, Litera provides a suite of best-in-class
productivity tools that help customers to focus on what matters:
creating the highest quality documents.
The investment in Litera follows one of Hg's core investment
theses, focused on the secular growth of software suppliers for
business-critical functions in the legal and regulatory compliance
sector. Hg has been actively following this theme for over 15
years, with Litera representing the sixth legal and compliance
business currently in Hg's portfolio, with others including STP, a
leading provider of insolvency and law practice software in
Germany; and Mitratech, a leading global provider of Enterprise
Legal Management ('ELM') software to corporate legal departments,
based in Austin, Texas.
Hg's team has known Litera for several years, recognising it as
a business solving mission-critical workflows for its customers,
leading to strong recurring revenues and displaying the same growth
characteristics as many others in the Hg portfolio. The investment
will be made from Hg's Genesis 8 Fund which, following the
completion of this transaction, will be 54% invested across 7
software and service businesses.
Ben Meyer, Jean Baptiste Brian and Hector Guinness at Hg, said:
"We have been very impressed with Litera's great track record of
delivering innovative products that change the way legal
professionals work, with an unmatched record of excellent customer
support and satisfaction. We look forward to working closely with
Avaneesh and his team to continue the success of this company".
Avaneesh Marwaha, CEO of Litera, said: "Over the last few years,
Litera has experienced great success in creating a platform for
long term growth. As we looked for the next partner to align the
business with, Hg stood out. Leveraging Hg's support and their
experience in software, legal, life sciences and global expansion
will enable Litera to reach new levels of success with confidence,
whilst also allowing us to further invest in our people and
culture. We look forward to partnering with Hg and developing new
products and capabilities to continue to meet the evolving needs of
our customers."
Hg were advised by Evercore (M&A), EY (Financial & Tax),
Deloitte (Financing), PWC (Commercial) and Skadden (Legal). Litera
were advised by William Blair.
For further details:
Hg
Laura Dixon
+44 (0)20 7089 7888
Brunswick
Chris Blundell and Joe Shipley +44 (0)20 7379 5151
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
technology and tech-enabled 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 and Litera Microsystems'
websites and any website accessible from hyperlinks on such
websites (or any other website) are not incorporated into, and do
not form part of, this announcement.
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END
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