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RNS Number : 7843Z
HgCapital Trust PLC
23 September 2020
Hg, the Manager of HgCapital Trust plc ("HGT"), today announces
an investment in The Citation Group, a leading provider of
tech-enabled, subscription-based HR and Employment law, Health
& Safety, and ISO services to SMEs. The terms of the
transaction are not disclosed.
HgCapital Trust plc will invest approximately GBP22.0 million in
The Citation Group, with other institutional clients of Hg
investing alongside HGT through the Hg Genesis 8 Fund.
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 HGT's share of Hg's
overall investment in The Citation Group.
HGT's liquid resources available for future deployment
(including all announced transactions and the interim dividend
payable in October 2020) are estimated to be GBP294 million (25% of
the 31 August 2020 pro-forma NAV of GBP1.15 billion, including the
increase in equity via tap equity issues over the third quarter of
2020). The investment will reduce HGT's outstanding commitments to
invest in Hg transactions to approximately GBP792 million.
Hg announces new investment in The Citation Group
London, U.K. 23 September 2020 - Hg, a leading European investor
in software and tech-enabled services businesses, today announces
an investment in The Citation Group ("Citation"), a leading
provider of tech-enabled, subscription-based HR and Employment law,
Health & Safety, and ISO services to SMEs.
Citation provides tech-enabled compliance and quality related
subscription services to over 40,000 SMEs across the UK. Citation
helps these SMEs to comply with relevant regulations and ensure
certain levels of quality and standards are met, in areas such as
Health & Safety, HR / Employment Law, ISO and industry specific
rules and standards by providing a combination of expert advice,
software tools and audits / assessments, mostly on a long-term
subscription basis.
Hg first invested in Citation in 2016. In August this year, Hg
announced the sale of Citation to KKR, a leading global investment
firm. Recognising the significant potential for further investment,
the development of Citation and both firms' potential to contribute
to this, KKR provided Hg with an option to reinvest in the next
phase of Citation's growth.
Hg is pleased to announce that it has now exercised that option
to re-invest and partner with KKR by acquiring a co-controlling
stake in Citation.
The terms of the transaction are not disclosed.
Chris Morris, Group CEO of the Citation Group, said: "To attract
the backing of two world-class investors is a huge achievement for
the business and is a testament to the hard work from the Citation
team over many years. Not only does it demonstrate conviction in
the company's trajectory, but this combination of scale with
specialist know-how in our sectors, means that Citation has never
been in a better position to offer best-in-class services as a
trusted partner to our UK SME clients."
Nick Jordan and Joris Van Gool, Partners at Hg, said: "Citation
is very simply a high-quality business, demonstrated by around 20
years of year-on-year growth. Our experience of the business and
its sector means that we recognise further opportunities for
transformational growth, and we're excited to make this new
investment in the business. Now, together with KKR, Chris and a
phenomenal team, we will continue to reinforce Citation as a truly
trusted partner to SMEs."
Tim Franks, Partner, and Joerg Metzner and Stanislas de
Joussineau, Directors at KKR, said: "We very much welcome that Hg
has chosen to exercise its option to re-invest in this great
company and to work alongside us and the management team to capture
the strong growth opportunities for Citation, providing critical,
tech-enabled services to SMEs."
For further details:
Hg
Laura Dixon +44 (0)20 8396 0930
Brunswick
Azadeh Varzi +44 (0)207 404 5959
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, HGT, Citation and KKR's websites are not
incorporated into, and do not form part of, this announcement.
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END
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