TIDMHGT
RNS Number : 7495K
HgCapital Trust PLC
06 January 2021
Hg, the Manager of HgCapital Trust plc ("HGT"), today announces
an investment in Prophix, a global leader in Corporate Performance
Management (CPM) software.
The terms of the transaction were not disclosed.
HgCapital Trust plc will invest approximately GBP15.7 million in
Prophix, with other institutional clients of Hg investing alongside
HGT through the Hg Genesis 9 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 HGTs share of Hg's
overall investment in Prophix.
HGT's liquid resources available for future deployment
(including all announced transactions and the interim dividend paid
in October 2020) are estimated to be GBP151 million (12% of the 30
September 2020 pro-forma NAV of GBP1.25 billion, including the
increase in equity via tap equity issues over the fourth quarter of
2020). In addition, HGT has access to a GBP200 million standby
facility, which is currently undrawn.
The investment will reduce HGT's outstanding commitments to
invest in Hg transactions to approximately GBP582 million (46% of
the 30 September 2020 pro-forma NAV).
Hg invests in Prophix
to continue to scale the business and invest further in product
and technology
Mississauga, Canada; New York, USA and London, UK: 6(th) January
2021 - Prophix, a global leader in Corporate Performance Management
(CPM) software, today announces an investment from Hg, a leading
global software investor. Hg's investment is expected to accelerate
and scale Prophix's growth and fund further development of its
product capabilities.
This deal will result in Prophix employees and management
participating to acquire the company alongside Hg, who will hold
the majority investment. This will allow staff to benefit more
directly from the organization's ongoing growth.
Founded in 1987 and based in Ontario, Canada, Prophix is a
leading provider of CPM software serving mid-market companies
across multiple industries worldwide, providing planning, budgeting
and financial reporting software into the 'office of the CFO'.
Prophix's software allows organizations to improve their financial
reporting capabilities, while also standardizing and streamlining
the budgeting process to generate significant ROI through a faster
time to close, reduction in budgeting errors and an ability to
reforecast in a more agile way. Prophix is a leader in its segment
with over 1,600 customers, industry-leading retention rates and
best-in-class customer NPS.
Alok Ajmera, Chief Executive Officer of Prophix, said: "Our
journey so far has shown us that there is still so much to play for
in our industry. We have significant ambitions for the business and
Hg's investment and operational experience in software will help us
reach these goals. We will look to serve our customers better than
ever before, as we invest further in our sales and marketing
functions, further our R&D capabilities, accelerate our
transition to the cloud and look to scale our business across
several regions, including in Europe. Hg has successfully helped
businesses to accomplish these goals many times over and we're
excited to tap into some of this experience to unlock our full
potential."
Paul Barber, Founder and Executive Chairman of Prophix, said:
"This is a really momentous announcement for the team at Prophix
and we warmly welcome Hg as a key strategic partner today. It has
been an incredible journey to date, and I am so grateful to the
enormous talent that has seen us get to this stage. Together with
Hg we will move forward with an unstoppable team and a very bright
future for the business."
This partnership with Prophix reinforces Hg's focus on mission
critical B2B software sitting at the intersection of Hg's
experience in ERP and Tax & Accounting. This transaction
represents Hg's seventeenth investment in this space in the last 16
years, with total invested capital of over $3.5 billion. Prophix is
also the fourth software business based in Canada that Hg has
invested in over the last 12 months.
Jonathan Boyes, Partner at Hg, said: "Prophix sits right at the
heart of a universe that we have been investing in for almost two
decades. This means that we recognise high-quality when we see it
and Prophix falls firmly into this category. Prophix is a great
business run by an impressive team. They have created a
best-in-class cloud product that serves a very satisfied customer
base, with a huge runway for further growth. We're really excited
about joining the team."
Ben Meyer, Partner and co-lead of Hg's New York team, said: "We
see significant growth opportunity from the continued adoption of
CPM software by mid-market organizations, as the need for real-time
financial information and the ability to budget & reforecast in
a more agile way becomes increasingly important. Prophix is
positioned incredibly well to benefit from this trend, which is a
testament to the successful efforts of Paul, Alok and the rest of
the Prophix team. We look forward to partnering with Alok and his
team to help the company continue to realise its future growth
potential."
The terms of the transaction were not disclosed. Advising
Prophix on the transaction were Shea & Company as financial
advisor and Osler, Hoskin & Harcourt LLP as legal advisor.
Advising Hg were Stifel (M&A), Skadden (legal), Kirkland &
Ellis (financing), Deloitte (accounting and tax) and EY (commercial
and technology).
For further details:
Hg
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 and Prophix websites are
not incorporated into, and do not form part of, this
announcement.
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