TIDMHGT
RNS Number : 3781T
HgCapital Trust PLC
24 March 2021
Hg, the Manager of HgCapital Trust plc ("HGT"), today announces
an investment in Trackunit, a global leader in software-led
telematics solutions for off-highway vehicles and the construction
market.
The terms of the transaction have not been disclosed and closing
is subject to customary closing conditions.
HgCapital Trust plc will invest approximately GBP29.3 million in
Trackunit, 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 Trackunit.
HGT's liquid resources available for future deployment
(including all announced transactions, the proposed full-year
dividend payable in May 2021 and equity raised via tap issuance)
are estimated to be 126 million (10% of the 28 February 2021
pro-forma NAV of GBP1.3 billion). 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 GBP513 million (39% of
the 28 February 2021 pro-forma NAV).
Trackunit attracts strategic investment from Hg
to further accelerate the company's journey to eliminate
downtime in construction
24.03.2021, Aalborg, Denmark, Trackunit has announced that Hg, a
leading global software investor, has agreed to acquire a
controlling interest in the company from Goldman Sachs and GRO
Capital. The addition of Hg as the new owner provides specialized
software-as-a-service (SaaS) expertise at a time of increasing
technology mobilization within the construction industry.
Trackunit, a global leader in software-led telematics solutions for
off-highway vehicles and the construction market, is now positioned
to intensify its global expansion.
Commenting on the new investment, Søren Brogaard, CEO, Trackunit
stated, "GRO Capital and Goldman Sachs have been exceptional
partners during the last five years and helped us solidify our
mission and execute against it. We are proud to have attracted
investment from Hg, which comes at a tipping point for the
digitalization of construction. Hg's understanding, experience and
focus on scaling leading SaaS companies provides Trackunit with a
knowledgeable partner to help consolidate and realize our ambitions
in a growing global industry."
Florian Wolff, Partner at Hg, said: "Søren and the team have led
Trackunit to create a best-in-class, SaaS product for its
ever-growing customer base. The business has become a key leader
and long-term winner in what is a very interesting, global niche
segment. We believe that the business has significant organic
growth and attractive expansion opportunities ahead of it. We're
really excited about what we can achieve together."
Nick Jordan, Partner at Hg, said: "Trackunit is a very
high-quality business. We believe that Hg's deep sector knowledge
and operational expertise in the software and telematics space will
add further support to this impressive track-record. Our experience
in internationalization, the evolution of software and data and the
further development of sales channels will add up to an even
greater experience for Trackunit's customers, as well as an
exciting growth trajectory for the business."
Construction Industry Reaches Tipping Point for Digital
Transformation
Recent market reports from IDC Worldwide and McKinsey - the next
software disruption - illustrate that SaaS has achieved over 25%
share of the market for software solutions in the construction
sector. Moreover, the increase in connectivity is growing and will
amplify the opportunity for SaaS solutions across a global
market.
Trackunit is a driving force in the digitization of the
construction sector, serving equipment manufacturers, rental
companies and contractors, connecting construction equipment and
processing data to the cloud to deliver value-added insights. With
the new owners on board the Trackunit team remains committed to
solving the industry's needs, but at a faster pace and with greater
ambitions. Customers will benefit from additional investments in
product, technology and new services.
Closing of the transaction is subject to customary regulatory
requirements and approvals.
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, Trackunit, Goldman
Sachs Asset Management Division and GRO Capital websites are not
incorporated into, and do not form part of, this announcement.
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