TIDMHGT
RNS Number : 7135W
HgCapital Trust PLC
14 December 2023
Hg, the Manager of HgCapital Trust plc ("HGT"), today announces
an investment CINC Systems ("CINC"), a leading cloud-based software
company serving the community association management sector. The
terms of the transaction are not disclosed.
HGT will invest approximately GBP13.6 million in CINC, with
other institutional clients of Hg investing alongside HGT through
the Hg Mercury 4 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 CINC.
HGT's liquid resources available for future deployment
(including all announced transactions, the undrawn bank facility
and the interim dividend paid in October 2023) are estimated to be
GBP746 million (33% of the pro-forma 30 September 2023 NAV of
GBP2.3 billion).
The investment will reduce HGT's outstanding commitments to
invest in Hg transactions to approximately GBP1.0 billion (44% of
the pro-forma 30 September 2023 NAV).
CINC Systems secures meaningful strategic investment from Hg
to accelerate its growth as a premier software provider to the
community association management industry
- Hg will become a strategic growth investor in the business
alongside CINC's founder, Bill Blanton, its management team and
current investors, Spectrum Equity.
- The new investment follows a significant year of growth for
the business, with record new bookings and 50% revenue growth in
2023.
- Tom Kiernan, former CEO of ClickPay, will join the Board as
part of the transaction, bringing additional industry expertise and
relationships, as well as experience in constructing easy-to-use
payment platforms for homeowners.
DULUTH, Ga, USA and New York, USA. December 14, 2023. CINC
Systems ("CINC"), a leading cloud-based software company serving
the community association management sector, today announced it has
secured a strategic growth investment from Hg, a leading investor
in European and North American software and services
businesses.
On completion of the transaction, Hg will become a strategic
shareholder in the business, investing alongside CINC's founder,
Bill Blanton, and its management team, as well as current investors
Spectrum Equity.
CINC is a leading provider of accounting, homeowner management,
bank integrations and payments software for the association
management industry, comprised of homeowner association ("HOA") and
condominium associations. Founded in 2005, CINC has built a leading
SaaS platform for this sector, serving more than 4 million units
across about 35,000 associations and nearly 800 management
companies, with deep integrations and strategic partnerships with
more than 30 partner banks.
CINC recently announced the launch of several ground-breaking
innovations for the industry at its annual user conference CINC Up,
including the introduction of artificial intelligence ("AI") in its
management company-branded homeowner apps. The technology allows
homeowners to use their apps to ask simple questions that bog down
association managers - and receive informed answers in return.
Bill Blanton, CINC Systems Founder and Chairman, said: "I'm
proud that our achievements have attracted the attention of two
globally renowned SaaS-specialist investors. The addition of Hg's
expertise in expanding top-tier software businesses, complemented
by Spectrum's support, places us in an advantageous position to
keep innovating our products to better serve our clients, add new
clients and expand our reach."
Ryan Davis, Chief Executive Officer of CINC Systems, said: "
This is a really exciting day for us all. With Hg's expertise, our
foundation in this sector is now stronger than ever. The wealth of
experience and knowledge that this collaboration brings, puts us in
the perfect position to innovate and augment our product."
CINC has scaled rapidly in recent years, investing to ensure
fast-paced product innovation, a robust customer success team and
enhanced sales and marketing efforts. This has resulted in a
significant year of growth in 2023, with record new bookings and
approximately 50% revenue growth. Today, its all-in-one software,
bank integration and payments technology solution adds significant
value to all participants in the HOA ecosystem, with more than $7
billion of annual payment volume being managed through its
platform.
Hg brings significant sector expertise to CINC. Over the last 19
years, the firm has invested around $10 billion in the wider tax
and accounting software segment across Europe and North America. Hg
will use this experience to support the business, with continued
investment in CINC's go-to-market strategy and further innovation
in new product launches, building on the momentum of the AI product
launches, TresRE and VendorPay earlier this year.
Tom Kiernan, former CEO and co-founder of ClickPay, one of the
industry's leading payment platforms, will join the board as part
of the transaction. This appointment will add Kiernan's industry
knowledge, strong relationships and deep payments expertise to help
further strengthen the leadership team and support the business as
it continues to rapidly grow.
Farouk Hussein, Partner at Hg, said : "Our extensive work
confirms CINC's product leadership as a system of record in this
sector. It has a highly differentiated, purpose-built integrated
solution for banking and accounting in a growing segment that is
only in the very early innings of software adoption. We look
forward to backing Ryan and partnering with the existing
shareholders and management team to continue driving the CINC
success story."
Mike Farrell, Managing Director at Spectrum, said: "We've had a
great partnership with Bill, Ryan and the entire leadership team at
CINC. They've established CINC's enviable position in the market,
and we are excited to continue to support them, and collaborate
with Hg, as the company enters its next phase of growth."
Raymond James is acting as exclusive financial advisor to CINC
and Spectrum Equity, and Troutman Pepper and Latham & Watkins
LLP are acting as their legal advisors. Harris Williams is serving
as exclusive financial advisor to Hg and Kirkland & Ellis LLP
is serving as its legal advisor.
The terms of the transaction have not been disclosed.
For further details:
Hg
Tom Eckersley
+44 (0)208 148 5401
HgCapital Trust
Laura Dixon +44 (0)20 8396 0930
Brunswick
Azadeh Varzi +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, CINC System and
Spectrum Equity websites are not incorporated into, and do not form
part of, this announcement.
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