TIDMHGT
RNS Number : 6604X
HgCapital Trust PLC
21 December 2023
Hg, the Manager of HgCapital Trust plc ("HGT"), today announces
that it has agreed to a further investment in Visma, a leading
provider of mission-critical cloud software in Europe and
Latin-America.
Visma will welcome around 20 new investors to the shareholder
register, worth over EUR1bn of equity investment. In addition the
transaction will result in c.EUR3bn new investment from existing
shareholders including majority investor, Hg.
HGT, whose shares are listed on the London Stock Exchange, gives
private and institutional investors the opportunity to participate
in all Hg's investments.
HGT will make a net investment of approximately GBP83.5 million
in Visma, with other institutional clients of Hg investing
alongside HGT through the Hg Saturn Funds. As part of the
transaction, Hg's Genesis 7 fund will fully exit its remaining
position in Visma. HGT's net exposure to Visma will be GBP309.5m at
closing representing approximately 13.6% of current NAV.
Note that these figures only relate to HgCapital Trust's share
of Hg's overall investment in Visma.
Based on the 30 September 2023 reported NAV, the pro-forma NAV
of the Trust is expected to be GBP2.3 billion (or 498.5 pence per
share). HGT's available liquid resources, which includes the
undrawn bank facility of GBP350 million for future deployment
(including all announced transactions and the interim dividend paid
in October) are estimated to be GBP663 million (29% of the
pro-forma 30 September 2023 NAV).
The investment will reduce HGT's outstanding commitments to
invest in Hg transactions to approximately GBP890 million (39% of
the pro-forma 30 September 2023 NAV).
Visma attracts new investors for further international expansion
in a transaction valuing the company at EUR 19 billion
-- Investment follows another period of strong growth and
continued international expansion, with now 17-years of
uninterrupted, year-on-year, revenue and EBITDA growth (18% and 22%
CAGR respectively, during the period).
-- Visma will welcome around 20 new investors to the shareholder
register, worth over EUR1bn of equity investment. In addition the
transaction will result in c. EUR3bn new investment from existing
shareholders including majority investor, Hg.
-- With revenue of EUR2.4 billion, Visma will continue its
growth strategy of international expansion and product innovation,
supported by a solid and knowledgeable shareholder base.
London, UK and Oslo, Norway. 21 December 2023. Visma, a leading
provider of mission-critical cloud software in Europe and
Latin-America, today announces that it has expanded its shareholder
base through a secondary sale to leading international
shareholders, to support further international growth.
The transaction, which values Visma at EUR 19 billion, will
welcome around 20 new investors to the shareholder register, worth
over EUR1bn of equity investment, with new investors including
Altaroc, Jane Street and NYC Retirement System.
The transaction will also result in around EUR3bn new investment
from existing shareholders, including Hg, who will continue its
17-year long investment in the business with a majority stake, in
addition to a group of co-investors including ICG, TPG and Visma
management.
"We are delighted to receive this further vote of confidence
from Hg and other leading investors, in a transaction that confirms
our stellar development and attractive outlook. Visma delivers the
digital tools that businesses need to drive efficiency, innovate
and stay competitive. Supported by a solid and knowledgeable
shareholder base, we are perfectly positioned to continue our
unique growth journey", says Merete Hverven, CEO of Visma.
Visma's growth journey
Today Visma is the largest privately-owned software business in
Europe, and a leading provider of cloud accounting and ERP
solutions to small and medium sized businesses in the region. After
a period of significant international expansion, entering France,
Germany, Portugal, Peru and Iceland in the last two years alone,
the Group is currently present in 28 countries with more than
15,000 employees.
Meanwhile, divestments of non-core assets within IT consulting
and cloud infrastructure services in 2022 has further focused the
company's business model on standardised SaaS (Software as a
Service) products to the private and public sectors. Visma's
annualized repeatable revenue (ARR) stood at EUR 2.2 billion at the
end of Q3 2023, representing a growth of 17 percent from the same
period last year and 17 years of uninterrupted, year-on-year,
revenue and EBITDA growth (18% and 22% CAGR respectively during the
period).
"Visma's success is a result of the fantastic efforts of our
highly skilled and engaged employees. With our industry-leading
investments in product development and AI-driven automation of
critical business processes, we remain well equipped to capture the
strong growth in digital services", Hverven adds.
Nic Humphries, Senior Partner at Hg, said: "Today Visma is
Europe's largest private equity owned software business, growing
twice as fast now compared to when we first invested in 2006,
despite having become a business that's over 20 times larger. This
incredible achievement is the result of an investment in modern
SaaS products over ten years ago, progressed by a thirst for
innovation and a world-class management team led by Merete. We
welcome our new investors and look forward to the next chapter of
this European tech success story."
For further details:
Hg
Tom Eckersley +44 (0)208 148 5401
HGT
Laura Dixon +44 (0)20 8396 0930
Brunswick
Sofie Brewis +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, Visma and all named
investor websites are not incorporated into, and do not form part
of, this announcement.
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