19th Jan 2016 08:35
LONDON (Alliance News) - HgCapital, the manager of London-listed HgCapital Trust PLC, on Tuesday said it has take a majority stake in Boston, US-based Sovos Compliance, which provides regulatory tax compliance software to businesses.
HgCapital said it will be the lead investor in the new transaction structure, alongside Vista Equity Partners, helping the software company to grow its existing business and to participate in mergers & acquisitions. Vista will retain a "significant" minority stake.
The terms of the deal were not disclosed.
HgCapital Trust said it will invest in Sovos alongside other institutional clients of HgCapital, which will participate through the HgCapital 7 Fund.
The trust will contribute a total of about GBP24.9million, including approximately GBP8.4 million in co-investment.
Based on November 30 figures, the trust's liquid resources available for future deployment are estimated to be GBP59.3 million, equivalent to 12% of pro-forma net asset value at that date, excluding a GBP40 million standby debt facility.
The deal will reduce the trust's outstanding commitments to invest in HgCapital deals to about GBP138 million, equivalent to 28% of the pro-forma November 30 net asset value.
Shea & Company acted as the exclusive financial advisor to Vista and Sovos during the transaction.
Shares in HgCapital Trust were untraded on Tuesday morning, having last traded at 1,060.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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