19th Sep 2016 07:11
LONDON (Alliance News) - Investment firm HgCapital Trust PLC said Monday that HgCapital, its manager, has agreed the sale of payroll software company Personal & Informatik AG to a company backed by private equity company Permira Advisers LLP for an undisclosed amount.
The sale is the first exit from the HgCapital 7 Fund and HgCapital Trust will realise cash proceeds of approximately GBP31.9 million on completion. HgCapital will retain a minority position of EUR70 million in Personal & Informatik, with HgCapital Trust's share of this valued at around GBP6.0 million.
HgCapital said the pro-forma net asset value of HgCapital Trust is expected to increase to GBP586.0 million or 1,570.1 pence per share on completion of the deal. HgCapital measures the internal rate of return on the Personal & Informatik investment at 36%, with a 2.3 times investment multiple.
HgCapital also said on Monday that HgCapital Trust, along with some of HgCapital's institutional clients via the HgCapital 7 fund, has acquired Norway-based outsourced accountancy services company Visma BPO, from accountancy software company Visma. HgCapital will contribute a total of approximately GBP20.1 million in the transaction, although the full terms of the transaction were not disclosed.
HgCapital owns Visma, alongside fellow private equity firms KKR and Cinven and the management team. HgCapital said Visma BPO is being carved out of the larger company and sold as part of an "organised competitive sales process" following Visma's strategic decision to focus on its 'software as a service' offerings.
"We believe that this transaction will lead to significant advantages to both parties going forward. Visma BPO will continue its focus as a provider of complete SaaS solutions in the Nordics. HgCapital's proven sector experience has been pivotal in implementing this deal and we are pleased we can continue to develop Visma BPO as a Norwegian-based industry leader in Northern Europe," said HgCapital Director Thorsten Toepfer.
Shares in HgCapital Trust were up 0.7% at 1,415.00 pence early Monday.
By Adam Clark; [email protected]
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