HgCapital re-invests in UK business software firms (5052T)
December 07 2011 - 2:01AM
UK Regulatory
TIDMHGT
RNS Number : 5052T
HG Capital Trust PLC
07 December 2011
HgCapital Trust plc will participate in the acquisition of a
majority stake in IRIS Software Group Limited ("IRIS") alongside
other institutional clients of HgCapital. The Trust, whose shares
are listed on the London Stock Exchange, gives private and
institutional investors the opportunity to participate in all
HgCapital's investments. IRIS will be split into two entirely
separate companies, being Iris Accountancy Solutions and Iris
Software Group. The Trust will contribute a net total of
approximately GBP26.5 million, split between the two separate
companies.
Based on the 30 November 2011 NAV and the impact of this
transaction, liquid resources are estimated to be GBP72.7 million
(20% of the 30 November 2011 NAV) and the Trust's outstanding
commitments to HgCapital funds is GBP247.1 million.
HgCapital re-invests in the UK business software firms, IRIS
Accountancy Solutions and IRIS Software Group
London, 7 December 2011: HgCapital, the European sector-focused
private equity investor, has today announced that, following the
separation of IRIS into two operating businesses; IRIS Accountancy
Solutions ("IAS") and IRIS Software Group ("ISG") , it has acquired
a majority stake in both independent businesses, from the US-based
private equity firm, Hellman & Friedman. HgCapital has held a
stake in IRIS since 2004, and has been a minority shareholder
alongside Hellman & Friedman since 2007. IRIS Accountancy
Solutions is the UK's leading provider of specialist applications
software and solutions to the UK Accountancy and Payroll sectors,
whilst IRIS Software Group operates in various other vertical
software markets.
This investment represents a continuation of HgCapital's
thematic, sector-driven investment strategy, representing
HgCapital's seventh investment in the regulatory-driven SME
software sector. HgCapital has built a reputation as a partner of
choice for regulatory-driven SME businesses, which benefit from
above-GDP growth trends, low customer churn rates, and contracted
earnings models. HgCapital's other current investments in the
sector include TeamSystem in Italy, and Visma in Norway, and its
previous investments include Addison in Germany. HgCapital intends
to use this experience to support the management teams of the two
new IRIS companies as they continue to grow their businesses.
Nick Discombe, who remains as Chairman of both companies, said,
"This represents a significant vote of confidence from HgCapital.
They have a good understanding of the strengths and market
positions of IRIS Accountancy Solutions and IRIS Software Group and
their expanded investment demonstrates their belief that we can
achieve further significant growth."
- Ends -
For further details please contact:
HgCapital: Alex King +44 (0) 20 7089 7951
Neil Bennett, George
Maitland: Hudson +44 (0) 20 7379 5151
IRIS Accountancy
Solutions & IRIS
Software Group: Nick Discombe +44 (0) 1753 212201
About HgCapital
HgCapital is a sector expert private equity investor, supporting
management teams to grow industry champions. Deeply resourced
sector teams focus on specific sub-sectors and investment themes to
identify companies occupying an established position within a
niche, which have the potential to grow faster than their market,
create employment and become the leader in their industry.
HgCapital's dedicated portfolio management team provides practical
support to management teams to help them realise their growth
ambitions. HgCapital invests in expanding segments of the
Healthcare, Industrial, Services, TMT and Renewable Energy sectors
across Western Europe.
Based in London and Munich, HgCapital manages over GBP3.6
billion for some of the world's leading institutional and private
investors. For further details, please see www.hgcapital.com.
About HgCapital Trust plc
HgCapital Trust plc is an investment trust whose shares are
listed on the London Stock Exchange. The Trust is a client of
HgCapital, giving investors exposure to a portfolio of high-growth
private companies, through a liquid vehicle. New investments and
existing portfolio companies are managed by HgCapital, an
experienced and well resourced private equity firm with a long-term
track record of delivering superior risk-adjusted returns for its
investors. The Trust has won the Investment Week Private Equity
Investment Trust of the Year every year since in 2005. For further
details, please see www.hgcapitaltrust.com
Neither the contents of HgCapital's, HgCapital Trust's nor
Iris's (IAS or ISG) website nor the contents of any website
accessible from hyperlinks on the websites (or any other website)
is incorporated into, or forms part of, this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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