(Alliance News) - HgCapital Trust PLC on Friday said manager Hg led a further majority investment in Oslo-based software and technology provider Visma AS, valued at USD12.2 billion, in the world's largest ever software buyout.
HgCapital Trust will be investing in Visma alongside other institutional clients of Hg through the Hg Saturn 2 fund, while Hg's Genesis 7 Fund will reduce its holding in Visma.
HgCapital Trust will be investing GBP17.1 million in Visma, bringing its existing investments in the company to GBP268.8 million. This would represent a 35% uplift of GBP69.1 million or 17 pence per share over the carrying value of GBP199.7 million in the net value asset of HgCapital Trust.
Following completion of the Visma transaction, the pro-forma NAV of the trust is expected to be GBP1.08 billion or 263.6 pence per share.
Hg Saturn 2 will put forward the majority of the new invested capital to acquire a further stake in Visma from a group of current investors including European private equity firm Montagu, which will fully exit the business, the company said.
The investment will value Visma at an enterprise value of USD12.2 billion, making it the largest ever software buyout.
Visma focuses on improving productivity through software-as-a-service in areas such as accounting, resource planning, payroll, HR and commerce applications.
Visma Chief Executive said: "For almost 15 years now, Visma has benefited from a supportive and highly knowledgeable private equity investor base, led by Hg. This guidance and know-how in the software sector has enabled us to consistently and significantly expand both our product offering and geographic footprint."
The news comes after HgCapital Trust on Thursday noted that the Hg Saturn team and its investors have agreed to make an additional investment in tax software provider Sovos.
HgCapital Trust is to invest around GBP40.8 million in Sovos, alongside other Hg clients through the Hg Saturn 2 Fund.
As part of the Sovos deal, Hg's Genesis 7 Fund will sell its Sovos holding on terms not disclosed and HGT will realise around GBP139.2 million of cash proceeds on completion of the deal from the sale of Hg Genesis 7's investment and associated co-investment in Sovos.
HgCapital Trust will issue interim results on September 14.
HgCapital Trust shares were up 4.6% at 265.00 pence each on Friday morning in London.
By Greg Roxburgh; email@example.com
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