(Alliance News) - Hg, the manager of HgCapital Trust PLC, on Wednesday announced a merger between Ideagen and ProcessMap, a software solutions and software platform provider respectively.
HgCapital is a London-based investment vehicle which gives shareholders access to the unquoted business managed by Hg.
The transaction is expected to close in 2022, and is subject to customary closing conditions. Hg will remain as majority investor in the combined business.
Hg said the transaction will allow customers to benefit from Ideagen's expertise as a regulatory software provider. It values HGT's existing investments in both ProcessMap and Ideagen at GBP81.4 million.
The merger would represent an uplift of GBP4.8 million.
HGT said that based on reported net asset value for August 31 2022, the pro-forma net asset value of the trust is expected to be GBP2.04 billion. HGT's outstanding commitments to invest in Hg transactions are approximately GBP1.1 billion, 54% of the pro-forma NAV.
Ben Dorks, Chief Executive Officer of Ideagen, said that adding ProcessMap into the company's existing suite of solutions "builds on our combined strengths and enhances the ways we support organisations to manage their quality, health, safety and environmental needs".
This will be Ideagen's second acquisition of 2022, and its fifth since the summer of 2021.
Hg added: "This is a significant milestone for both businesses and it's exciting to see such strategic progress so early in our work together."
HgCapital shares were trading 0.6% lower at 348.84 pence each in London on Wednesday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
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HgCapital Trust plc (HGT)