HgCapital Trust plc Regulatory News (HGT)

Hg, the Manager of HgCapital Trust plc ("HGT"), today announces a merger between Ideagen, a trusted name in software solutions for regulated industries, and ProcessMAP, a leading Environmental, Health and Safety ("EHS") software platform provider.

Hg will remain as majority investor in the combined business. The transaction is expected to close in 2022 and is subject to customary closing conditions.

Today's announcement will see ProcessMAP become "ProcessMAP - an Ideagen solution" with customers benefiting from Ideagen's expertise as a leading regulatory software provider and access to a wider portfolio of solutions including quality, collaboration audit, and risk management. It also provides an opportunity for Ideagen to enhance its health and safety offering to the 10,000 organisations it already supports worldwide.

This transaction values HGT's existing investments in ProcessMAP and Ideagen at £81.4 million. This would represent an uplift of £4.8 million (6% or 1.05 pence per share over the carrying value of £76.6 million in the Net Asset Value ("NAV") of HGT at 31 August 2022).

HGT, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all Hg's investments.

Based on the 31 August 2022 reported NAV, the pro-forma NAV of the Trust is expected to be £2.04 billion (or 446 pence per share). HGT's available liquid resources, which includes the undrawn bank facility of £115 million for future deployment, are estimated to be £357 million (17% of the 31 August 2022 pro-forma NAV of £2.05 billion).

HGT's outstanding commitments to invest in Hg transactions are approximately £1.1 billion (54% of the pro-forma 31 August 2022 NAV).

Ideagen and ProcessMAP to combine their strengths to create aworld-leading health and safety software solution

Ideagen, a trusted name in software solutions for regulated industries, has today announced it has entered into a definitive agreement to acquire ProcessMAP.

Speaking about the news Ideagen CEO, Ben Dorks, said: "Both organisations share a common purpose, and this provides a compelling opportunity to do more to support the safe hands and quiet voices that protect the world.

"Adding ProcessMAP into Ideagen'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."

Today's announcement will see ProcessMAP become "ProcessMAP - an Ideagen solution" with customers benefiting from Ideagen's expertise as a leading regulatory software provider and access to a wider portfolio of solutions including quality, collaboration audit, and risk management. It also provides an opportunity for Ideagen to enhance its health and safety offering to the 10,000 organisations it already supports worldwide.

Dave Rath, CEO of ProcessMAP, said: "The increased importance of strong corporate ESG strategies has prompted our customers to think and act responsibly to ensure safe and ethical practices for employees and customers. 

"By combining with Ideagen, we will create a category leading EHSQ software business, sharing talent, technology, innovation, and geographical reach to expand globally, leveraging each other's infrastructure and customer base."

ProcessMAP's existing customers are in good company, Ideagen helps the world's top seven aerospace and defence companies, 15 of the top 20 pharmaceutical companies, nine of the top 10 accounting firms, over 250 hospitals in the UK and US and over 300 aviation organisations globally, to protect their businesses.

Ben added: "We have, within our global footprint, a diverse mix of large corporations, small, and mid-market customers, whose need for software solutions increase as they grow in size, geographic spread, or place increasing importance on ESG reporting.

"This combination provides us with an exciting opportunity to support existing and new customers with a best-in-class health and safety solution that is appropriate to their needs and flexible enough to scale as they evolve."

This will be Ideagen's second acquisition of 2022 and the fifth since the summer of 2021, as it continues to strengthen its portfolio of software solutions for regulated industries.

Hg, a leading software and services investor, will remain as majority investor in the combined business.

Christopher Fielding, Joris Van Gool and Jean-Baptiste Brian, Partners at Hg, commented: "This is a significant milestone for both businesses and it's exciting to see such strategic progress so early in our work together.

"Both Ideagen and ProcessMAP are high quality businesses, with complementary product suites and diversified regional cover across Europe, North America and APAC. Together the business will be better positioned to serve its customers and take advantage of the numerous tailwinds in regulation, compliance and ESG. We are looking forward to further expansion in the coming months."

The transaction is expected to close in 2022 and is subject to customary closing conditions.

For further details:

Hg

Tom Eckersley +44 (0)208 148 5401

HgCapital Trust

Laura Dixon +44 (0)20 8396 0930

Brunswick

Azadeh Varzi +44 (0)207 404 5959

Hg@brunswickgroup.com

About HgCapital Trust plc

HgCapital Trust plc, whose shares are listed on the London Stock Exchange (ticker: HGT.L), gives investors exposure through a liquid vehicle to a portfolio of high-growth private companies in the software and services sector. The selection of new investments and creation of value in these businesses are managed by Hg, an experienced and well-resourced private equity firm with a long-term track record of delivering superior risk-adjusted returns for its investors. For further details, please see www.hgcapitaltrust.com.

The contents of the Hg, HgCapital Trust, Ideagen and ProcessMAP's websites are not incorporated into, and do not form part of, this announcement.