Last checked at 
22 Jan 2019 09:40
Hg Capital Trust plc
Hg, the Manager of HgCapital Trust plc ("the Company"), today announces the part-realisation of Visma from Hg7, to the Canada Pension Plan Investment Board (CPPIB).
The terms of the transaction were not disclosed.
The Company, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all Hg's investments.
The investment by CPPIB realises a minority part of Hg's investment in Visma, held by the Hg7 Fund.
Hg has been supporting Visma's growth strategy for over 12 years, collaborating on over 140 bolt-on acquisitions whilst also helping transition Visma to become Europe's largest SaaS business. During this time Visma has delivered consistent revenue growth at around 15% per year, evolving from a €450m business in 2006 into one valued at well over €6 billion today.
Following completion of the transaction, Hg will remain the lead investor in Visma, and will continue to support the business' growth as the majority shareholder through its managed funds including the Hg7 Fund and the Hg Saturn 1 Fund.
This transaction values the Company's overall investment in Visma prior to completion at approximately £153.6 million. This would represent an uplift of £14.3 million (10%) over the carrying value of Visma of £139.3 million in the Net Asset Value ("NAV") of the Company at 30 November 2018. The Company will realise estimated cash proceeds of approximately £21.7 million on completion of this transaction, meaning the Company's residual holding in Visma would be valued at £131.9 million. (Note that these figures only relate to HgCapital Trust's investment in Visma.)
Based on the 30 November 2018 NAV, the pro-forma NAV of HgCapital Trust would be £777.2 million (or 2,082.3 pence per share). The Company's liquid resources available for future deployment (after adjusting for all announced transactions) are estimated to be £156 million (20% of the pro-forma 30 November 2018 NAV). In addition, the Company has access to a £80 million standby facility, which is currently undrawn.
Visma Group welcomes the Canada Pension Plan Investment Board as a new investor
Visma Group, a leading provider of business-critical software to private and public enterprises in the Nordic, Baltic and Benelux regions, is delighted to announce today that it has welcomed the Canada Pension Plan Investment Board (CPPIB) as an investor in the company.
CPPIB is a large international, institutional investor, managing the funds of the Canada Pension Plan on behalf of its 20 million Canadian contributors and beneficiaries. The transaction, led by CPPIB and following a competitive sales process for a stake in the business, will see CPPIB invest through its wholly-owned subsidiary, CPP Investment Board Europe S.a.r.l., in a part of the holding currently held by Hg, a specialist technology investor and majority shareholder in Visma.
Following the transaction, Visma will have backing from some of the world's largest institutional and specialist technology investors alongside lead investor Hg, including Cinven, GIC, Intermediate Capital Group and Montagu. Together, Visma and its strong investor base will continue to reinforce Visma's position as a leading SaaS business in Europe and one of the world's most successful SaaS companies.
The terms of the transaction are not disclosed.
For further details:
Hg | |
Laura Dixon | +44 (0)20 7089 7888 |
Maitland | |
Vikki Kosmalska | +44 (0)20 7379 5151 |
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 technology and tech-enabled 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, Visma and CPPIB's websites and any website accessible from hyperlinks on such websites (or any other website) are not incorporated into, and do not form part of, this announcement.