Hg sells Trace One to Symphony Technology Group

RNS Number : 2573T

HgCapital Trust PLC

24 March 2021

 

Hg, the Manager of HgCapital Trust plc ("HGT"), today announces that it has agreed the sale of Trace One, the world's largest collaborative retail business platform for consumer-packaged goods (CPG).

This proposed sale is subject to French Workers' Council consultations and customary clearances. The terms of the transaction are not disclosed.

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

This transaction values HGT's investment in Trace One at approximately £5.8 million. This would represent an uplift of £1.3 million (30% or 0.3 pence per share) over the carrying value of £4.4 million in the Net Asset Value ("NAV") of HGT at 28 February 2021.

Note that these figures only relate to HgCapital Trust's share of Hg's overall investment in Trace One.

Based on the 28 February 2021 reported NAV, the pro-forma NAV of the Trust is expected to be £1.3 billion (or 305.6 pence per share). HGT's liquid resources available for future deployment (including all announced transactions, the proposed full-year dividend payable in May 2021 and equity raised via tap issuance) are estimated to be £121 million (9% of the pro-forma 28 February 2021 NAV). In addition, HGT has access to an £200 million standby facility, which is currently undrawn.

Hg sells Trace One to Symphony Technology Group

Paris, France; Palo Alto, USA and London, United Kingdom: 24 March 2021 - Hg, Europe's leading software investor, today announces that it has entered into an agreement to sell its investment in Trace One to Symphony Technology Group ("STG"), a Palo Alto-based private equity firm focused on investing in the software, data analytics, and software-enabled technology services sectors.

This proposed sale is subject to French Workers' Council consultations and customary clearances. The terms of the transaction are not disclosed.

Trace One is the world's largest collaborative retail business platform for consumer-packaged-goods (CPG). It provides one SaaS inclusive platform with multiple interlocking business applications, including product lifecycle management, sourcing, and compliance, for 25 leading global retailers and 5,000+ FMCG manufacturers. Trace One enables customers to create higher quality, trusted, and compliant own-branded goods faster, delivering benefits to their consumers and the environment.

Christophe Vanackère, CEO at Trace One, said: "It's been so valuable to partner with Hg for just over four years. Together with Hg, the business has implemented several value-add initiatives and we've been able to leverage Hg's operational capabilities throughout their ownership period. We look forward to partnering with STG in the next phase and are excited about the new opportunities this will bring to Trace One and our clients."

Sebastien Briens, Partner at Hg, said: "Christophe has led a first-class team and we thank them for what has been a great partnership since we first invested. Since then, we have built significant value in the business together, investing in the technology platform and launching several new products whilst transforming the sales and marketing function and go-to-market strategy - all enhancing the customer experience. We wish the team well in partnership with STG going forward."

"Trace One is the undisputed sector leader serving the world's leading global retail brands and a network of over 5,000 manufacturers," said William Chisholm, Managing Partner at STG. "We are thrilled to partner with Christophe and his team, and we are fully committed to driving Trace One's next phase of growth as the leading SaaS player empowering retailers and their manufacturing partners globally."

For further details:

Hg

Laura Dixon  [phone]

Brunswick

Samantha Chiene                                                                                                             [phone]

[e-mail]

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, Trace One and Symphony Technology Group websites are not incorporated into, and do not form part of, this announcement.

 

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