HgCAPITAL ANNOUNCES INVESTMENT IN RELAY SOFTWARE

RNS Number : 6360Z

HgCapital Trust PLC

10 February 2014

 



10 February 2014

HgCapital, the Manager of HgCapital Trust plc ("The Trust"), today announces an investment in Relay Software Limited ("Relay") in partnership with the company's founding management.

Relay is a leading provider of software to insurance brokers, underwriters and insurers in the Republic of Ireland. This transaction marks the third investment of the HgCapital Mercury fund which targets lower mid-market buyouts in selected TMT sub-sectors across Europe.

HgCapital Trust plc will invest in Relay alongside other institutional clients of HgCapital, who will participate through the HgCapital Mercury fund. The Trust, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all HgCapital's investments. The Trust will contribute a total of approximately £2.2 million.

Based on the 30 November 2013 reported NAV (and after adjusting for the impact of all reported transactions since 30th November) the Trust's liquid resources available for future deployment are estimated to be £86 million (20% of the 30 November 2013 adjusted NAV). The transaction will reduce the Trust's outstanding commitments to invest in HgCapital deals to approximately £255 million.

HgCAPITAL ANNOUNCES INVESTMENT IN RELAY SOFTWARE

HgCapital has announced that it has partnered with the founder management of Relay Software Ltd. ("Relay").

Relay is a leading provider of software to insurance brokers, underwriters and insurers in the Republic of Ireland. This transaction represents the third investment from HgCapital's Mercury fund which specialises in investments in software and other technology companies across Europe. The terms of the transaction were not disclosed.

Relay was founded in 1985 and has since grown to become one of the leading software providers to the insurance industry in the Republic of Ireland. Relay's highly capable and successful management team will continue to lead the business and guide the development of its technology solutions. With a skilled staff of 70 based in its offices in Belfast and Dublin, Relay provides the leading technology solution to insurance brokers: a seamless front and back office solution which, supported by Relay's excellent customer service, provides its broker customers with the tools that they need to manage a successful insurance business. Additionally, the company also provides software solutions to many of the largest insurance and underwriting firms operating in the Republic of Ireland.

Relay displays a number of the attractive investment characteristics targeted by HgCapital, and leverages HgCapital's deep-sector focus and experience in investing in the European SME software market. The investment follows on from HgCapital's recent investments in Intelliflo (UK - cloud technology for financial advisors), e-conomic (Denmark - financial software for SMEs) and P&I (Germany - HR software), all in late 2013.

HgCapital's investment will assist Relay's management team in developing new products and services for all of its customers and will ensure that Relay continues to provide the most advanced and efficient technology solutions available. Management remain a substantial shareholder in the business alongside HgCapital and the company will continue to be headquartered in Belfast.

David Issott, of HgCapital's Mercury Fund said:

"We are delighted to be partnering with all of the management and team at Relay. The company is a very successful technology leader in its segment and provides a first class service to its customers with a best in class product offering. We look forward to working with everyone at Relay to continue to build on the existing success of the business."

Alastair Bell, Managing Director of Relay, said:

"We are very excited to be partnering with HgCapital for this next step in our company's journey. Innovative new product development and ensuring we meet all of the needs of our customers with great products, backed by a strong service culture, have always been at the forefront of our strategy and has enabled us to deliver strong growth. HgCapital brings market insight, years of investment expertise and unparalleled knowledge of the technology and financial services sectors which we believe will help us continue to lead innovation in the sector for the benefit of all of our clients."

HgCapital was advised on the transaction by Ernst & Young, with legal advice provided by Shearman & Sterling. Relay Software was advised on the transaction by Beltrae Partners, with legal advice provided by Tughans.

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For further details:

HgCapital

Stephen Bough                [phone]

Maitland

Peter Ogden                    [phone]

Tom Eckersley                [phone]

About HgCapital Trust plc

HgCapital Trust plc is an investment trust whose shares are listed on the London Stock Exchange (ticker: HGT.L). The Trust is a client of HgCapital, giving investors exposure to a portfolio of high-growth private companies, through a liquid vehicle. New investments and existing portfolio companies are managed by HgCapital, 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

Neither the contents of HgCapital's, HgCapital Trust's or Relay's websites nor the contents of any website accessible from hyperlinks on the websites (or any other website) is incorporated into, or forms part of, this announcement.

 

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