Sale of Orbiscom

RNS Number : 1011L

HG Capital Trust PLC

05 January 2009

 



HgCapital Trust plc sells investment in Orbiscom adding 18.6 pence to NAV

London, 5 January 2009: Set out below is the text of a press release issued today by HgCapital, which manages the investment portfolio of HgCapital Trust plc alongside those of other institutional clients. The Trust is a listed investment trust which provides an efficient vehicle for private investors and smaller institutions to participate in all HgCapital's investments. 

The sale of Orbiscom, which is at 6.7 times carrying value and represents a multiple of over 1.8 times original cost, realises a total of £5.5 million for HgCapital Trust plc, increasing the Trust's holding of cash for investment in new transactions to £128.8 million. The Trust has no borrowing.

Completion of the sale of Orbiscom increases the net asset value of HgCapital Trust plc by approximately 18.6p per share over the published 30 November 2008 net asset value of 1,102.92p per share. 

HgCapital sells Orbiscom to MasterCard

HgCapital, the European sector-focused private equity investor, has today completed its current round of exits with the sale of Orbiscom for approximately $100m to MasterCard. 

Orbiscom is the leading provider of enhanced B2C, B2B and P2P payment solutions to the global payments industry, primarily providing solutions based on its patented Controlled Payment Number™ technology. 

This is HgCapital's 30th exit since June 2005. Realisations since June 2005 have delivered proceeds of approximately £2 billion at an average multiple of 2.7 times the cost of the original investments. 

HgCapital has successfully continued to realise investments since the start of the credit crisis in June 2007, with 16 realisations achieved over that period. These sales have realised £1.2 billion, again at an average multiple of 2.7 times original cost. 

HgCapital invested in Orbiscom in 2001 and has worked with the company's management, led by Garry Lyons, to develop its capabilities in the electronic payment market. HgCapital welcomes MasterCard as the ideal owner for the business given its pre-eminence in the payment sector and innovative culture.

Ian Armitage, Chairman of HgCapital, said: 'This transaction brings to an end a round of successful realisations for HgCapital in recent months despite the challenging market conditions. 

'Orbiscom was one of a number of technology investments we made after the collapse of the technology boom in 2001 and 2002, which have proved extremely successful overall, thanks to our sector specialisation and the quality of management we have backed. Garry Lyons, the CEO of Orbiscom, has done an outstanding job in turning potential into reality.

'Looking ahead, we appear to be entering a buyers' market for corporate assets once more, with valuations at a 20-year low. High quality businesses will require fresh investment and supportive investors and this provides ample opportunities for private equity firms such as HgCapital which have both available capital and deep industry experience.'

-Ends-

Contacts: 

HgCapital
Ian Armitage	Tel: [phone]
Maitland
Neil Bennett George Hudson	Tel: [phone]

About HgCapital

HgCapital is a private equity investor in the European mid-market. We focus on investments with an enterprise value in the range of £50-500 million. Our business model combines sector specialisation with dedicated, proactive support to our portfolio companies as well as the application of significant human resource and the corresponding management expertise across all phases of the investment process. HgCapital manages more than €2.0 billion for some of the world's leading institutional and private investors. Our goal is to achieve outstanding results for our investors, management team and intermediaries.

For further details, see www.hgcapital.com

 

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