HgCapital re-invests in UK business software firms

RNS Number : 5052T

HG Capital Trust PLC

07 December 2011

 



HgCapital Trust plc will participate in the acquisition of a majority stake in IRIS Software Group Limited ("IRIS") alongside other institutional clients of HgCapital. 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. IRIS will be split into two entirely separate companies, being Iris Accountancy Solutions and Iris Software Group. The Trust will contribute a net total of approximately £26.5 million, split between the two separate companies. 

Based on the 30 November 2011 NAV and the impact of this transaction, liquid resources are estimated to be £72.7 million (20% of the 30 November 2011 NAV) and the Trust's outstanding commitments to HgCapital funds is £247.1 million.

HgCapital re-invests in the UK business software firms, IRIS Accountancy Solutions and IRIS Software Group

London, 7 December 2011: HgCapital, the European sector-focused private equity investor, has today announced that, following the separation of IRIS into two operating businesses; IRIS Accountancy Solutions ("IAS") and IRIS Software Group ("ISG") , it has acquired a majority stake in both independent businesses, from the US-based private equity firm, Hellman & Friedman. HgCapital has held a stake in IRIS since 2004, and has been a minority shareholder alongside Hellman & Friedman since 2007. IRIS Accountancy Solutions is the UK's leading provider of specialist applications software and solutions to the UK Accountancy and Payroll sectors, whilst IRIS Software Group operates in various other vertical software markets.

This investment represents a continuation of HgCapital's thematic, sector-driven investment strategy, representing HgCapital's seventh investment in the regulatory-driven SME software sector. HgCapital has built a reputation as a partner of choice for regulatory-driven SME businesses, which benefit from above-GDP growth trends, low customer churn rates, and contracted earnings models. HgCapital's other current investments in the sector include TeamSystem in Italy, and Visma in Norway, and its previous investments include Addison in Germany.  HgCapital intends to use this experience to support the management teams of the two new IRIS companies as they continue to grow their businesses.

Nick Discombe, who remains as Chairman of both companies, said, "This represents a significant vote of confidence from HgCapital.  They have a good understanding of the strengths and market positions of IRIS Accountancy Solutions and IRIS Software Group and their expanded investment demonstrates their belief that we can achieve further significant growth."

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For further details please contact:

HgCapital:	Alex King	[phone]
Maitland:	Neil Bennett, George Hudson	[phone]
IRIS Accountancy Solutions & IRIS Software Group:	Nick Discombe	[phone]

About HgCapital

HgCapital is a sector expert private equity investor, supporting management teams to grow industry champions.  Deeply resourced sector teams focus on specific sub-sectors and investment themes to identify companies occupying an established position within a niche, which have the potential to grow faster than their market, create employment and become the leader in their industry.  HgCapital's dedicated portfolio management team provides practical support to management teams to help them realise their growth ambitions.  HgCapital invests in expanding segments of the Healthcare, Industrial, Services, TMT and Renewable Energy sectors across Western Europe.   

Based in London and Munich, HgCapital manages over £3.6 billion for some of the world's leading institutional and private investors.  For further details, please see www.hgcapital.com.

About HgCapital Trust plc

HgCapital Trust plc is an investment trust whose shares are listed on the London Stock Exchange.  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.  The Trust has won the Investment Week Private Equity Investment Trust of the Year every year since in 2005.  For further details, please see www.hgcapitaltrust.com

Neither the contents of HgCapital's, HgCapital Trust's nor Iris's (IAS or ISG) website 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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