HgCapital Trust PLC Hg investment in The Access Group (3273K)

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RNS Number : 3273K

HgCapital Trust PLC

10 April 2018

10 April 2018

Hg, the Manager of HgCapital Trust plc (the "Company"), has announced today an investment in The Access Group ("Access"), one of the UK's leading providers of business management software to mid-market companies. The terms of the transaction were not disclosed.

HgCapital Trust plc will invest approximately GBP30.9 million in Access, with other institutional clients of Hg investing alongside the Company through the Hg 8 Fund.

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.

Based on the 28 February 2018 NAV, the Company's liquid resources available for future deployment, including all announced transactions and the proposed dividend payable in April 2018, are estimated to be GBP125 million (17% of the 28 February 2018 NAV of GBP719 million). In addition, the Company has access to an GBP80 million standby facility, which is currently undrawn. The investment will reduce the Company's pro-forma outstanding commitments to invest in Hg transactions over the next four to five years to approximately GBP623 million.

The Access Group announces strategic investment from Hg alongside existing investor TA Associates at an enterprise value of GBP1 billion

London, UK, 10 April, 2018 - The Access Group, a leading provider of fully integrated business management software to UK mid-market organisations, announced today a strategic investment from Hg valuing the business at an enterprise value of approximately GBP1 billion. Current majority shareholder TA Associates will retain joint control of The Access Group.

With its portfolio spanning Finance, HR, Payroll, Hospitality, Recruitment, Heath & Social Care, Manufacturing & Distribution, Education and Not for Profit sectors, The Access Group is the leading vendor of mission-critical business software to mid-market organisations in the UK.

Chris Bayne, CEO of The Access Group, commented, "We have enjoyed our close partnership with the team at TA Associates, and we're very proud of the considerable growth we've achieved together to date. We look forward to continuing our relationship with them and welcoming our new investors, Hg, to further assist us in our journey as one of the UK's leading providers of cloud-enabled business application software. With these two marquee investors, we will have access to significant resources and expertise to continue to deliver innovation and value for our clients."

"We are very impressed by Chris Bayne, his strong management team and vision for the business, focused on delivering an ever-expanding portfolio of mission-critical software to a growing base of very satisfied and loyal customers." said Jonathan Boyes, Partner at Hg.

"It has been a pleasure to partner with Chris Bayne and his team since we invested in the business in January 2015," said J. Morgan Seigler, Managing Director at TA Associates. "The business has experienced strong organic growth, executed 11 acquisitions, entered three new vertical markets and grown its customer base to more than 12,700 UK businesses and not-for-profit organisations. We look forward to partnering with Hg to support the company through its next phase of growth."

Arma Partners is serving as financial advisor to The Access Group. Harris Williams is serving as advisor to The Access Group's Management. Travers Smith is serving as legal advisor to TA Associates and The Access Group. Linklaters is serving as legal advisor to Hg.

For further details:

Hg

Laura Dixon [phone]

Maitland

Vikki Kosmalska [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 Company is a client of Hg, giving investors exposure to a portfolio of high-growth private companies, through a liquid vehicle. New investments and existing portfolio companies 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.

Neither the contents of Hg Capital Trust's, Hg's, Access Group's or TA Associates' 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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April 10, 2018 02:00 ET (06:00 GMT)