HgCapital Trust PLC Hg investment into Allocate Software from Hg8 Fund (1927Z)

TIDMHGT

RNS Number : 1927Z

HgCapital Trust PLC

30 August 2018

Hg Capital Trust plc

Hg, the Manager of HgCapital Trust plc (the "Company"), has announced today an investment in Allocate Software ("Allocate"), a leading international provider of workforce solutions to the healthcare, defence and maritime sectors.

The terms of the transaction were not disclosed.

HgCapital Trust plc will invest approximately GBP14.0 million in Allocate, with other institutional clients of Hg investing alongside the Company through the Hg8 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.

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

Based on the 31 May 2018 NAV, the Company's liquid resources available for future deployment, including all announced transactions, are estimated to be GBP178 million (24% of the 31 May 2018 NAV of GBP746.1 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 GBP520 million.

The Company's 2018 interim results, including the re-valuation of the portfolio as at 30 June 2018, will be announced on 10 September 2018.

Hg announces investment into Allocate Software from Hg8 Fund

30 August 2018. Hg today announces an investment in Allocate Software ("Allocate"), a leading international provider of workforce solutions to the healthcare, defence and maritime sectors.

Allocate supports the operational and administrative needs of healthcare professionals in all healthcare settings as well as defence and maritime staff globally. In healthcare Allocate is enabling the delivery of safe and effective care at optimal cost, by helping organisations to have the right people in the right place at the right time. Allocate serves the largest public and private healthcare institutions around the world, with over 800 clients and over a million staff rostered daily - over 700,000 of which are now managed on the 'Optima' software-as-a-service (SaaS) platform. In the defence and maritime sectors, Allocate's Dynama Oneview platform is supporting some of the most prestigious organisations globally helping them make decisions and control costs with time-based management of people, resources and operations.

Allocate has 500 employees, with over 190 working in the R&D and product management functions. It is headquartered in the UK.

Hg initially invested in Allocate at the end of 2014, completing a public-to-private transaction from the London Stock Exchange. In April 2018, Hg announced the sale of Allocate to Vista Equity Partners ("Vista").

Recognising Hg's considerable expertise in healthcare software and its pan-European footprint, Vista provided Hg with an option to reinvest in the next phase of Allocate's growth. Hg is pleased to announce that it has exercised that option to re-invest and partner with Vista by acquiring a co-controlling stake in Allocate. This will represent the third investment made by the Hg8 Fund, bringing the fund to c. 27% invested.

Jean-Baptiste Brian and David Issott, Partners at Hg, said: "Hg invests in businesses that demonstrate compelling long-term growth potential and we are looking forward to working with the Allocate team, continuing to deliver the company's ambitious plans. This opportunity to invest is a testament to the further potential we see with Allocate and our positive relationship with the company. Healthcare technology is a core investment area for Hg: Allocate is the third investment in the cluster announced this year, after MediFox and Rhapsody."

"We are excited to continue to work with the Allocate team to grow their business and provide their platform and technology to even more healthcare providers and professionals across the globe," said Alan Cline, Principal and Co-Head of the Foundation Fund at Vista. "Hg's re-investment in Allocate is an affirmation of Allocate's strategy and growth potential moving forward, and we are thrilled to have Hg as an investment partner."

The terms have not been disclosed. Spurrier Capital Partners served as financial advisor to Vista.

For further details:

Hg

 
 Laura Dixon    [phone] 
 

Maitland

 
 Vikki Kosmalska and Seda Ambartsumian    [phone] 
 

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 technology and tech-enabled 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.

Neither the contents of HgCapital Trust's, Hg's, Vista's or Allocate'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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August 30, 2018 02:00 ET (06:00 GMT)