Strong activity across the portfolio

Strong activity across the portfolio

  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • Hg Saturn Fund makes new joint partnership investment in IRIS with ICG

    23/05/2018 UK’s largest ever and Europe’s third largest ever private equity led software buyout, representing an EV of around £1.3bn. Investment in IRIS follows the company’s positive track record, solid long term strategy and strong executive leadership. ICG to take a joint partnership stake alongside Hg, acknowledging Hg’s strong 14 year relationship, in-depth knowledge and experience with IRIS. Second investment from Hg Saturn Fund, launched in 2017. In aggregate, Hg’s investments in software businesses have an enterprise value of more than $17billion, making Hg the owner of the fourth largest software group in Europe, after SAP, Amadeus and Dassault. 23 May 2018 - Hg Saturn Fund and Intermediate Capital Group (“ICG”) announce today a joint partnership investment into IRIS, a leading provider of business-critical software and services to the UK accountancy, education and business market, representing the largest UK and third largest European private equity software buyout ever. The terms of the transaction are not disclosed and closing is subject to regulatory approvals. Over 21,000 accountancy practices and more than 80,000 small and mid-sized businesses, corporates, and payroll bureaus rely on IRIS to run their business every day. IRIS exhibits a number of Hg’s ‘sweet spot’ business model criteria, including a strong product offering, a loyal customer base, superior software metrics with high degrees of recurring revenue and cash flow conversion and a proven M&A platform with significant cross-sell opportunities. IRIS has a strong performance track record, demonstrating consistent revenue growth over the last 17 years, driven by deep domain knowledge, as well as a good breadth and depth of functionality across its product portfolio. Hg will invest alongside ICG, with both parties having joint partnership in IRIS.  Hg’s investment will come from the Hg Saturn Fund, which had its first close in early 2018.  The Fund focuses on software businesses with Enterprise Values of more than £1 billion. The Hg6 Fund has sold 100% of its interest in the business to Hg Saturn and ICG. The sale follows a competitive auction process, launched in March 2018. ICG submitted a compelling bid for participating in this investment, acknowledging Hg’s strong relationship, in-depth knowledge and experience with IRIS over the last 14 years since Hg first acquired the business in 2004. The realisation of IRIS will deliver an overall return to Hg6 clients of 4.2x original invested cost and a gross IRR of 26%. Hg6 originally invested in IRIS in December 2011 and over the course of the Fund’s investment, the business has experienced strong revenue, EBITDA and cash flow growth, across market cycles. At an exit valuation of £1.3bn, the business has more than trebled in size over the last 6 years. This is the 18th exit from the Hg6 Fund to date, and following completion of the sale the Fund will have returned c. 207% of invested cost to Hg6 investors. Nic Humphries, Senior Partner and Head of the Saturn fund at Hg, said: “Hg first invested in the tax and regulatory compliance software market in 2004 via IRIS.  Since then we have invested in 11 platform companies and more than 200 acquisitions – we currently own businesses worth over $10bn in this sector including IRIS, Visma and Sovos, all growing faster than their peers.   This clustered investment strategy gives us unique insights and experience which benefit the companies we back, their customers and their employees.  We are delighted to back Kevin Dady and his team again through our Hg Saturn Fund.” Benoit Durteste, CIO of ICG said: “ICG is delighted to invest in IRIS and once again support Hg.  We have worked together with Hg successfully on software deals including Visma and Team System, and they have a proven track record in this sector.  In our opinion IRIS is a first class business with a great track record led by a talented management team, focused on regulatory and compliance driven software solutions.  IRIS is well positioned for further organic and inorganic growth. It is a great way for us to start our new ICG European Fund VII.” Kevin Dady, CEO of IRIS said: “The renewed Hg investment, alongside ICG, is recognition of continued success. We’ve developed best-in-class products across the businesses, continuously improved customer service and extended our product portfolios through strategic acquisitions to either enter new or grow existing markets. We look forward to continuing our strong working relationship with Hg and also look forward to working with ICG; supported by a solid long-term strategy, an exceptional leadership team and talented employees as we will continue our mission - to help businesses stay one-step-ahead of their competition.” Hg Saturn was advised on this transaction by DC Advisory, Linklaters and OC&C. IRIS was advised by Arma Partners, Skadden, Deloitte and Bain & Co.

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  • Hg agrees sale of JLA to Cinven

    14/05/2018 Sale of JLA delivers 4.9x return to the Hg6 Fund (2009 vintage). JLA more than doubled in size during Hg investment, successfully developing new product categories and significantly growing total employment. 17th exit from Hg6 to-date and the 5th exit from Hg in 2018.  14 May 2018. Hg today announces the sale of JLA, a UK sector leader for critical assets solutions in the commercial laundry, catering, heating and fire safety markets, to Cinven. The closing of the transaction is subject to regulatory approval and the terms are not disclosed. JLA provides equipment, supply and services solutions across commercial laundry, catering, heating and fire safety to customers across the UK, primarily through its ‘Total Care’ offering. Total Care provides customers with a hassle-free solution for running critical areas of their business, minimising downtime and maximising peace of mind for business owners. Hg’s Services team invested in JLA at the beginning of 2010, identifying JLA as a ‘hidden champion’ services business. JLA displays best-in-class services characteristics: stable and predictable revenue streams, growth from both existing and new customers, and a wide customer base with high customer satisfaction levels. Since 2010, in addition to the organic development of new product offerings in the Catering, Heating and Fire Safety markets, JLA has successfully completed 16 bolt-on M&A transactions. During this time the business has more than doubled in size, with employment increasing from 310 to 900 across the UK. Thorsten Toepfer and Joris Van Gool, Hg, said: “JLA has been a strong performing business, displayed by its 25 year-on-year unbroken growth track record. Hg has supported management to enable this growth during our 8-year investment period, including a variety of operational projects covering new product development, digital marketing and acquisitions. Hg’s investment returns have been driven by the combination of impressive revenue and EBITDA growth, as well as accretive M&A delivered by a world-class management team. We have really enjoyed working with the JLA team and we wish them well as they continue their success.” Stephen Baxter, CEO of JLA, said: “JLA has enjoyed an incredibly successful period during our partnership with Hg. The operational projects we have undertaken together have proved valuable, whilst the M&A activity has helped expand and diversify our services. We look forward to working with Cinven, who we’re confident will help us maintain this momentum and continue JLA’s future growth.” The sale of JLA will deliver an overall return to Hg6 clients of 4.9x original cost, generating a gross IRR of 26%. The realisation of JLA represents the 17th exit from Hg6 to-date and the 5th exit from Hg in 2018. Advising on the transaction were Baird (Corporate Finance), Deloitte (FDD), Skadden (Legal), EY-Parthenon (CDD).

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  • Hg makes strategic investment in FE

    14/05/2018 14 May 2018. Hg today announces a significant investment in FE, a leading data, analytics and software vendor focussed on the UK and Australian retail investment funds markets. The terms of this transaction were not disclosed. Completion of this transaction is subject to regulatory approval. Founded by Michael Holland and Craig Wilson, FE is a leading provider of investment data, research and software to the financial services industry in the UK and operates a proprietary database of complete retail funds data with global coverage and history, built up over 20 years. Trusted by hundreds of thousands of investors, advisers, asset managers and platforms who use FE data, software and investment advice every day, FE is a leading player in supporting the UK fund industry. The investment will be made from the Mercury 2 Fund. FE has a number of business characteristics that Hg looks for, including a strong position in the wealth / asset management software and data sector, a well-recognised brand, mission-critical products, and a strong management team led by Neil Bradford. The investment comes on the back of significant expansion of FE’s global operations and product offering over the past few years, and another year of record growth for the company in 2017. Sebastien Briens, Partner at Hg, said: “We have been following FE for a number of years, and have been impressed by the strength and depth of its data, products, team and vision. We are very pleased to partner with Michael, Craig and Neil in the next stage of growth for the business.” Neil Bradford, CEO at FE, said: “Hg’s track record and experience in our sector means they are the perfect partner to continue FE’s growth strategy and international expansion ambitions. We look forward to working with the Hg team.” Michael Holland, co founder of FE, said: “Data is at the foundation of everything we do and Hg has a deep understanding of the fund data space.  I am confident that this partnership will hugely benefit our clients.” FE was advised by Portico Capital (M&A), Travers Smith (legal) and EY (finance/tax). Hg was advised by Cardean Bell (M&A), Linklaters (legal) and Deloitte (finance/tax).

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  • Hg invests in MediFox

    10/05/2018 10 May 2018. Hg today announces an investment into MediFox, a leading provider of software solutions to outpatient and inpatient care providers and therapy practices in Germany. The investment follows an exit from private equity funds managed by Equity Capital Management (“ECM”). The closing of the transaction is subject to regulatory approval and the terms are not disclosed. Founded in 1994, MediFox is a leading provider of software solutions to over 6,000 ambulatory care services, elderly care homes and therapists in Germany. Its software solutions support care providers with key services including resource and route planning, care and support documentation, management information systems, as well as billing, factoring and administration services. It is headquartered in Hildesheim, Germany and employs 265 people. The investment, which will be made from the Mercury 2 Fund, recognises MediFox’s attractive business model characteristics, being a well-established player with a strong position in a fragmented sector,  showing a positive underlying growth trajectory whilst also having a ‘mission-critical’ product offering, a robust financial profile and a highly competent management team. Stefan Margolis, Director at Hg, and Kai Romberg, Partner at Hg, said: “We have been following the progress and success of MediFox for many years and recognise the strength of the business and the opportunity for further growth, both organically and through acquisitions. Our expertise and focus on software and Healthcare IT, following previous investments in Allocate Software and Evaluate, along with our strong presence in Germany, means we are well placed to support management in taking the business on to its next phase of growth.” Christian Städtler and Dr. Thorsten Schliebe, both Managing Directors at MediFox, said: “We want to thank ECM for their strong support over the last 5 years. We look forward to leveraging Hg’s experience and track record in working with software and healthcare companies to further strengthen and expand MediFox’s position, as we continue our journey towards further growth.”

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  • Hg agrees sale of Teufel to Naxicap Partners

    30/04/2018 30 April 2018: Hg today announces the sale of Teufel, a leading European direct-to-consumer online brand for audio solutions, based in Germany, to Naxicap Partners, one of France’s leading private equity companies. Teufel’s ability to control its entire value chain puts it in a unique position and enables it to offer better value for money to its customers. Based in Berlin with around 200 employees, Teufel is focused on the mid-to-high-end segment of the audio solutions market and has built a very strong customer base over the last 40 years. Since Hg partnered with Teufel in 2010, it has supported the successful transition from a traditional loudspeaker company to a high-quality brand for state-of-the-art audio solutions, through the introduction of new categories and technologies, including wireless streaming, headphones and portables. Martin Block and Stefan Margolis, Hg, said: “We wish Sascha and Joachim well for the next phase of growth and we congratulate them and the team at Teufel for the great results over the last few years. Teufel has achieved a number of milestones during this time, including the acquisition of Raumfeld in 2010 and substantial revenue growth, increasing from around €40m to over €100m today.” Sascha Mallah and Joachim Wimmers, Managing Directors at Teufel said: “We are very happy to be joining forces with Naxicap Partners, a very successful and experienced investor in the field of consumer audio. Together we are going to tap Teufel’s full potential across new markets. We will continue to offer our core products, such as AI speakers, headphones, portable audio and compact home cinema, to a wider direct customer base. We want to thank Hg for their strong commitment over the years and highly valuable support. The future will be loud!”

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  • Hg agrees sale of Radius to Vistra

    26/04/2018 26 April 2018. Hg today announces the sale of Radius to Vistra, one of the world’s leading corporate service providers of international incorporations, trust, fiduciary, and fund administration services.  The terms of this transaction were not disclosed. Radius provides tailored solutions for fast growing companies that are looking to expand into international markets. With more than 500 clients operating in 80 countries around the world, Radius eases and enables the process of international expansion by setting up required international entities then integrating a company’s legal, accounting, payroll, tax and human resources services. Headquartered in the US, Radius now has over 880 employees based in Boston, with offices in San Francisco, Bedford (Massachusetts), Estero (Florida), Mumbai, Indore (India), London, Bristol (United Kingdom), Singapore, Beijing, São Paulo and Amsterdam. Hg’s Services team has previously identified accountancy and trust/administrative services as a core sector and this sits within Hg’s wider focus of partnering with technology-enabled companies. Radius is a leader in a highly fragmented sector with significant growth potential, a growing client base and a high degree of recurring revenue. Hg has worked with the company to strengthen the management team, develop its proprietary technology, undertake M&A opportunities, identify and acquire new talent, support integration and build stronger sales capabilities to fuel continued growth. The combination of Radius and Vistra, backed by Baring Private Equity Asia (“BPEA”), enables the company to continue this trajectory and benefit from the large-scale network, customer base and product capabilities that Vistra brings. Nick Luckock, Partner at Hg, said: “We have joined Radius in its journey to become global growth experts since 2013 and have been delighted to work with Stephen and his team to build a company with unrivalled expertise and global coverage. As the company moves forward to the next stage of its growth, we wish them well as part of Vistra.” Stephen Chipman, CEO at Radius, said: “I would like to thank Hg for being a great partner as we developed Radius into a leading provider of international expansion services for US-based companies. Nick and his team had a transformative impact on our business. We are thrilled to join Vistra, whose expertise and global coverage joined with our own capabilities will allow us to become the market leader in international expansion services.” Martin Crawford, CEO of Vistra, said: “By combining Radius and Vistra’s international expansion services businesses we are significantly growing our expertise and global coverage. Our leading teams on-the-ground in key markets and proprietary technology mean we can deliver the best outcomes for clients as they expand internationally. We warmly welcome Stephen and his team to the Vistra family.” Jefferies International Limited acted as financial adviser to Radius and Hg. Skadden also advised on the transaction.

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