Hg, the Manager of HgCapital Trust plc ("HgT"), today announces that it has agreed the sale of F24 a leading European software-as-a-service (SaaS) provider for Business Resilience solutions.
The terms of the transaction have not been disclosed and completion is subject to closing conditions.
HgT, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all Hg's investments.
This transaction values HgT's investment in F24 at approximately £18.4 million. This would represent an uplift of £0.8 million (4% or 0.2 pence per share) over the carrying value of £17.6 million in the Net Asset Value ("NAV") of HGT at 31 March 2024.
Note that these figures only relate to HgCapital Trust's share of Hg's overall investment in F24.
Based on the 31 March 2024 reported NAV, the pro-forma NAV of the Trust is expected to be £2.3 billion (or 511 pence per share). HgT's available liquid resources, which includes the undrawn bank facility of £375 million for future deployment (including all announced transactions and the final dividend paid in May) are estimated to be £582 million (25% of the pro-forma 31 March 2024 NAV).
F24 to accelerate growth with new strategic investment from Altor
- Altor to acquire a majority stake in F24, a leading European SaaS provider for Business Resilience software solutions, from Hg, who have been invested since 2020 and will retain a minority investment.
- The investment will support F24 as it continues to scale its operations across Europe and beyond, with a strong focus on innovation and customer service.
Munich, Germany, and Stockholm, Sweden. 1 July 2024. F24 AG ("F24" or "the Company"), a leading European software-as-a-service (SaaS) provider for Business Resilience solutions, today announced that it has secured a strategic investment from Altor, a leading private equity firm focused on investing in and developing medium-sized companies.
Altor will acquire F24 from Hg, a leading investor in European and transatlantic software and services businesses. F24's management team will reinvest in the Company. This partnership positions F24 for accelerated growth and continued regional expansion.
Founded in 2000, F24 supports companies and organisations in more than 100 countries around the globe. Its Business Resilience software solutions empower businesses to save lives and values. F24 is a sector leader in Europe, has expanded across geographies and now supports over 5,200 customers across the globe.
Dr. Jörg Rahmer and Christian Götz, executive board at F24, said: "We are excited to embark on this new chapter of F24 with Altor. With their extensive experience and network, we will be able to accelerate our growth and continue to provide our customers with innovative solutions across the entire Business Resilience value chain. We also want to thank Hg for their support and trust over the past years. They have been instrumental in our success story."
"We are excited to join forces with co-founder Christian Götz, Dr. Jörg Rahmer and the management team at F24. F24 is a pioneer in building organisational resilience in the face of an increasingly volatile world. Their commitment to delivering high-quality solutions has earned them a stellar reputation across Europe and a loyal customer base. Together with Hg we look forward to accelerating F24's growth and expansion into new markets" said Hajo Krösche, Partner at Altor.
F24 partnered with Hg back in 2020. Since then, the business has established itself as a trusted leader in the sector, with a strong reputation, and develiered a combination of organic growth and strategic acquisitions. These acquisitions together with investments in innovation allowed F24 to expand the customer offering across the entire Business Resilience value chain.
Benedikt Joeris, Partner at Hg, said: "We are proud to have been part of F24's successful journey over the past years. F24 has yet again proven its long-term track record of compounding growth. We thank Jörg, Chris and the entire F24 team for their hard work and commitment - it has been a trusted collaboration."
Closing is subject to customary regulatory clearances.
For further details:
Hg
Tom Eckersley +44 (0)208 148 5401
HGT
Laura Dixon +44 (0)20 8396 0930
Brunswick
Azadeh Varzi +44 (0)207 404 5959
Hg@brunswickgroup.com
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 software and services 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.
The contents of the Hg, HgCapital Trust, F24 and Altor websites are not incorporated into, and do not form part of, this announcement.
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