Hg, the Manager of HgCapital Trust plc ("HGT"), today announces that it has agreed the sale of Allocate, a leading workforce and people management software-as-a-service (SaaS) provider to healthcare and government organisations, to RLDatix, the leading global provider of intelligent patient safety 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 Allocate at approximately £53.5 million. This would represent an uplift of £9.4 million (21% or 2.2 pence per share) over the carrying value of £44.1 million in the Net Asset Value ("NAV") of HGT at 31 March 2021.
Note that these figures only relate to HgCapital Trust's share of Hg's overall investment in Allocate.
Based on the 31 March 2021 reported NAV, the pro-forma NAV of the Trust is expected to be £1.5 billion (or 338.1 pence per share). HGT's liquid resources available for future deployment (including all announced transactions, and equity raised via tap issuance) are estimated to be £220 million (15% of the pro-forma 31 March 2021 NAV).
Hg agrees the sale of Allocate to RLDatix
Together Hg and Allocate have created a leading global platform in healthcare Human Capital Management software
London, United Kingdom. 28 June 2021. Hg, a leading global software and services investor, today announces that it has agreed the sale of Allocate, a leading workforce and people management software-as-a-service (SaaS) provider to healthcare and government organisations, to RLDatix, the leading global provider of intelligent patient safety solutions.
The terms of the transaction have not been disclosed and completion is subject to customary closing conditions.
Allocate Software is a leading international provider of Human Capital Management solutions, supporting the operational and administrative needs of health, care, government organisations and commercial sectors. In the health and care sector, 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. With over 800 clients and over two million staff rostered daily, Allocate serves the largest public and private sector institutions around the world.
Hg's focus on healthcare technology led to an initial investment in Allocate at the end of 2014, completing a public-to-private transaction from the London Stock Exchange. Since then Hg has worked with management and invested materially to enhance Allocate's software suite, achieve greater customer engagement, helped the business to enter new geographies and created a strong growth platform, with four strategic acquisitions in the last four years.
David Issott and Jean-Baptiste Brian, Partners at Hg, said: "We wish the Allocate team well after what has been a tremendously enjoyable and productive seven years. Allocate provides a critical service and has earned a position as a valued champion in the health sector through a history of continuous product innovation, business model improvements, successful geographic expansion and, today, employs three times more people than when we first invested. We're really proud of the work we have achieved together."
For further details:
Laura Dixon +44 (0)20 8396 0930
Samantha Chiene +44 (0)207 404 5959
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, Allocate and RL Datix websites are not incorporated into, and do not form part of, this announcement.