Hg Capital Trust has announced that its manager, Hg Capital, has made investments in Zitcom and ScanNet, two leading Danish hosting and cloud solutions providers. The terms of the transactions were not disclosed. Hg Capital Trust will invest in Zitcom and ScanNet, alongside other institutional clients of Hg Capital, who will participate through the Mercury TMT Fund. Hg Capital’s Mercury Fund focuses on growth buyouts in the technology sector across Europe and Hg Capital Trust will contribute a total of approximately £3.2m to the purchases.
The managers say that the combined acquisitions of Zitcom and ScanNet represent the seventh investment by the Mercury TMT Fund and, following completion, the Fund will be approximately 45% invested. They also say that, based on the 30 November 2015 reported NAV (including all announced transactions) the Hg Capital Trust’s liquid resources available for future deployment are estimated to be £84.2m (17% of the pro-forma 30 November 2015 NAV, excluding a £40m standby facility). The transaction will reduce Hg Capital Trust’s outstanding commitments to invest in Hg Capital deals to approximately £154m (31% of the Hg Capital Trust’s pro-forma 30 November 2015 NAV).
In terms of strategy, Hg Capital’s say their objective is to support the Zitcom and ScanNet in building a clear champion in Denmark. The managers say that the companies have an excellent reputation for service delivery, unique operating platform and attractive multi-brand strategy. They say that, in their view, the combination of Zitcom and ScanNet will create a business with a leading position in both mass and managed hosting markets for SMEs in Denmark.
Zitcom was founded in 2000 and operates under the Wannafind, UnoEuro, Curanet and Zitcom brands. It provides cloud services to more than 100,000 business and private customers in Denmark. ScanNet was founded in 1995 and provides services to a further 13,000 customers.
Hg Capital Trust to invest in Denmark’s Zitcom and ScanNet : HGT