HgCapital, the Manager of HgCapital Trust has announced that it has made a majority investment in Sovos Compliance, a global provider of regulatory tax compliance software. HgCapital is the lead investor, alongside Vista Equity Partners. The terms of this transaction were not disclosed. HgCapital Trust is investing in Sovos alongside other institutional clients of HgCapital, who will participate through the HgCapital 7 Fund. The Trust will contribute a total of approximately £24.9m, including approximately £8.4m in co-investment.
HgCapital say that Sovos acquisition represents the seventh investment by the HgCapital 7 Fund, and following completion, the Fund will be approximately 51% invested. They also say that, based on the 30 November 2015 reported NAV (including all announced transactions) the HgCapital Trust’s liquid resources available for future deployment are estimated to be £59.3m (12% of the pro-forma 30 November 2015 NAV, excluding a £40m standby facility). HgCapital say that the transaction will reduce the Trust’s outstanding commitments to invest in HgCapital deals to approximately £138m (28% of the pro-forma 30 November 2015 NAV).
Sovos is a global provider of taxation compliance solutions, managing all aspects of the tax compliance process, from tax calculation, forms completion and ultra-high-volume filing to secure funds transfer to state and local revenue departments. HgCapityal say they will work closely with the management team and Vista to accelerate Sovos’ strong, organic growth and support further accretive M&A to build a global software champion.
HgCapital Trust to invest in £24.9m in Sovos Compliance : HGT