Hg, the Manager of HgCapital Trust, has announced that it has made an investment in Allocate Software, which it describes as, “a leading international provider of workforce solutions to the healthcare, defence and maritime sectors”. The terms of the transaction were not disclosed. HgCapital Trust plc will invest approximately £14.0 million in Allocate, alongside other institutional clients of Hg that are participating through the Hg8 Fund. This transaction is the third investment made by the Hg8 Fund, bringing the fund to c. 27% invested.
Allocate Software, returning to the HG fold
Hg initially invested in Allocate at the end of 2014, completing a public-to-private transaction from the London Stock Exchange. Then, in April 2018, Hg announced the sale of Allocate to Vista Equity Partners. Hg says that, recognising Hg’s considerable expertise in healthcare software and its pan-European footprint, Vista provided Hg with an option to reinvest in the next phase of Allocate’s growth. Hg has now exercised that option to re-invest and partner with Vista by acquiring a co-controlling stake in Allocate.
Liquid resources of £178m
HgCapital Trust says that, based on its 31 May 2018 NAV, its liquid resources available for future deployment, including all announced transactions, are estimated to be £178m (equivalent to 24% of the 31 May 2018 NAV of £746.1m). In addition, the Company has access to an £80m standby facility, which is currently undrawn. The Allocate transaction reduces the trust’s outstanding commitments to invest in Hg transactions over the next four to five years to approximately £520m. HgCapital Trust’s 2018 interim results, including the re-valuation of the portfolio as at 30 June 2018, are set to be announced on 10 September 2018.
About Allocate Software
Allocate Software provides workforce solutions to the healthcare, defence and maritime sectors. It is headquartered in the UK and has 500 employees, with over 190 working in the R&D and product management functions. Hg says that Allocate supports the operational and administrative needs of healthcare professionals in all healthcare settings as well as defence and maritime staff globally. It says that, in healthcare, 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. It also comments that Allocate serves the largest public and private healthcare institutions around the world, with over 800 clients and over a million staff rostered daily – over 700,000 of which are now managed on the ‘Optima’ software-as-a-service (SaaS) platform. In the defence and maritime sectors, Allocate’s Dynama Oneview platform is supporting some of the most prestigious organisations globally helping them make decisions and control costs with time-based management of people, resources and operations.
About HgCapital Trust
Established in 1989, HgCapital Trust is an investment trust listed on the London Stock Exchange. The Trust’s objective is to provide shareholders with long-term capital appreciation in excess of the FTSE All-Share Total Return Index by investing in unquoted companies. HgCapital Trust is managed by Hg (formerly HgCapital), a private equity firm targetting middle-market buyouts across the technology, media and telecommunications (TMT), services, and industrials sectors, primarily in the UK and Continental Europe.
HgCapital Trust exercises option over Allocate Software : HGT