Hg, the manager of HgCapital Trust (HGT), announced 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, a global provider of intelligent patient safety solutions. The terms of the transaction have not been disclosed and completion is subject to closing conditions.
This transaction values HGT’s investment in Allocate at approximately £53.5m. This would represent an uplift of £9.4m (21% or 2.2 pence per share) over the carrying value of £44.1m in the NAV of HGT at 31 March 2021. These figures only relate to HGT’s share of Hg’s overall investment in Allocate.
‘A leading international provider of human capital management solutions’
“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.”
HGT goes on to say that “based on the 31 March 2021 reported NAV, the pro-forma NAV of the Trust is expected to be £1.5bn (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 £220m (15% of the pro-forma 31 March 2021 NAV).”
HGT: HgCapital Trust’s manager agrees sale of Allocate