Hg, the Manager of HgCapital Trust, has announced that its investee company Ideagen, a trusted name in software solutions for regulated industries, andfellow investee company ProcessMAP, a leading Environmental, Health and Safety software platform provider are to be merged and Hg will remain as majority investor in the combined business. The transaction is expected to close in 2022 and is subject to customary closing conditions.
Following the merger, ProcessMAP become “ProcessMAP – an Ideagen solution”. Hg says that ProcessMap customers will benefit from Ideagen’s expertise as a leading regulatory software provider and access to a wider portfolio of solutions including quality, collaboration audit, and risk management. It also provides an opportunity for Ideagen to enhance its health and safety offering to the 10,000 organisations it already supports worldwide.
The transaction values HGT’s existing investments in ProcessMAP and Ideagen at £81.4m. This would represent an uplift of £4.8m (6% or 1.05 pence per share over the carrying value of £76.6m in the Net Asset Value (NAV) of HGT at 31 August 2022).
Based on the 31 August 2022 reported NAV, the pro-forma NAV of the Trust is expected to be £2.04bn (or 446 pence per share). HGT’s available liquid resources, which includes the undrawn bank facility of £115m for future deployment, are estimated to be £357m (17% of the 31 August 2022 pro-forma NAV of £2.05bn). HGT’s outstanding commitments to invest in Hg transactions are approximately £1.1bn (54% of the pro-forma 31 August 2022 NAV).