REG - HgCapital Trust PLC - Hg announces a further investment in P&I

HgCapital TrustAnnouncement

31/03/2025 07:15

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RNS Number : 7995C  HgCapital Trust PLC  31 March 2025

 

Hg, the Manager of HgCapital Trust plc ("HgT"), today announces a further
investment in Personal & Informatik AG ("P&I"), after acquiring a
stake from Permira.

 

The terms of the transaction are not disclosed.

 

HgT will invest a further £53 million in P&I with other institutional
clients of Hg investing alongside HgT.

 

HgT, whose shares are listed on the London Stock Exchange, gives private and
institutional investors the opportunity to participate in all Hg's
investments.

Note that these figures only relate to HgT's share of Hg's overall investment
in P&I.

HgT's pro-forma liquid resources available for future deployment (including
all announced transactions, the undrawn bank facility and the proposed full
year dividend payable in May 2025) are estimated to be £329 million (13% of
the pro-forma 28 February 2025 NAV of £2.5 billion).

The investment will reduce HgT's outstanding commitments to invest in Hg
transactions to approximately £1.4 billion (55% of the pro-forma 28 February
2025 NAV). HgT will announce its Q1 results in May 2025.

 

HR software leader P&I secures further backing from Hg
in €5.5 billion transaction

 

·    Hg will increase its stake in P&I, acquiring a minority
shareholding from Permira, which will fully exit the business after investing
in 2016.

 

·    P&I continues to perform well, with revenue growing over 20% and
exceeding €300 million.

 

·    As a result of the transaction, Hg will continue to be the majority
shareholder in P&I, more than 10 years since first investing, in 2013.

 

·    The transaction values P&I at €5.5 billion, representing
significant growth from Hg's initial investment at around €400 million in
2013.

 

Wiesbaden, Germany, 31 March 2025 - Personal & Informatik AG ("P&I"),
a leading provider of modern, cloud-based HR solutions based in Germany, has
secured a new valuation of €5.5 billion in a recapitalisation of the
business. The transaction will see Hg, a leading investor in European and
transatlantic software and services businesses, increase its shareholding in
P&I after acquiring a minority stake from Permira, the global investment
firm, which will fully exit the business.

 

Founded in 1968 and based in Germany, P&I has been at the forefront of HR
innovation for over 50 years, providing cutting-edge technology to streamline
and optimise HR processes. The company has grown substantially over the last
20 years and serves more than 15,000 customers across Europe, ranging from
SMEs and large corporations across all industries to public sector customers
of all sizes.

 

A major driver of growth for P&I is its fully integrated HR Cloud Platform
P&I LogaHR, which automates HR processes from payroll, time and workforce
management to recruiting and talent management, revolutionising the way
businesses approach human resources.

 

Hg first invested in the company in 2013 at an enterprise value of around
€400 million. Funds advised by Permira became P&I's majority shareholder
in 2016, before Hg reacquired a majority shareholding in 2019 in a transaction
valuing P&I at €2 billion.

 

Vasilios Triadis, CEO of P&I, said:

"Today is also a special day for all P&I employees, because we've been on
an extraordinary journey. It began over 20 years ago with our first
client-server architecture, followed by the complete digitalisation of our HR
platform through P&I LogaAll-in and our own HR data centre, and now
reaches a new peak through the HR intelligence of P&I LogaHR. All these
steps have made P&I one of the most significant and renowned companies in
the European HR and cloud industry. This is an industry that has always been
characterised by change and will continue to be in the future, whether it's
how an HR product is defined, developed, or sold. We are well-positioned to
meet the challenges of digital transformation and technological change and to
successfully help shape the European HR world."

 

P&I has grown substantially during the last few decades. Revenue now
exceeds €300 million, having growth a further 20% in the last year. The
company serves more than 15,000 customers across Europe, ranging from SMEs and
large corporations to public sector entities, that rely on P&I's HR
platform. It also manages over six million HR cases throughout the DACH region
and beyond, revolutionising the way businesses approach human resource
management.

 

A major driver of growth for P&I has been its HR Cloud Platform, LogaHR,
which automates HR processes, from payroll and time management to recruiting
and talent management, freeing HR teams to focus on strategic initiatives that
drive organisational success.

 

Justin Von Simson, Managing Partner at Hg, said: "We want to be a long-term
partner to the companies we work with and continue to back the winners over
many years or decades. P&I is a leader in HR software with an outstanding
product and a great track record of consistent growth, high recurring revenue
and exceptional retention rates, that aligns perfectly with our investment
approach. Our partnership with Vasilios, and Permira since 2016, leaves the
company perfectly positioned to benefit from the continued transition to the
cloud among its customers in the German Mittelstand and public sector and this
new investment reflects our confidence in P&I's growth trajectory."

 

Stefan Dziarski, Partner and Co-Head of Permira Growth Opportunities, said:
"We have had the privilege of partnering with P&I over the past nine years
and have worked closely with Vasilios Triadis and Hg on the transition of the
business from a traditional license and maintenance software company towards a
leader in modern cloud-based HR solutions. Together, we drove a number of key
initiatives, including significant investment into the company's new cloud
platform, LogaHR, opening a new R&D centre in Greece, as well as enhancing
P&I's go-to-market strategy, team and operations. We believe P&I is
well-positioned to continue its growth journey under Vasilios' leadership."

 

-Ends-

 

For further information, please contact:

HgCapital Trust
Laura Dixon and George Crowe

+44 (0)20 8396 0930

 

Cadarn
Lucy Clark
lucy@cadarncapital.com (mailto:lucy@cadarncapital.com)

+44 (0)7984 184 461

 

David Harris
david@cadarncapital.com (mailto:david@cadarncapital.com)

+44 (0)7368 883 211

 

Hg
Tom Eckersley

tom.eckersley@hgcapital.com (mailto:tom.eckersley@hgcapital.com)

 

Sam Ferris

sam.ferris@hgcapital.com (mailto:sam.ferris@hgcapital.com)

 

About HgCapital Trust plc

HgCapital Trust plc, whose shares are listed on the London Stock Exchange
(ticker: HGT.L), gives investors exposure through a liquid vehicle to a
portfolio of high-growth private companies in the software and services
sector. The selection of new investments and creation of value in these
businesses are managed by Hg, an experienced and well-resourced private equity
firm with a long-term track record of delivering superior risk-adjusted
returns for its investors. For further details, please
see www.hgcapitaltrust.com (https://www.hgcapitaltrust.com/) .

 

The contents of the Hg, HgCapital Trust, P&I and Permira websites are not
incorporated into, and do not form part of, this announcement.

 

 

 

 

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