REG - HgCapital Trust PLC - Hg announces a partial sale of Intelerad

HgCapital TrustAnnouncement

14/07/2022 13:00

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RNS Number : 4858S  HgCapital Trust PLC  14 July 2022

Hg, the Manager of HgCapital Trust plc ("HGT"), today announces that it has
agreed a partial sale of Intelerad, a leading global provider of enterprise
medical imaging solutions, to TA Associates, a leading global growth private
equity firm. Hg, a leading software and services investor, will retain a
significant position in the business.

 

The terms of the transaction have not been disclosed. The transaction is
expected to close in the third quarter of 2022 pending customary regulatory
approval.

 

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

 

This transaction values HGT's investment in Intelerad at approximately £87.1
million. This would represent an uplift of £10.8 million (14% or 2.4 pence
per share) over the carrying value of £76.3 million in the Net Asset Value
("NAV") of HGT at 31 March 2022.

 

Note that these figures only relate to HgCapital Trust's share of Hg's overall
investment in Intelerad.

 

Based on the 31 March 2022 reported NAV, the pro-forma NAV of the Trust is
expected to be £2.1 billion (or 458.3 pence per share).  HGT's available
liquid resources, which includes the undrawn bank facility of £250 million
for future deployment (including all announced transactions) is estimated to
be £482 million (23% of the 31 March 2022 NAV of £2.1 billion).

 

HGT will be releasing the June 2022 interim results on the 12(th) September
2022.

 

Intelerad Announces Significant Investment from TA to Accelerate Growth

TA joins Hg and ST6 in supporting Intelerad to advance clinical efficiency and
patient care through innovative medical imaging technology.

 

RALEIGH, NC and MONTREAL, CANADA, July 14, 2022 - Intelerad, a leading global
provider of enterprise medical imaging solutions, today announced that TA
Associates ("TA"), a leading global growth private equity firm, has signed a
definitive agreement to make a growth investment in the company. TA joins
Intelerad's majority investor, Hg, a leading software and services investor,
and ST6, a highly experienced team of software operating executives and
minority investor. The transaction is expected to close in the third quarter
of 2022 pending customary regulatory approval.

 

"We're excited to welcome TA as a partner on our continued journey to improve
healthcare through innovative technology," said Mike Lipps, CEO of Intelerad.
"With their deep industry knowledge and experience scaling healthcare
technology companies, the addition of TA and continued support from Hg will
help Intelerad to significantly advance our growth strategy and value to
customers."

 

Founded in 1999, Intelerad provides medical imaging software and enterprise
workflow solutions to healthcare providers worldwide. Headquartered in
Raleigh, NC and Montreal, Canada, the company serves nearly 2,000 customers
around the world, including radiology groups, outpatient imaging centers,
hospitals and healthcare systems, managing over 50 billion medical images and
empowering more than 300,000 clinicians, who collectively read over 140
million exams on Intelerad's platform each year.

 

"We have followed Intelerad for several years and continue to be impressed by
its differentiated solutions, strong growth and leadership position," said
Mark Carter, a Managing Director at TA. "Building on its momentum in the
sector, we believe Intelerad is well positioned to further strengthen and
expand its suite of solutions. We are supportive of Intelerad's vision and
excited to join the team as it enters the next phase of its growth journey,"
added Ethan Liebermann, a Managing Director at TA.

 

Hector Guinness and JB Brian, Partners at Hg, said, "Intelerad has built a
platform that is making a difference in patient care by enabling significant
efficiencies and speed-to-results for healthcare organizations. We're proud to
have supported the Intelerad team, who have achieved significant progress in
such a short period, doubling the size of the business in two years."

 

Globally, demand for scalable imaging and workflow solutions continues to
increase as imaging sites consolidate and the volume of procedures grows,
placing greater pressure on productivity. Intelerad's growth strategy is to
provide customers with one of the most scalable imaging platforms in the
world, and as a result, Intelerad customers are already benefiting from an
expanded suite of solutions, best-in-class flexibility, and increased support
which will enable them to drive clinical efficiency and focus on providing
enhanced patient care.

 

"The COVID-19 pandemic has intensified the challenges facing this industry and
accelerated the demand to improve patient care," said Mark Friedman, Intelerad
Executive Chairman and Managing Director at ST6. "Intelerad has recognized
this need and is actively working to make its customers more productive, more
agile, and more responsive. We look forward to partnering with TA to promote
organic development and pursue strategic growth opportunities. The new
investment from TA will help Intelerad further deliver the critical value that
our customers need right now."

 

Kirkland & Ellis is providing legal counsel to TA. Skadden, Arps, Slate,
Meagher & Flom LLP, DLA and McCarthy Tétrault LLP are providing legal
counsel to Hg and Intelerad.

 

For further details:

 

Hg

Tom Eckersley
 
+44 (0)208 148 5401

 

HGT

Laura
Dixon
+44 (0)20 8396 0930

 

Brunswick

Azadeh
Varzi
+44 (0)207 404 5959

Hg@brunswickgroup.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.

 

The contents of the Hg, HgCapital Trust, TA Associates and Intelerad websites
are not incorporated into, and do not form part of, this announcement.

 

 

 

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