REG - HgCapital Trust PLC - Ideagen and ProcessMAP to Combine

HgCapital TrustAnnouncement

05/10/2022 09:34

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RNS Number : 7766B  HgCapital Trust PLC  05 October 2022

 

Hg, the Manager of HgCapital Trust plc ("HGT"), today announces a merger
between Ideagen, a trusted name in software solutions for regulated
industries, and ProcessMAP, a leading Environmental, Health and Safety ("EHS")
software platform provider.

 

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.

 

Today's announcement will see ProcessMAP become "ProcessMAP - an Ideagen
solution" with customers benefiting 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.

 

This transaction values HGT's existing investments in ProcessMAP and Ideagen
at £81.4 million. This would represent an uplift of £4.8 million (6% or 1.05
pence per share over the carrying value of £76.6 million in the Net Asset
Value ("NAV") of HGT at 31 August 2022).

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

 

Based on the 31 August 2022 reported NAV, the pro-forma NAV of the Trust is
expected to be £2.04 billion (or 446 pence per share). HGT's available liquid
resources, which includes the undrawn bank facility of £115 million for
future deployment, are estimated to be £357 million (17% of the 31 August
2022 pro-forma NAV of £2.05 billion).

 

HGT's outstanding commitments to invest in Hg transactions are approximately
£1.1 billion (54% of the pro-forma 31 August 2022 NAV).

 

 

Ideagen and ProcessMAP to combine their strengths to create a

world-leading health and safety software solution

 

Ideagen, a trusted name in software solutions for regulated industries, has
today announced it has entered into a definitive agreement to acquire
ProcessMAP.

Speaking about the news Ideagen CEO, Ben Dorks, said: "Both organisations
share a common purpose, and this provides a compelling opportunity to do more
to support the safe hands and quiet voices that protect the world.

"Adding ProcessMAP into Ideagen's existing suite of solutions builds on our
combined strengths and enhances the ways we support organisations to manage
their quality, health, safety and environmental needs."

Today's announcement will see ProcessMAP become "ProcessMAP - an Ideagen
solution" with customers benefiting 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.

Dave Rath, CEO of ProcessMAP, said: "The increased importance of strong
corporate ESG strategies has prompted our customers to think and act
responsibly to ensure safe and ethical practices for employees and
customers.

"By combining with Ideagen, we will create a category leading EHSQ software
business, sharing talent, technology, innovation, and geographical reach to
expand globally, leveraging each other's infrastructure and customer base."

ProcessMAP's existing customers are in good company, Ideagen helps the world's
top seven aerospace and defence companies, 15 of the top 20 pharmaceutical
companies, nine of the top 10 accounting firms, over 250 hospitals in the UK
and US and over 300 aviation organisations globally, to protect their
businesses.

Ben added: "We have, within our global footprint, a diverse mix of large
corporations, small, and mid-market customers, whose need for software
solutions increase as they grow in size, geographic spread, or place
increasing importance on ESG reporting.

"This combination provides us with an exciting opportunity to support existing
and new customers with a best-in-class health and safety solution that is
appropriate to their needs and flexible enough to scale as they evolve."

This will be Ideagen's second acquisition of 2022 and the fifth since the
summer of 2021, as it continues to strengthen its portfolio of software
solutions for regulated industries.

Hg, a leading software and services investor, will remain as majority investor
in the combined business.

 

Christopher Fielding, Joris Van Gool and Jean-Baptiste Brian, Partners at Hg,
commented: "This is a significant milestone for both businesses and it's
exciting to see such strategic progress so early in our work together.

 

"Both Ideagen and ProcessMAP are high quality businesses, with complementary
product suites and diversified regional cover across Europe, North America and
APAC. Together the business will be better positioned to serve its customers
and take advantage of the numerous tailwinds in regulation, compliance and
ESG. We are looking forward to further expansion in the coming months."

 

The transaction is expected to close in 2022 and is subject to customary
closing conditions.

For further details:

 

Hg

Tom Eckersley
 
+44 (0)208 148 5401

 

HgCapital Trust

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, Ideagen and ProcessMAP's websites are
not incorporated into, and do not form part of, this announcement.

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