HgCapital Trust PLC Hg announces an investment in BrightPay (1823A)
September 10 2018 - 2:10AM
UK Regulatory
TIDMHGT
RNS Number : 1823A
HgCapital Trust PLC
10 September 2018
Hg Capital Trust plc
Hg, the Manager of HgCapital Trust plc ("the Company"), today
announces an investment in BrightPay, a provider of Accounting and
HR payroll software to SMEs in Ireland and the UK.
The terms of the investment are not disclosed.
In early 2018, the Company made a GBP75 million commitment to
invest in Transition Capital ("the Fund") and is the sole investor
in the Fund. HgCapital Trust plc will invest approximately GBP15.4
million in BrightPay, representing the Fund's first investment to
date.
The Company, 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 2018 NAV, the Company's liquid resources
available for future deployment, including all announced
transactions, are estimated to be GBP139 million (18% of the 31
August 2018 NAV of GBP772.5 million). In addition, the Company has
access to an GBP80 million standby facility, which is currently
undrawn. The investment will reduce the Company's outstanding
commitments to invest in Hg transactions over the next two to three
years to approximately GBP460 million.
Hg announces an investment in BrightPay
10 September 2018: Hg today announces that it has agreed a first
investment of Transition Capital in BrightPay, a provider of
Accounting and HR payroll software to SMEs in Ireland and the
UK.
The terms of the investment are not disclosed.
Hg's structured minority investment strategy will fund the
investment in BrightPay. Transition Capital offers privately-owned
businesses an attractive alternative to a minority equity sale,
through structured equity, which gives entrepreneurs access to the
support of Hg and its network, whilst retaining control of their
business.
Based near Dublin, BrightPay provides easy-to-use and
cutting-edge software solutions to enable SMEs to manage payroll,
supported by excellent customer service. BrightPay's software is
used by over 120,000 employers across the UK and Ireland under two
brands, BrightPay and Thesaurus Software.
BrightPay's business of Accounting and HR payroll software is a
very familiar sector to Hg and represents the 10(th) investment in
businesses within this space. Payroll in Ireland is scheduled to
undergo significant change from January 2019, as Ireland rolls out
PAYE modernisation, which will require employers to report PAYE in
real time to the Irish Revenue Commissioners ("Revenue"). BrightPay
has invested significantly ahead of this change to prepare to
support Irish SMEs through this transition.
Peter Miholich, Director at Hg, said: "We have been really
impressed by the dedication of the BrightPay team to delivering
great software and outstanding service to their customers. We look
forward to partnering with Paul, Ross and the team to take
BrightPay to the next stage of its development, adding our
experience and strong track-record of working with successful
businesses in Accounting and Payroll software."
Paul Byrne, Founder and Managing Director at BrightPay, said:
"Hg is a hugely credible investor in this sector and it's great to
secure an investment from a firm who both knows our market and has
the experience to help us develop the business."
For further details:
Hg
Laura Dixon +44 (0)20 7089 7888
Maitland
Vikki Kosmalska and Seda Ambartsumian +44 (0)20 7379 5151
About BrightPay
Established in 1991, BrightPay has been trading for almost 30
years offering payroll, HR and accounting software products to
Irish and UK businesses and accountants. We provide powerful
software that is both cost effective and easy to use. Our suite of
payroll and HR products save businesses a considerable amount of
time by utilising automation and innovative technology. Our
products are used by over 120,000 (and counting) businesses across
the UK and Ireland. We are a passionate team who strive on the
excitement and challenge of continuous growth, improvement and
development. Our plans for the future are big!
https://www.brightpay.co.uk/
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
technology and tech-enabled 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 HgCapital Trust, Hg and Brightpay's websites
and any website accessible from hyperlinks on such websites (or any
other website) are not incorporated into, and do not form part of,
this announcement.
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END
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