insightsoftware attracts c.$1bn investment from Hg
Hg, the Manager of HgCapital Trust plc ("HGT"), today announces an investment in insightsoftware, a global provider of enterprise software solutions for the 'Office of the CFO'.
The terms of the transaction have not been disclosed and completion is subject to closing conditions.
HgCapital Trust plc will invest approximately £40 million in insightsoftware, with other institutional clients of Hg investing alongside HGT through the Hg Saturn 2 Fund.
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 HGTs share of Hg's overall investment in insightsoftware.
HGT's liquid resources available for future deployment (including all announced transactions, and equity raised via tap issuance) are estimated to be £179 million (12% of the 31 March 2021 NAV of £1.5 billion).
The investment will reduce HGT's outstanding commitments to invest in Hg transactions to approximately £442 million (30% of the 31 March 2021 NAV).
insightsoftware attracts c.$1bn strategic investment from Hg
to continue to scale as a platform and leader in financial reporting and EPM software
insightsoftware will continue to be supported by existing shareholders TA Associates, Genstar and ST6 in a transaction valuing the business at an Enterprise Value of around $4 billion
Raleigh, NC, USA and London, United Kingdom. 13 July 2021 - insightsoftware, a global provider of enterprise software solutions for the 'Office of the CFO', today announced that it has secured an investment from Hg, a leading global software and services investor.
The Hg Saturn 2 Fund will make a c.$1 billion equity investment in insightsoftware to become a significant minority shareholder alongside TA Associates ("TA") in a transaction valuing the business at an Enterprise Value of around $4 billion. TA and Hg will share joint control. As part of the transaction, insightsoftware will also continue to be supported by minority shareholders Genstar and ST6.
insightsoftware is a leading provider of financial reporting and enterprise performance management (EPM) software, enabling the 'Office of the CFO' to connect to and make sense of enterprise data in real time so they can proactively drive greater financial intelligence.
insightsoftware was formed in 2018 by TA and ST6. Since then, the business has grown rapidly, building a suite of software products across reporting, budgeting & planning, close & consolidation, tax, disclosure and equity management. Today, more than 28,000 customers worldwide rely on these products to provide them with increased productivity, visibility, accuracy and compliance across their organizations. Headquartered in Raleigh, NC, with offices around the world, insightsoftware has more than 1,000 employees serving over 600,000 global users.
Mark Friedman, Executive Chairman of insightsoftware and Managing Director of ST6, said: "In insightsoftware we have brought together some of the best investors and most experienced operators in enterprise software. This alignment and focus, after multiple years of working together to build businesses, has resulted in value creation of significant velocity after just a few years, starting with a business with $35 million in revenues to one with revenues almost 10 times that today. There is still more to do to reach the full potential of insightsoftware. We're just getting started and we're thrilled to be partnering with Hg again on this journey."
Nic Humphries, Senior Partner and Head of the Hg Saturn team, and Thorsten Toepfer, Partner at Hg, said: "insightsoftware is a great example of a best-in-class team of software experts coming together to create a cloud platform that drives better business outcomes for thousands of customers around the world. The business sits right at the heart of a cluster - tax and accounting software - that we have been investing in for almost two decades and we look forward to bringing this experience to the rest of team."
Jim Triandiflou, CEO of insightsoftware, said: "insightsoftware has been a rocket ship of growth since TA and ST6 created the business just over three years ago. Hg's expertise with ERP providers and presence in Europe will add additional fuel to our growth. Together we will be able to give companies around the world the financial confidence to pursue their missions."
Hythem El-Nazer, Managing Director at TA, said: "We are very pleased to welcome Hg as an investor in insightsoftware. Since TA's founding of the company in 2018, insightsoftware has realized significant and sustained organic and acquisitive growth, expanding its geographic and product footprint and becoming a recognized leader in financial reporting software. We are excited to continue our partnership with insightsoftware and look forward to working closely with management and our fellow investors to support the company's continued growth."
Eli Weiss, Managing Director of Genstar, said, "We saw an opportunity to partner with TA and ST6 to help accelerate the company's global leadership both organically and via M&A. Since our investment in 2019, insightsoftware has completed 12 acquisitions and we believe the company is still in the early innings of change."
The terms of the transaction have not been disclosed and completion is subject to customary closing conditions.
For further details:
Hg
Laura Dixon +44 (0)20 8396 0930
Brunswick
Samantha Chiene +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, Genstar, ST6 and insightsoftware websites are not incorporated into, and do not form part of, this announcement.
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