Press Release - Addison
HG Capital Trust PLC
03 June 2005
The following is the text from a press release issued by HgCapital, which
manages the investment portfolio of HgCapital Trust plc alongside those of other
clients. The trust, which participates in all of HgCapital's investments, will
invest €6.9 million in Addison Software and Service GmbH.
HgCapital agrees to acquire Addison Software in €78 million management buy-out
HgCapital's fifth mid-market acquisition in Germany since 2003
London, 03 June 2005. HgCapital, a leading sector-focused European mid-market
private equity investor, today signed an agreement to lead the management
buy-out of Addison Software and Service GmbH. The acquisition, which values the
company at €78 million, is expected to close later this month, subject to
regulatory approval. The transaction reinforces HgCapital's position as one of
the most active private equity investors in mid-range accounting software in
Europe in the past two years.
Addison is a leading, privately-owned German application software company that
provides business-critical solutions to two related markets - tax accountants
and SMEs. It develops, licenses and manages standard and sector specific
software for bookkeeping, accounts production, tax, cost accounting, payroll
administration and 'controlling'. The company, which was founded in 1921 as
part of Taylorix, has 13 sales centres across Germany and employs 280 staff.
Karsten Hartmann, a director in HgCapital's Frankfurt office, said: 'The
acquisition of Addison arose as a result of a direct approach by HgCapital and
underlines the importance of our sector-focused strategy in identifying
investment targets. It is HgCapital's third technology buy-out in Europe within
the last 13 months and its fifth acquisition in the German market since 2003.
We have been active in Germany since 1999 and the German mid-market remains
central to HgCapital's future investment strategy.'
Richard Donner, a director in the technology team at HgCapital, commented: '
Addison has excellent management, high-quality products and services and an
interesting competitive position with very promising prospects for growth. The
experience we have acquired in the organic and acquisitive expansion of IRIS
Software, a comparable company operating primarily in the UK, places HgCapital
in an excellent position to drive growth and develop further Addison's
competitive positioning.'
Addison CEO, Dr Michael Rochner, said: 'In HgCapital the management of Addison
has found the ideal partner to take the company to a new phase of ambitious
growth, providing us with the capital necessary to improve further the marketing
and development of products and services. We welcome the knowledge that
HgCapital will be able to apply to Addison, which will significantly increase
our competitive advantage.'
Debt facilities were arranged and fully underwritten by NIB Capital Bank N.V.
PricewaterhouseCoopers acted as lead corporate finance advisor and Linklaters
Oppenhoff & Radler as legal advisor to HgCapital on this transaction.
- ends -
For further information contact:
HgCapital
Richard Donner +44 (0)20 7089 7913 richard.donner@hgcapital.net
Karsten Hartmann +49 (0)69 2470 3717 karsten.hartmann@hgcapital.net
Addison Software and Service GmbH
Dr Michael Rochner +49 (0)71 41 914 62 mroechner@addison.de
Maitland
Neil Bennett +44 (0)20 7379 5151 nbennett@maitland.co.uk
Peter Ogden pogden@maitland.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange ND
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