Hg invests in F24

Hg, the Manager of HgCapital Trust plc ("HGT"), today announces an investment in F24 AG, a pan-European sector leader for emergency notification, crisis & incident management and critical communications, headquartered in Munich, Germany. The terms of the transaction are not disclosed.

HgCapital Trust plc will invest approximately £11 million in F24, with other institutional clients of Hg investing alongside HGT through the Hg Mercury 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 HGT's share of Hg's overall investment in F24.

HGT's liquid resources available for future deployment are estimated to be £123 million (13% of the 31 March pro-forma NAV of £963 million). The investment will reduce HGT's outstanding commitments to invest in Hg transactions to approximately £916 million.

Hg invests in F24

to accelerate growth of a pan-European leader for emergency notification, crisis & incident management and critical communications

-       Hg will become the main shareholder in F24 after acquiring stake from current majority owner, Armira.

-       Executive board, Dr. Jörg Rahmer, Christian Götz and Jochen Schütte, to remain significantly invested.

-       Transaction marks the end of a successful first phase in F24's buy-and-build strategy, including three acquisitions and integrations.

-       Together with Hg, F24 now commences its second phase of both organic and buy-and-build strategy, to accelerate further growth.

Munich and London, 07. July 2020 - Hg, Europe's leading software investor, today announces that it has entered into an agreement to invest in F24, a pan-European sector leader for emergency notification, crisis & incident management and critical communications, headquartered in Munich, Germany. Hg will invest in a stake currently owned by Armira and co-founder Ralf Meister, and will become the majority shareholder in the business. The Executive Board, Dr. Jörg Rahmer (spokesperson), Christian Götz (co-founder and Executive Board member) and Jochen Schütte (Executive Board member) will remain significantly invested in the business, alongside Hg.

F24 partnered with Armira in 2017 and has since then more than doubled its sales by executing a successful growth strategy including three acquisitions and integrations. This transaction marks the end of the first phase of F24's buy-and-build strategy and a trusted cooperation between the two organisations. Following the transaction, the co-founder and Chairman of the Supervisory Board, Ralf Meister, will also be leaving the company.

With F24, Hg continues its focus on businesses providing critical SaaS solutions across Europe. Hg's investment in F24 will be made from the Mercury 2 Fund.

Nick Jordan, Partner at Hg, states: "The effectiveness and speed with which businesses respond to crises can make or break their future success. Quality solutions that can add peace of mind, with a proven track-record, are highly valued by their customers. We recognise F24 as a true champion in this sector, with a global presence and serving clients across multiple industry verticals. We look forward to continuing their success and accelerating international growth."

Hg's investment marks the starting point of the second phase of F24's buy-and-build strategy to accelerate further growth.

Dr. Jörg Rahmer, Member of the Executive Board at F24, states: "This new partnership represents a crucial milestone for F24 in accelerating our growth and is evidence for the achievements of our business and team. We're very excited to welcome Hg, given the depth of experience they have in our sector and their knowledge base, which we'll be able to use for the benefit of the business and our customers."

Christian Götz, co-founder and Executive Board member at F24, responsible for Sales, Marketing & PR, HR and Customer Service, adds: "F24 can look back on a history of more than 20 years. Technological progress has shaped us just as much as the constant desire to offer the best solutions for our customers. Together with Hg, we will further accelerate our growth trajectory and be even closer to our customers worldwide, enabling us to cover their constantly growing requirements." 

F24 has an international customer base of more than 2,500 clients in over 100 countries served by more than 170 employees at 12 locations.

Benedikt Joeris, Director at Hg concludes: "F24 has best-in-class and well-invested SaaS solutions, managed by an impressive management team who have been growing the business since inception. We share their passion for technology and innovation and we look forward to seeing what we can achieve together."

The terms of the transaction are not disclosed. Hg was advised on the investment by Latham & Watkins, Deloitte, E&Y, McKinsey, PWC, Codex and GCA Altium. The former shareholders were advised by Raymond James as exclusive M&A advisor as well as Gleiss Lutz and Taxess.

For further details:

Hg

Laura Dixon                                                                                                                       +44 (0)20 7089 7888

Brunswick

Samantha Chiene                                                                                                             +44 (0)207 404 5959

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 and F24's websites are not incorporated into, and do not form part of, this announcement.