Hg Capital said Tuesday that it had agreed to invest £35m in cloud-based logistics platforms Transporeon and also announced it had completed the refinancing of insurance broker A-Plan.
While the terms of the investment in Transporean were not disclosed, HgCapital Trust would invest approximately £35.0m in Transporeon, with other institutional clients of Hg investing alongside the company through the Hg8 Fund.
Transporeon, a cloud-based logistics platform with strong network effects, connected a global network of over 1,000 shippers and almost 90,000 carriers, enabling them to source, communicate, collaborate and transact more efficiently, whilst also helping to lower CO2 emissions by up to 10% through the reduction of empty cargo trucks.
The investment, which would be made from the Hg8 fund, recognised Transporeon's 'attractive business model characteristics, strong financial profile, highly experienced management team and leading position in leveraging the continuously growing network effect,' Hg said.
Separately, Hg also confirmed it had completed the refinancing of insurance broker A-Plan, from which it would realise estimated cash proceeds of approximately £13.7m on completion of the transaction.
A-Plan, a UK multichannel insurance broking group, offered a wide range of products focused on personal and SME commercial lines, with more than 1.5m live policies.
Following this refinancing, just under £200m of proceeds would have been returned to the Hg7 fund, representing 1.3 times the original cost of the A-Plan investment, with no sell-down of Hg's equity ownership, the company said.
Based on the 30 November 2018 net asset value, the pro-forma NAV of HgCapital Trust remained at £777.2m.
At 8:49am: (LON:HGT) HG Capital Trust PLC share price was +2.5p at 1972.5p