MÜNSTER: Hg, Europe’s leading software investor, has agreed the sale of Eucon Group to VHV Group, a leading German insurance group, a news release said.
The terms of the transaction were not disclosed. The transaction is subject to customary anti-trust approvals and closing is expected later this year.
Eucon is a leading provider of best-in-class information and data-based systems for efficient product management in the automotive aftermarket. Customers include car manufacturers and suppliers, as well as a variety of workshop chains.
For insurers, Eucon digitalises claims management and is one of the sector leaders for digital platform solutions for data and document processing. In addition, Eucon offers digital solutions for the real estate industry for efficient and transparent invoice management.
Sven Krüger, CEO of the Eucon Group, said: “Together with Hg, we have written a great success story over the last five years. We would like to thank Benedikt Joeris and his team for their partnership and trusting cooperation. We have been successfully cooperating with the VHV Group for some time now and therefore could not have hoped for a better new investor.
“By providing platform solutions, we help our customers tap the digital potential of their industry and ensure sustainable access to the key technologies they require. With VHV as a robust, powerful and innovative partner, we can achieve this goal even more effectively and ensure that this open platform strategy is available to our customers for the long term.”
Benedikt Joeris, Director at Hg, says: “It has been a real privilege to work with Sven, the founders and entire team at Eucon. Today we part ways after five very productive years of working together. Eucon’s business sits at the intersection of two growth drivers in which Hg has built substantial experience: the value of big data in the automotive sector and the increasing digitalisation of the insurance and real estate industry – and together we have built a great business in these areas.
“We are delighted that the team will be able to continue this journey with VHV, a true leader in insurance across Germany. We’re also pleased to see the strength of our networks and our track record continue to drive value in small and medium enterprises across Germany.”
The founders of Eucon Group, Maurice and Marcel Oosenbrugh, commented: “Eucon can look back on a very successful few years of development alongside Hg. Our collaboration has been very valuable to the business and we enjoyed working closely together. We look forward to continuing Eucon’s growth with VHV.”
This transaction values HGT’s investment in Eucon at approximately £11.5 million. This would represent an uplift of £3.9 million (51% or 1 pence per share) over the carrying value of £7.6 million in the Net Asset Value (NAV) of HGT at 31 August 2020. These figures only relate to HgCapital Trust’s share of Hg’s overall investment in Eucon Group.
Based on the 31 August 2020 reported NAV, the pro-forma NAV of the Trust is expected to be £1.16 billion (or 285 pence per share). HGT’s liquid resources available for future deployment (including all announced transactions and the interim dividend paid in October 2020) are estimated to be £123 million (11% of the pro-forma 31 August 2020 NAV). In addition, HGT has access to an £200 million standby facility, which is currently undrawn.
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.
Leave a Reply