Canada Pension Plan Investment Board’s Acquisition of Minority Stake in Visma Group

Kirkland & Ellis represented the Canada Pension Plan Investment Board on the deal

Hg, the Manager of HgCapital Trust plc executed the part-realisation of Visma from Hg7, to the Canada Pension Plan Investment Board (CPPIB).

The terms of the transaction were not disclosed.

The Company, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all Hg’s investments.

The investment by CPPIB realises a minority part of Hg’s investment in Visma, held by the Hg7 Fund.

Hg has been supporting Visma’s growth strategy for over 12 years, collaborating on over 140 bolt-on acquisitions whilst also helping transition Visma to become Europe’s largest SaaS business. During this time Visma has delivered consistent revenue growth at around 15% per year, evolving from a €450m business in 2006 into one valued at well over €6 billion today.

Following completion of the transaction, Hg will remain the lead investor in Visma, and will continue to support the business’ growth as the majority shareholder through its managed funds including the Hg7 Fund and the Hg Saturn 1 Fund.

This transaction values the Company’s overall investment in Visma prior to completion at approximately £153.6 million. This would represent an uplift of £14.3 million (10%) over the carrying value of Visma of £139.3 million in the Net Asset Value (“NAV”) of the Company at 30 November 2018. The Company will realise estimated cash proceeds of approximately £21.7 million on completion of this transaction, meaning the Company’s residual holding in Visma would be valued at £131.9 million. (Note that these figures only relate to HgCapital Trust’s investment in Visma.)

Based on the 30 November 2018 NAV, the pro-forma NAV of HgCapital Trust would be £777.2 million (or 2,082.3 pence per share). The Company’s liquid resources available for future deployment (after adjusting for all announced transactions) are estimated to be £156 million (20% of the pro-forma 30 November 2018 NAV). In addition, the Company has access to a £80 million standby facility, which is currently undrawn.

The Kirkland team was led by London-based transactional partner David Higgins (Picture) and associates Annette Baillie and Amelia Rolfe.

Involved fees earner: Annette Baillie – Kirkland & Ellis; David Higgins – Kirkland & Ellis; Amelia Rolfe – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: Canada Pension Plan Investment Board;

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