Hg, the manager of HgCapital Trust, announced that they are planning to invest in Litera Microsystems (Litera), a leading provider of end-to-end document lifecycle solutions to the legal and life sciences industries worldwide. The transaction will be Hg’s sixth legal and compliance business in the current portfolio.
HgCapital will invest approximately £32.1m in Litera, with other institutional clients of Hg investing alongside the company through the Hg Genesis 8 Fund.
Litera has developed a leading suite of legal document productivity applications, delivered as an end-to-end platform to over 1,300 organisations across the globe.
Based on the 31 March 2019 NAV, HgCapital’s liquid resources available for future deployment, including all announced transactions and the dividend paid on 30 April 2019, are estimated to be £88m (11% of the pro-forma 31 March 2019 NAV of £790.7m).
In addition, HgCapital has access to an £80m standby facility, which is currently undrawn. The investment will reduce the trust’s outstanding commitments to invest in HgCapital transactions over the next two to three years to approximately £354m.
HgCapital’s team recognises Litera’s strong recurring revenues and that Litera displays the same growth characteristics as many others in the HgCapital portfolio.
Avaneesh Marwaha, Litera’s CEO, said: “We look forward to partnering with Hg and developing new products and capabilities to continue to meet the evolving needs of our customers.”