British investment trust HG Capital Trust Plc (HGT.L) said on Monday that its manager Hg has increased its stake in Personal & Informatik AG or P&I, by acquiring a minority stake from Permira. The terms of the transaction are yet to be disclosed.
HgCapital Trust will invest an additional 53 million pounds in P&I, with other institutional clients of Hg investing alongside HgT.
P&I has achieved a new valuation of 5.5 billion pounds following a recapitalisation of the company, with Hg continuing as the majority shareholder, marking over 10 years since its initial investment in 2013.
P&I, a German provider of cloud-based HR solutions, has reported strong growth, with revenue increasing over 20 percent and exceeding 300 million pounds.
HG first invested in P&I at a valuation of 400 million pounds in 2013, with Permira becoming the majority shareholder in 2016. Hg reacquired a majority stake in 2019 when P&I was valued at 2 billion pounds. The latest transaction values the company at 5.5 billion pounds, reflecting significant growth over the past decade.
Commenting on the investment, Justin Von Simson, Managing Partner at HG, said, "We want to be a long-term partner to the companies we work with and continue to back the winners over many years or decades. Our partnership with Vasilios, and Permira since 2016, leaves the company perfectly positioned to benefit from the continued transition to the cloud among its customers in the German Mittelstand and public sector and this new investment reflects our confidence in P&I's growth trajectory."
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