Hg announces investment in LucaNet

11th April 2022 | Hg Capital Trust PLC

Hg, the Manager of HgCapital Trust plc (“HGT”), today announces an investment in LucaNet AG (“LucaNet”), a leading German-headquartered financial consolidation and planning software business.

The terms of the transaction are not disclosed. The investment is subject to regulatory approval and customary closing conditions.

HgCapital Trust plc will invest approximately £15.3 million in LucaNet, with other institutional clients of Hg investing alongside HGT through the Hg Genesis Funds.

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

Note that these figures only relate to HGTs share of Hg’s overall investment in LucaNet.

HGT’s liquid resources available for future deployment (including all announced transactions, equity raised via tap issuance, undrawn bank facility and the full year dividend payable in May) are estimated to be £315 million (16% of the pro-forma 28 February 2022 NAV of £2.0 billion).

The investment will reduce HGT’s outstanding commitments to invest in Hg transactions to approximately £776 million (39% of the pro-forma 28 February 2022 NAV).

HGT will be announcing its Q1 results to 31 March on 9 May 2022.

LucaNet AG partners with Hg to build a global leader in Corporate Performance Management

Berlin, Germany. 11, April 2022. LucaNet AG (“LucaNet”), a leading German headquartered financial consolidation and planning software business, today announces that it has agreed a strategic investment from Hg, a leading global software and services investor. This marks a key milestone in the company’s growth and ambition to become a global leader in Corporate Performance Management software.

Hg will invest a majority stake in the business alongside the current majority shareholders – Rolf-Jürgen Moll, Oliver Schmitz, and Dominik Duchon – who will maintain a substantial minority share and are eager to support the company in its next phase of growth. Mr. Duchon will go forward to serve as the CEO.

Founded in 1999, LucaNet began with a vision to create a one-stop-shop software solution, bringing together financial control, planning and consolidation. Since then, the company has evolved into a leader in its core segment – the Office of the CFO for mid-sized companies – globally. With a loyal customer base of more than 3,500 organizations in over 50 countries, offices in China, Singapore and the Americas as well as a strong European base, LucaNet employs around 500 people worldwide.

Hg’s 20-year experience in the tax, accounting and enterprise resource planning (ERP) software industries will support LucaNet in strengthening business practices and accelerating a shift to a best-in-class SaaS product and subscription-based revenue. The new partnership is also expected to see continued focus on customer success, product leadership, international sales acceleration, and M&A efforts to augment existing capabilities and expand to new product categories.

Rolf-Jürgen Moll, founder of LucaNet and former CTO for more than 20 years, said: “Since day one we wanted to provide the best software in the world, making life easier for financial professionals everywhere. Hg’s investment is a breakthrough moment for LucaNet and is a partnership that will supercharge this mission. I am so proud of our talented colleagues who got us to such a strong position as a financial consolidation leader. I am certain that the journey has just begun.”

Oliver Schmitz, co-founder of LucaNet, added: “Hg is a well-regarded partner for many software leaders in Germany and has over 20 years proven experience in scaling and transforming B2B software providers. This partnership is a fantastic opportunity for LucaNet and our customers across the world who can look forward to seeing even more comprehensive and intelligent solutions to help face the challenges in their CFO departments.”

Dominik Duchon, future CEO of LucaNet, commented: “LucaNet stands at the center of an ecosystem of thousands of businesses and is relied upon daily by financial departments and the office of the CFO. Our commitment to our customers and to providing the best solutions is core to our success and this new investment will steepen this trajectory significantly.”

Benedikt Joeris from Hg said: “LucaNet is a very high-quality business, with over 20 years of stellar growth behind it. We are thrilled to have the opportunity to partner and work alongside them. Our experience in the sector and with the product means we can see multiple opportunities for further transformational growth.”

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