HgCapital sells Zitcom Group via trade sale

According to a statement, the GP reaped a 3.3x multiple on the initial investment and a 145% gross IRR after 18 months of ownership.

The deal represents the second exit for the GP's lower-mid-cap €380m Mercury Fund, following the recent sale of Relay Software in August 2016, which generated a 2.1x multiple and 39% IRR. The vehicle has so far reaped an aggregate 2.8x multiple and a 70% gross IRR.

Mercury Fund made its first investment in 2012 and, following the current sale, it will have returned 40% of invested capital back to its LPs, the firm said in a statement.

Previous funding
The GP acquired a stake in the business in December 2015. The deal was the seventh investment for the Mercury Fund.

Company
Founded in 2000 and headquartered in Skanderborg, Zitcom provides digital cloud and hosting services in Denmark.

People
HgCapital – Nick Jordan (director).
Zitcom Group – Stefan Rosenlund (CEO).

Advisers
Vendor – Harris Williams (M&A); Linklaters (legal); Accura (legal).

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