Hg reinvests in Allocate Software

Hg said in a statement that it exercised an option to reinvest in Allocate and acquired a "co-controlling" stake in the business.

The GP reinvested with capital drawn from Hg8, which held a final close on its £2.5bn hard-cap in February 2017. The deal brings the percentage of capital deployed by the vehicle to around 27%, according to a statement issued by the GP.

During Hg's original holding period, Allocate invested in product development and undertook a recruitment drive, increasing its headcount from 300 to 500. The company also started distributing its software on an international basis, with products currently being rolled out in France, Germany, Spain and Denmark.

The business increased its turnover from £37m in the year ending in May 2013 to £44.1m in the year ending in May 2016, according to publicly available documents. Operating profit grew to £6.7m from an operating loss of £2.3m in the same period, and Allocate generated EBITDA of £8.63m in 2016.

Previous funding
Hg acquired a 92.05% stake in Allocate for £109.6m in a take-private deal in October 2014. The GP drew capital for the transaction from its Mercury 1 Fund.

Vista then bought the company from Hg in April this year with capital drawn from Vista Equity Partners Fund VI.

Company
Established in 1991, London-headquartered Allocate is a developer of workforce management software for the healthcare sector. It has additional operations in Sweden, France, Spain, Germany and Australia.

People
Hg – Jean-Baptiste Brian, David Issott (partners).
Vista Equity Partners – Alan Cline (principal).
Allocate Software – Sati Sian (CEO).

Advisers
Vendor – Spurrier Capital Partners (corporate finance).

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• United Kingdom
• Vista Equity Partners
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