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British software firm Ideagen has agreed to a £1.09bn takeover by London-based private equity firm Hg Capital.

Nottingham-based Ideagen provides companies with business and risk management software. Some of the clients served by Ideagen include British Airways, Heineken, and the Bank of New York.

The company has described its service to clients as helping “reduce costs, improve operational efficiency, strengthen compliance and oversight and anticipate and manage every detail of risk”.

Partners at Hg Capital have said they expect the Ideagen takeover deal to be completed in July.

A statement from Hg partners Christopher Fielding, Joris Van Gool and Jean-Baptiste Brian said: “At Hg, we have spent over 20 years focused on the business-to-business software space. We have long admired how Ben [Dorks] and his highly motivated team have grown Ideagen into a leader in its sector.

“Our experience in the sector gives us strong conviction that Ideagen represents a high-quality platform, and we are committed to providing additional capital and resources that are required to further support and enhance Ideagen’s next phase of growth.”

While an initial agreement with Hg Capital giving the software company a valuation of more than £1bn has been made, other suitors are still able to make offers of their own.

The French-founded private equity firm Astorg, in particular, is expected to make an offer, though Ideagen said yesterday that no offer has been made yet.

A third possible buyer, the private equity firm Cinven, walked away from the deal last week.

Ideagen has been steadily growing sales and earnings for 12 years in a row now, including the turbulent years during the height of the pandemic, making it an attractive prospect to potential buyers.

Hg Capital has said that, should it take control of Ideagen, it would maintain its location in Nottingham.

Ideagen in May 2021 received £100m in funding to support its global growth plans.

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