LONDON (ShareCast) - (Sharecast News) - Hg Capital Trust has invested in cloud-based logistics platforms Transporeon Group, it announced on Tuesday, with private equity giant TPG Capital exiting its shareholding in Transporeon as part of the transaction, with the terms not disclosed.
The FTSE 250 company described Transporeon, founded in 2000 and headquartered in Ulm, Germany, as a cloud-based logistics platform with "strong" network effects, connecting a network of more than 1,000 shippers and almost 90,000 carriers, enabling them to source, communicate, collaborate and transact more efficiently.

It said it also helped to lower carbon dioxide emissions by up to 10% through the reduction of empty cargo trucks, or 'backhauls'.

Transporeon served a global blue-chip and European enterprise customer base, and "Europe's leading carrier network", with more than 100,000 users across 100 countries, who used the group's software-as-a-service solutions and platform - available in 24 languages - for freight sourcing, carrier assignment, time slot management, visibility and market intelligence.

The company employs 600 people in nine locations around the world.

Hg Capital said the investment, which would be made from the 'Hg8' fund, recognised Transporeon's business model characteristics, financial profile, experienced management team and position in leveraging the continuously growing network effect.

The transaction represented an example of Hg's focus on cloud-based software and network companies, providing software-as-a-service (SaaS) solutions to the business community, the board claimed.

"We have been tracking Transporeon for many years," said Hg's Stefan Margolis, Justin von Simson and Jean-Baptiste Brian in a joint statement.

"We believe that it is a very unique platform, with significant further organic growth potential, at the forefront of freight industry digitalisation.

"Using its cloud-based technology solutions, Transporeon helps to reduce complexity and increase efficiency, in what is still a highly inefficient, large, fragmented global logistics market."

Marc-Oliver Simon, co-founder and chief executive officer of Transporeon, added that his company was "excited" to work with Hg, tapping into its "deep experience" and track record in working with technology companies.

"[Hg will] help us achieve our vision around the digitalisation of the freight industry, whilst also delivering the best solutions for our customers and global network."

At the same time on Tuesday, Hg Capital Trust said it had completed the refinancing of A-Plan, a UK multichannel insurance broking group which offered a "wide range" of products focussed on personal and small-to-medium enterprise commercial lines, with more than 1.5 million live policies.

Hg partnered with A-Plan in 2015, at the time saying it recognised A-Plan's "best-in-class" customer success model.

Since then, it had worked with A-Plan's management to execute a strategic programme of mergers and acquisitions, upgrade data and software capabilities and further diversify it into specialist market segments.

"The decision to complete a refinancing of the business has been driven by A-Plan's strong and consistent trading performance, with the company delivering double-digit earnings growth over the last four years," the Hg board said in its statement.

Following the refinancing, just under £200m of proceeds would have been returned to the Hg7 fund, representing around 1.3x original cost of the A-Plan investment, with no sell-down of its equity ownership

Overall, the Hg7 Fund had now returned more than 60% of invested capital to clients, with a 25% gross internal rate of return as at September, and further liquidity events planned in the coming months.

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