City darling Hg Capital pockets £1.6bn as LSE-listed fund sells cloud business to German rival

City investor Hg confirmed to City AM this morning the sale of Transporeon, a cloud-based transportation management software platform, to rival Trimble in a deal that values ​​the business at around €1.88 billion, or £1.62 billion.

Transporeon provides a cloud-based transportation and logistics management platform enabling automation, real-time insights and collaboration on €48 billion of annual freight.

This sale marks the fourth full realization by Mercury for a strategic buyer over the past 12 months. The previous sales of Mercury to ResMed, Allocate Software and RL Datix, and itm8 merged to AddPro were all successful in delivering more than $7 billion in customer returns in the last 12 Months.

The transaction is expected close in the first quarter of 2023, subject o the usual closing conditions and regulatory approvals.

Europe and the United States

Hg spent 20 years focusing on the software business in Europe and North America. This led him to pursue the business, and be involved with it for almost a decade before investing.

Both companies reported this morning that the business has experienced solid growth and continued margin expansion over various cycles.

“The past three years have greatly accelerated our mission to make transportation in sync with the world,” said Stefan Seiber, CEO, Transporeon. “Innovation in our products and business expansion have built an impressive platform in a fast-growing sector, with much-needed solutions at the global level. Scientist “.

In addition, Stephane Margolis, partner at Hg, explained, “We have been tracking Transporeon for many years, and have been impressed by its unique worldwide logistics network, solving real problems in the supply chain in a sector that is largely digital.”