HgCapital invests £11.5m in Iberian B2B software firms

HgCapital Trust announced an investment in CTAIMA and E-coordina, two Iberian companies specialising in contractor management, risk, and compliance software, on Friday.

The London-listed firm said the financial terms of the transaction were not being disclosed, but said it would invest around £11.5m, with other institutional clients of Hg also participating through the Hg Mercury 4 Fund.

It said the investment was Hg's first platform investment in Iberia, continuing its focus on mission-critical B2B compliance software.

The merger of CTAIMA and E-coordina was designed to create a leading contractor compliance platform in the Iberian market, with co-CEOs Lorenzo Zavala and Luis de los Santos at the helm to drive growth and innovation.

The new entity was expected to enhance its product offering and expand its reach across Europe and Latin America, building on significant growth already achieved by both companies.

CTAIMA, based in Tarragona, Spain, had evolved from a consulting firm into an international software-as-a-service platform, connecting over 100,000 contractors and subcontractors with more than 1,000 clients across 17 countries.

Following the transaction, HgCapital Trust’s liquid resources available for future investments were estimated to be £496m, representing 21% of its estimated net asset value as of 30 June.

The investment reduced its outstanding commitments to invest in Hg transactions to about £713m, or 30% of the estimated net asset value.

At 1041 BST, shares in HgCapital Trust were down 3.83% at 527p.

Reporting by Josh White for Sharecast.com.