Hg Capital Trust PLC, a leading investor in European and transatlantic software and services businesses, has announced a significant investment in Focus Group, a prominent provider of essential business technology to SMEs in the UK. The terms of the transaction were not disclosed, but HgT will invest approximately £21.3 million in Focus Group, with other institutional clients of Hg investing alongside HgT through the Hg Genesis 10 Fund. This investment will support Focus Group's organic growth plan, M&A ambitions, and product development initiatives, enhancing its ability to deliver innovative solutions for the UK SME sector.
Founded in 2003, Focus Group provides digital workplace solutions to around 30,000 SME customers, offering a single point of contact for their information technology needs, including communications and software solutions, connectivity, and value-added IT services. The partnership with Hg is expected to support Focus Group's continued growth in the UK. Chris Goodman, co-founder of Focus Group, expressed excitement about the new partnership, stating, "This is the beginning of a new and exciting chapter for the business and our incredible team."
Hg's investment will enable Focus Group to capitalize on its sector-leading data and align with Hg's views of the future of the ICT industry, both in terms of product and future M&A opportunities. The long-term trends in small business technology adoption offer Focus a great opportunity to continue its impressive growth trajectory by offering a one-stop-shop for ICT for UK SMEs. Hg's extensive experience in backing companies who sell business services to SMEs is expected to support a valuable partnership for future growth.
The transaction is subject to customary closing conditions, and HgT will announce its Q1 results in May 2024. This investment marks an important step for both Hg and Focus Group, as they aim to leverage their combined expertise and resources to drive growth and innovation in the SME technology services sector.