established in 1974 and listed on the London Stock Exchange since 1983,
has two divisions: The Microgen Aptitude Solutions Division, providing
software to automate complex business processes and the Financial
Systems Division, providing back office processing software
predominantly for the banking and wealth management sectors.
Microgen’s strategy has been to develop the business through organic
growth and earlier this year completed a Shareholder Realisation
Programme, returning 100% of the market capitalisation (as at October
2008) via dividends, special dividends, tender offers and share
In May 2013 Microgen announced that it was undertaking a strategic
review. The scope of the strategic review was wide-ranging and included
evaluating the possibility of disposals as well as acquisitions to
increase the scale of the group.
With support from RBS, Microgen concluded their review by raising
£20m of Term Debt with RBS. RBS acted as sole Hedge Counterparty and
Arranger delivering an innovative bilateral structure secured against
one of Microgen’s divisions: Financial Systems Division. The facility
has delivered funds to the business combined with ability for both of
Microgen’s divisions to operate autonomously with regard to bolt-on or
transformative acquisitions and disposals.
Philip Wood, Group Finance Director, Microgen plc said: “RBS has
shown a proactive and positive appetite to support Microgen through its
Strategic Review. This innovative borrowing structure provides great
flexibility for Microgen and the wider Group to pursue our strategy.
The close relationship we have with RBS has been instrumental in
delivering this innovative financing package and we look forward to
continuing our relationship with RBS in the future”.
Jon Mosscrop, Relationship Director, Corporate Coverage Media &
Technology, RBS CIB, said: “RBS has developed a strong relationship with
Microgen over a number of years. We are pleased to be able to play a
pivotal role in supporting the business and provide them with the
flexibility to build on the conclusions of their strategic review.”