Microgen Plc secures £20m in funding from RBS in conclusion of its Strategic Review


Microgen Plc secures £20m in funding from RBS in conclusion of its Strategic Review

Microgen Plc, the specialist provider of software and services to the global financial services, digital media and commercial sectors, has secured £20m in funding from RBS for their Financial Systems Division, to support the business in the wake of the conclusion of their strategic review process.

Supporting corporates

30 October 2013

Microgen 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 buy-backs. 

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.”

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