Hg, the Manager of HgCapital Trust plc ("HgT"), today
announces that it has agreed the sale of Dext Software Ltd
("Dext"), a leading bookkeeping automation platform provider, to
IRIS Software Group ("IRIS"), a leading global provider of
accountancy, education management, HR and payroll
solutions
The terms of the transaction have not been disclosed and
completion is subject to closing conditions.
HgT, whose shares are listed on the London Stock Exchange,
gives private and institutional investors the opportunity to
participate in all Hg's investments.
This transaction values HgT's investment in Dext at
approximately £32.7 million. This would represent an uplift of £3.6
million (13% or 0.8 pence per share) over the carrying value of
£29.1 million in the Net Asset Value ("NAV") of HgT at 30 September
2024.
Note that these figures only relate to HgT's share of Hg's
overall investment in Dext.
Based on the 30 September 2024 reported NAV, the pro-forma NAV
of HgT is expected to be £2.4 billion (or 523.0 pence per
share). HgT's available liquid resources, which includes the
undrawn bank facility of £347 million for future deployment
(including all announced transactions and the interim dividend paid
in October) are estimated to be £445 million (19% of the pro-forma
30 September 2024 NAV).
IRIS
Software Group Announces Intent to Acquire Dext Software
Ltd.
Acquisition to create an integrated, end-to-end solution,
advance partner integrations, and drive product innovation for
accountants and businesses globally
London, UK - 3 December 2024:
IRIS
Software Group ("IRIS"), a
leading global provider of accountancy, education management, HR
and payroll solutions, today announced a definitive agreement to
acquire Dext Software Ltd
("Dext"), a leading bookkeeping automation
platform provider. The acquisition will unite two sector-leading
cloud-based platforms - Dext's Bookkeeping
Automation Platform and
IRIS
Elements - to deliver a
complementary and fully integrated, end-to-end solution for
accountants, bookkeepers, and businesses.
On one side of the accounting
value chain, IRIS Elements supports accountants and businesses with
practice management and compliance functionality, such as accounts
production and tax returns. On the other, Dext simplifies
bookkeeping and improves productivity by automating routine tasks
with AI. Together, both companies will cover the entire end-to-end
accountancy workflow, from data entry and processing to compliance,
reporting and advisory services.
Currently, many accountants and
businesses face "app fatigue" juggling multiple, disconnected tools
to get their daily work done. Through integration, IRIS and Dext's
cloud platforms will connect seamlessly with a secure single
sign-on (SSO) and share data effortlessly back and forth across
both platforms. This will, effectively, create a single, end-to-end
view of the entire accountancy workflow. By expanding the global
digital footprint in countries like the UK, Canada, France and
Australia, the acquisition will also support accountants in staying
ahead of rapidly evolving global regulatory and compliance
requirements.
Commenting on the agreement, Elona Mortimer-Zhika, CEO of IRIS
Software Group said, "With today's exciting news, we are bringing
together our amazing customers, partners, and employees to drive
the future of tech in the accountancy industry. We are doubling
down on our promise to build and offer the most compliant cloud
solutions that deliver our customers the highest levels of
productivity and engagement, giving them back the critical time
they need to advise their clients, grow their businesses, and do
what they love. Accountancy has been the heartland of IRIS for 46
years; together with Dext we have a shared passion to be the
biggest supporters and best champions of accountants,
globally."
The transaction will allow IRIS to
accelerate Dext's product roadmap, infuse additional capital and
enhance its partner integration program, which already connects to
over 35 bookkeeping software platforms and over 11,500 banks &
financial institutions. Both IRIS and Dext share a general ledger
(GL)-agnostic strategy, ensuring their platforms can integrate with
a wide array of accounting software and every bookkeeping provider
- connecting multiple workflow streams and providing customers with
unparalleled freedom of choice. Accountants and bookkeepers will
have the flexibility to use their preferred bookkeeping tools while
enjoying the benefits of a smooth, cohesive user
experience.
Sabby Gill, CEO of Dext added, "Joining forces with IRIS marks
an exciting new chapter for Dext. This partnership enables us to
accelerate our product innovation, deepen our integration program,
and deliver a complete, end-to-end solution to our customers. I
look forward to working alongside the IRIS team to unlock new
opportunities for our customers and offer our team members expanded
opportunities for personal and professional
growth."
Upon
closing, Sabby Gill will form part of the IRIS Global Executive
team. The transaction is subject to customary closing conditions
and is expected to be finalised by the end
of this calendar year.
For
further details:
Hg
Tom Eckersley
+44 (0)208 148 5401
HgCapital Trust
Laura Dixon and George Crowe
+44 (0)20 8396 0930
Cadarn
Lucy Clark
lucy@cadarncapital.com
+44
(0)7984 184 461
Cadarn
David Harris
david@cadarncapital.com
+44
(0)7368 883 211
About
HgCapital Trust plc
HgCapital Trust plc, whose shares are
listed on the London Stock Exchange (ticker: HGT.L), gives
investors exposure through a liquid vehicle to a portfolio of
high-growth private companies in the software and services sector.
The selection of new investments and creation of value in these
businesses are managed by Hg, an experienced and well-resourced
private equity firm with a long-term track record of delivering
superior risk-adjusted returns for its investors. For further
details, please see www.hgcapitaltrust.com.
The
contents of the Hg, HgCapital Trust and IRIS Software Group and
Dext Software Ltd websites are not incorporated into, and do not
form part of, this announcement.