Accounting software developer IRIS has received a round of funding from Hg Saturn Fund and Intermediate Capital Group.
The investment will be made as part of a new joint partnership between Hg and Intermediate Capital. Hg is making the investment through its Hg Saturn Fund and will invest around £37.5m, alongside an undisclosed contribution from Intermediate.
This deal will see Hg6 Fund sell its entire share within the company to the new partnership, and will earn a 4.2-times return and a 26 per cent IRR – IRIS’ exit valuation was £1.3bn.
IRIS provides business-critical software and services to the UK accountancy, education and business market. Its services can be used by finance teams to support their accounting, payroll, bookkeeping, tax and practice management processes.
Through the platform, a user can access an automated payroll enrolment solution, as well as capabilities to send payslips via smartphones or completing the entire process on a cloud-based solution. Its services are used by over 21,000 accountancy companies and more than 80,000 SMBs, according to the company.
ICG CIO Benoit Durteste said, “In our opinion IRIS is a first-class business with a great track record led by a talented management team, focused on regulatory and compliance driven software solutions. IRIS is well positioned for further organic and inorganic growth. It is a great way for us to start our new ICG European Fund VII.”
Earlier in the year, fellow payroll technology developer CloudPay bagged a $25m investment from Rho Ventures, Pinnacle Investment Partners, and Hercules Capital. The capital was raised to support it with global expansion plans, with plans to move into four more countries during 2018.
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