A major British provider of accounting software backed by Hg Capital is being sold to another of the private equity group’s portfolio companies in a deal worth more than £500m.
Sky News has learnt that Dext, which has been backed by Hg since 2021, is to be acquired by Iris Software.
The deal could be announced as soon as this week, according to several software industry sources.
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One said the deal was worth about £525m.
Dext, which was previously known as Receipt Bank, has more than 700,000 customers around the world.
It operates in a fast-growing area of the software industry, with artificial intelligence and sophisticated automation techniques driving rapid advances in the sector.
Last year, Hg offloaded a big stake in Iris Software to Leonard Green & Partners in a deal valuing the company at £3.15bn.
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As part of the transaction, Hg reinvested in the business.
Hg is among the world’s most successful investors in specialist software companies, reaping returns worth billions of pounds from its long-term backing of a string of companies.
A spokeswoman for Hg declined to comment on Monday.
Content Source: news.sky.com