REG - HgCapital Trust PLC - Hg agrees sale of Dext to IRIS Software Group

HgCapital TrustAnnouncement

03/12/2024 07:00

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RNS Number : 5104O  HgCapital Trust PLC  03 December 2024

 

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 (https://www.iris.co.uk/)
("IRIS"), a leading global provider of accountancy, education management, HR
and payroll solutions, today announced a definitive agreement to acquire Dext
Software Ltd (https://dext.com/uk) ("Dext"), a leading bookkeeping automation
platform provider. The acquisition will unite two sector-leading cloud-based
platforms - Dext's Bookkeeping Automation Platform
(https://dext.com/uk/bookkeeping-automation-platform) and IRIS Elements
(https://www.iris.co.uk/products/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 (mailto:lucy@cadarncapital.com)
 
 
                                                +44
(0)7984 184 461

 

Cadarn

David Harris

david@cadarncapital.com (mailto: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.

 

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