OC&C Advises IRIS on $4bn Recapitalisation by LGP

OC&C is pleased to congratulate IRIS Software Group on its recent recapitalisation by Leonard Green & Partners, valuing IRIS at an enterprise value of c.£3.15bn. OC&C provided sell-side commercial due diligence for IRIS.

IRIS is a leading provider of mission-critical cloud software in accountancy, payroll, HR and education. IRIS’s cloud products empower over 100,000 customers across the UK and North America to be more productive, drive better engagement and ensure compliance with regulations. IRIS has grown significantly both organically and through acquisitions over the last 5 years, achieving revenue and EBITDA growth rates of 20% CAGR. Today IRIS has a rapidly growing presence in North America, which now accounts for over 25% of group revenues.

LGP will take a co-controlling stake in the business, supporting IRIS’s US expansion ambitions with its local presence and network. Hg, a leading investor in European and transatlantic software and services businesses, will retain a co-controlling stake in IRIS in acknowledgement of Hg’s transatlantic capabilities and strong 20-year relationship and experience working with the IRIS team. As part of the transaction, ICG will remain as a minority investor in the business.

OC&C has worked with IRIS over many years, including extensive work on strategy development. This deal underlines OC&C’s deep expertise in vertical and horizontal software and its continuing track record of advising on landmark software deals in Europe and North America.

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