Leonard Green & Partners to Acquire £3.15 Billion Stake in Iris Software from Hg

Buyout firm Leonard Green & Partners is set to acquire a £3.15 billion stake in Iris Software from Hg in a £3.15 billion ($4 billion) deal. This unique private equity purchase in the technology industry positions Leonard Green as a co-controlling shareholder alongside Hg, with Iris reinvesting in the company. Iris, a provider of software to the UK payroll, accounting, HR, and education sectors, will benefit from Leonard Green's investment to expand into North America, which currently contributes over 25% of its revenue.

The deal comes at a time when rising interest rates have impacted tech dealmaking, making this acquisition a standout event in a year marked by subdued deal volumes. The investment is expected to strengthen Iris's market presence and strategic initiatives, with Hg retaining a minority stake and continuing its association with Iris since its initial investment in 2004.

Financial advisory for Hg was provided by Arma Partners and Rothschild & Co., while Leonard Green, headquartered in Los Angeles, received guidance from Jefferies International and William Blair. The agreement signifies a resurgence in deal activity as companies aim to conclude the year with strategic partnerships and acquisitions.

This move underlines Leonard Green's commitment to driving Iris Software's growth and underscores the company's strategic focus on expanding its footprint in key markets, particularly in North America.