Hg Said to Near £3 Billion Iris Software Sale to Leonard Green

Hg is nearing a deal to sell Iris Software to rival buyout firm Leonard Green & Partners, after negotiations with KKR & Co. stumbled at the eleventh hour, people with knowledge of the matter said. 

The transaction may be announced as soon as this week, according to the people. The deal, which will rank as the year’s biggest buyout of a private European software company, could value UK-based Iris at more than £3 billion ($3.8 billion), the people said. 

Bloomberg News previously reported that KKR had pulled ahead of other bidders and was in advanced talks on a purchase of Iris. Hg decided to finalize a deal with Leonard Green instead following some last-minute disagreements with KKR over terms of the transaction, the people said, asking not to be identified because the information is private.

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The situation is fluid, and details of the deal could still change, the people said. A representative for Hg declined to comment. Spokespeople for Leonard Green and KKR didn’t immediately respond to requests for comment.

Iris supplies software for the UK accounting, payroll, human resources and education sectors. The transaction would mark a rare private equity buyout in the tech sector, which has been battered this year as investors face the squeeze from higher rates. 

Source: Bloomberg

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