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.
Get the week’s top news delivered directly to your inbox – Sign up for our newsletter
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
Can’t stop reading? Read more
J.P. Morgan closes $1.44bn flagship private equity fund above target
J.P. Morgan closes $1.44bn flagship private equity fund above target J.P. Morgan Asset...
Levine Leichtman backs USA Industries in new lower mid-market platform deal
Levine Leichtman backs USA Industries in new lower mid-market platform deal Levine Leichtman...
KKR backs Premialab in $220m push into Middle East growth technology
KKR backs Premialab in $220m push into Middle East growth technology KKR has agreed to invest...