IRIS Software Group has agreed to acquire bookkeeping automation firm Dext Software Ltd in a deal reportedly worth more than £500 million.
IRIS, a global provider of accountancy, education management, HR and payroll solutions, was valued at more than £3 billion last year as investor Hg sold a stake to Leonard Green & Partners and reinvested in the business.
Hg is also a backer of Dext, which is led by CEO Sabby Gill, former UK & Ireland general manager of accountancy giant Sage. He joined Dext – formerly known as Receipt Bank – in 2022.
Gill will join the IRIS global executive team as part of the transaction, which is expected to be finalised in 2024.
The companies said it will unite Dext’s platform with IRIS Elements to deliver a complementary and fully integrated, end-to-end solution for accountants, bookkeepers and businesses.
IRIS Elements supports accountants and businesses with practice management and compliance functionality, such as accounts production and tax returns, while Dext simplifies bookkeeping and improves productivity by automating routine tasks with AI.
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“We are bringing together our amazing customers, partners, and employees to drive the future of tech in the accountancy industry,” said Elona Mortimer-Zhika (pictured), CEO of IRIS Software Group.
“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.”
Dext, which has more than 700,000 customers around the world, already connects to over 35 bookkeeping software platforms and over 11,500 banks & financial institutions.
Sabby Gill
Gill (above) 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.”