Kennet Partners has agreed to sell its stake in Dext – formerly ReceiptBank – to global software and services investor Hg.
The European technology growth equity investor, which focuses on bootstrapped and capital efficient companies, has made a 4.4 times return on its investment with the deal.
Kennet was the first institutional investor in Dext, a digital, multi-product platform for accountants and bookkeepers, after acquiring its stake in the company in 2016.
The sale of Kennet’s stake in Dext comes after a record-breaking financial quarter following the tech firm’s rebrand earlier this year.
Dext now supports over one million users in 242 countries and has digitised over 408m pieces of paper. The company currently processes millions of financial documents per week.
Hillel Zidel, Managing Director, Kennet Partners, said: “As the first institutional investors in Dext back in 2016, we saw the potential and opportunity to build a market leading position in the bookkeeping automation category.
“Dext’s capital efficiency, business model, strong foundations and ethos is exactly in line with Kennet’s investment strategy. We wish Adrian and the team the best of luck on the next stage of what will continue to be a great journey.”
Adrian Blair, CEO, Dext, said: “As an original backer of Dext, Kennet have played a key part in our growth to over 1 million users. Our record-breaking start to 2021 is testament to the stewardship that Kennet and our investors have provided.”
The announcement follows Kennet’s recent successful exit from Nuxeo which saw Kennet realise more than 5x return on its investment.