Managers at tax, payroll and practice software house IRIS this week completed a £102m buy-out with backing from private equity investor HgCapital.
IRIS has been a player in the finance market since Lloyds Development Capital acquired two-thirds of the company in 2000 for an £8m stake in a £33m deal backed by the Royal Bank of Scotlan. As part of the MBO, Lloyds is selling its shareholding for £48m, but will reinvest £8m to hold on to an 8% stake.
IRIS group chief executive Martin Leuw, who spent most of Tuesday communicating details of the MBO to staff and customers, emphasised that the new ownership structure was designed to support the next phase of IRIS's growth
Nic Humphries, a partner and head of technology investment at HgCapital, called IRIS "an example of a world-class UK software company".
He continued: "It has produced strong growth by delivering a high-quality product and exceptional customer service. HgCapital's technology team has been researching the business software market for some time and we believe that there is potential for significant growth in the UK."
With HgCapital's backing, Humprhies saw excellent opportunities for organic growth supplemented by "complementary acquisitions".