|
|
 |
| |
| |
|
News |
IRIS and CS Group Join Forces |
 |
Investment partnerships affiliated with Hellman &
Friedman LLC (“H&F”), a leading global private equity
group specialising in various service sectors including
software, financial services and media, has majority
funded the £500 million merger and recapitalization of
IRIS Software Group Limited
(www.iris.co.uk)
and Computer Software Group
(www.computersoftware.com), two of the UK’s fastest
growing and market leading independent software and
services companies.
The enlarged business has combined pro forma revenues of
over £100 million and will trade under the “IRIS” brand umbrella.
The No 1 provider to UK accountancy
practices with c 15,000 contracts
The No 1 provider to UK
law firms with c 3,750 contracts
The No 1 provider to UK
barristers and coroners with c 420 contracts and 10,000
individual barristers
The No 1 provider to the
UK Not For Profit sector with c 295 contracts
The No 2 provider of
Payroll & HR software solutions to UK businesses with c
34,000 contracts
An award winning
provider of accounting and ERP systems to UK businesses
Transoft application
modernization & migration software and services
A leading provider of
special software for sports clubs and field services.
Both businesses have been acquired from HgCapital, which
will remain a significant shareholder in the combined
Group. Lloyds TSB Development Capital (LDC) will exit
from its longstanding investment in IRIS. H&F will be
the majority shareholder while management, employees and
HgCapital will remain substantial shareholders. Bank
finance and acquisition facilities have been provided by
Citigroup and Credit Suisse.
Martin Leuw, Chief Executive of IRIS will become Group
Chief Executive of the enlarged Group. He will be joined
on the Board by Neal Roberts, IRIS CFO who will become
Group CFO. H&F will be represented by Patrick Healy,
Stephen Duckett and Luca Velussi who will join the Board
as non-executive Directors.
Martin Leuw said: “At IRIS, we have consistently
maintained our ambition to be the leading independent
provider of regulatory, accounting and full service
solutions to SMEs and their advisors. This deal delivers
that in one move and provides a first class platform for
future expansion both in the UK and overseas. It is
excellent news for our customers as it significantly
expands our R&D capabilities and service infrastructure
as well as providing tremendous scope for career
opportunities for our employees. We are delighted to
have the backing of Hellman & Friedman to support the
next and very exciting phase of our growth.”
Vin Murria, CS Group CEO added: “The combination of
IRIS’s market leading solutions and highly successful
operational capabilities are hugely complimentary to CS
Group’s M&A driven growth and niche market focus. This
is an exciting opportunity to dynamically grow a
successful customer centric business that can only be
positive for all clients and employees alike. We too are
delighted to have the backing of Hellman & Friedman.”
Stephen Duckett, Managing Director at H&F said: “Both
IRIS and CS Group are exceptional businesses with strong
positions in key verticals, high levels of subscription
revenue and tremendous future growth potential. They
have produced strong organic growth by delivering a
high-quality product set and market leading levels of
customer service, demonstrated by exceptional customer
retention levels. The strategic logic for this business
combination is very sound and we have successfully
adopted a similar investment approach in the USA
vertical software sectors. We see excellent
opportunities for further organic growth supplemented by
continued complementary acquisitions”.
Patrick Healy, head of H&F’s business in Europe said
“Over our 23 year history we have made over 65
investments and nine investments in software. IRIS is a great addition to that roster. We
are proud to be associated with world class management
like Martin, Neal, and Vin. IRIS will provide meaningful
career opportunities to existing and future employees
throughout the UK.”
For further information contact:
For Hellman & Friedman –
Hugh Morrison/Caroline Villiers, M:Communications
Tel: +44-207-153-1521
Steve Bruce/Monica Everett, The Abernathy MacGregor
Group
Tel: +1212-371-5999
SB@abmac.com /
MCE@abmac.com
About Hellman & Friedman
Hellman & Friedman LLC is a global private equity
investment firm with in London, New York City and San
Francisco. Since its founding in 1984, the Firm has
raised and managed approximately $16 billion of
committed capital. The Firm’s strategy is to invest in
superior business franchises and to be a value-added
partner to management in select industries including
media, financial services, professional services, and
information services.
Representative investments include DoubleClick, Inc.,
the NASDAQ Stock Market, Inc. (NDAQ), Gartmore
Investment Management plc, Axel Springer AG (ASV GR),
ProSieben Sat.1 AG (PSM GR), Formula One Holdings, Ltd,
LPL Holdings, Arch Capital Group Limited (ACGL),
Mondrian Investment Partners, Ltd., AlixPartners, and
others. Other software and information services
investments include: Activant Solutions Inc., Blackbaud,
Inc (BLKB), Intergraph Corporation, Kronos, Mitchell
International, Inc, and Vertafore, Inc. For more
information on Hellman & Friedman, visit [elink="http://www.hf.com]www.hf.com.
About CS Group
Computer Software Group Ltd (CS Group) is a fast growing
software business employing over 600 people, with
offices in the UK and US.
The Group’s core business is the provision of commercial
software for selected markets including Legal and
Compliance, Not For Profit, Resource Scheduling, Field
Service and Skills Management, Financials, CRM and
Distribution.
The prestigious customer base of over 8000 organisations
includes 4000 law firms, Alfred Dunhill, Zurich
International, Paymaster General, Arriva, Grant
Thornton, CBI, Tetra Pak, The Gap, L’Oreal, Cable &
Wireless and Cancer Research UK among many others.
As a financially secure supplier, the CS Group’s core
focus is increasing customer choice with future proof
solutions by offering an unrivalled breadth of product
range and depth of domain expertise.
(www.computersoftware.com)
About IRIS
IRIS is independently recognised as one of the largest,
fastest growing and successful independent software
providers in the UK, servicing 45,000 businesses and
9,000 accountancy practices with accounting, payroll and
hr software solutions. Focused primarily on software
applications that keep users up-to-date on regulatory,
accounting and legislative change, IRIS business
software solutions are amongst the most innovative in
the industry; designed to support SMEs and their
advisors.
IRIS is committed to a close interactive relationship
with all of its customers. The result is an outstanding
level of customer loyalty, recognized as amongst the
highest in the industry, with 97% renewing their
contracts each year.
IRIS is a Microsoft Certified Partner and a member of
BASDA.
www.iris.co.uk
|
Contact us for further information
Read more news |
|
|
