Hg, the Manager of HgCapital Trust plc ("HgT"), today announces an
investment in AuditBoard, a leading connected risk platform
transforming audit, risk, compliance and ESG
management.
The terms of the transaction are not
disclosed.
HgT will invest approximately £87.2 million in AuditBoard,
with other institutional clients of Hg investing alongside HgT
through the Hg Saturn 3 Fund.
HgT, whose shares are listed on the London Stock Exchange,
gives private and institutional investors the opportunity to
participate in all Hg's investments.
Note that these figures only relate to HgT's share of Hg's
overall investment in AuditBoard.
HgT's liquid resources available for future deployment
(including all announced transactions, the undrawn bank facility
and the full year dividend paid in May 2024) are estimated to be
£570 million (24% of the 31 March 2024 NAV of £2.3
billion).
The investment will reduce HgT's outstanding commitments to
invest in Hg transactions to approximately £739 million (32% of the
31 March 2024 NAV).
AuditBoard agrees
to be acquired by Hg
for over $3 billion
Hg, a leading investor in European and transatlantic software
and services businesses, will help fuel further growth at
AuditBoard, as the company continues to expand its platform and
global reach.
Los
Angeles, CA. May 23, 2024. -
AuditBoard, a leading connected risk
platform transforming audit, risk, compliance and ESG management,
today announces that it has reached an agreement to be acquired in
a transaction valued at over $3 billion, by Hg, an experienced
and global leading investor in compliance,
risk and accounting software over the last 20
years.
The deal validates
AuditBoard's customer centric approach and
potent combination of innovative technology - like the recently
announced AuditBoard AI
- and domain expertise at a time when demand for
its connected risk platform and related solutions is fueling rapid
global growth.
The company now serves more than 2,000 enterprises, including
nearly 50% of the Fortune 500. Founded in 2014, AuditBoard
announced earlier this year it had crossed a milestone of $200
million in annual recurring revenue during late 2023. Its last
funding round took place in 2018 - a Series B led by Battery
Ventures, the firm's largest institutional
shareholder.
"We are grateful to our customers
and their teams for the trust they have placed in us, and view our
partnership with Hg as further validation of our practitioner-first
focus," said Scott
Arnold, AuditBoard CEO.
He added:
"The foundation and culture that our founders
created has meaningfully scaled to create an opportunity for
AuditBoard to become the platform of choice for global
organizations to connect and manage risk. This is an important
milestone for the company, and we couldn't have done it without the
unwavering support of our employees, partners, and incredible
investors - especially Battery Ventures. We look forward to
continuing to build and expand the platform of the future with
Hg."
"AuditBoard's astonishing growth is
a result of its commitment to its SaaS-native beginnings, focus on
customer success and a differentiated, truly modern tech stack,"
said Nic Humphries,
Senior Partner and Head of the Saturn funds at Hg. "We have
been tracking the company's progress for the past five years and
see a massive opportunity ahead. We are excited to partner with
Scott and the AuditBoard team, to support the company on its next
phase of rapid global growth and platform expansion."
"We are absolutely delighted to
invest in such an incredible SaaS success story, led by our San
Francisco team less than two years after opening our West Coast
office, demonstrating the strength of our North American
franchise," said Alan
Cline, Head of North America at Hg. "AuditBoard is exactly
the type of business we partner best with - one that truly knows
its customers and innovates to bring them the best possible
products. We can't wait to get started."
Hg has a long and successful history
of investing in enterprise software companies over the last 20
years. Hg will use its experience to support AuditBoard's
differentiated offerings as it continues to scale, focusing on
product innovation, international growth, and customer
success.
"AuditBoard is a special company -
customer-first, product-led, and one that has bucked recent
industry trends by running in an extremely capital-efficient
manner, instead of continually raising more funding," said Michael Brown, a Battery
Ventures general partner and AuditBoard board member. "While
other B2B tech companies raised ever-bigger funding rounds,
AuditBoard has kept its head down and focused on the fundamentals,
no matter the market cycle. Our partnership with the AuditBoard
team since our first investment in 2018 has been collaborative and
enriching, and I look forward to seeing the company continue to
grow and mature in partnership with Hg."
"When we founded AuditBoard back in
2014, our goal was to use software to solve the serious challenges
that exist for an auditor," said Daniel Kim, AuditBoard co-founder.
"This acquisition represents a realization of not only our vision,
but validates how taking a customer and practitioner-centric
approach is the right way to develop technology that users will be
passionate about." Jay
Lee, AuditBoard co-founder added, "Our sincere
congratulations to Scott, Hg and the AuditBoard team. I can't wait
to see what's next."
Goldman Sachs & Co. LLC is
serving as exclusive financial advisor to AuditBoard; Cooley LLP is
serving as legal counsel to AuditBoard.
For further details:
Hg
Tom Eckersley
+44 (0)208 148 5401
HgCapital Trust
Laura
Dixon
+44 (0)20 8396 0930
Brunswick
Azadeh
Varzi
+44 (0)207 404 5959
Hg@brunswickgroup.com
About HgCapital Trust plc
HgCapital Trust plc, whose shares
are listed on the London Stock Exchange (ticker: HGT.L), gives
investors exposure through a liquid vehicle to a portfolio of
high-growth private companies in the software and services sector.
The selection of new investments and creation of value in these
businesses are managed by Hg, an experienced and well-resourced
private equity firm with a long-term track record of delivering
superior risk-adjusted returns for its investors. For further
details, please see www.hgcapitaltrust.com.
The contents of the Hg, HgCapital Trust, Battery Ventures and
AuditBoard's websites are not incorporated into, and do not form
part of, this announcement.