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In a strategic move to dominate the growing cloud accountancy sector, IRIS Software Group has announced it has reached an agreement to acquire Dext, a leading financial recording platform, from global private equity giant Hg. The deal, which will close in December, marks a significant step in IRIS’s efforts to enhance its product portfolio and meet the increasing demand for automated financial solutions.

Hg Agrees to Sale of Dext to IRIS : A Deal Worth Millions

Though the financial details of the transaction were not disclosed, the deal values Hg’s investment in Dext at approximately £32.7 million, reflecting a £3.6 million increase in the platform’s value since September. The acquisition positions IRIS to build on its existing capabilities, offering a more comprehensive cloud-based suite of accountancy tools.

Elona Mortimer-Zhika, CEO of IRIS, described the acquisition as a key milestone for the company. “This acquisition is a direct response to the growing need for automation in accountancy,” Mortimer-Zhika said. “By integrating Dext’s solutions, we can offer our clients a more powerful, compliant suite of cloud-based tools that will save them time and boost productivity.”

Enhancing the Cloud Accountancy Experience

Iris Software Group’s move to acquire Dext aims to improve the automation features of its existing portfolio. The combination of Dext’s bookkeeping platform with IRIS’s own suite of tools will help streamline financial operations for accountants, freeing up valuable time for client advising, business growth, and overall strategic focus.

The deal also enhances the IRIS platform's integration capabilities, expanding the number of Dext’s products while boosting the company’s partner integration program. This program currently supports over 35 bookkeeping software platforms and connects to more than 11,500 financial institutions globally.

A Perfect Pairing for Accountancy Professionals

Both IRIS and Dext are highly compatible with a wide range of accounting software and bookkeeping services. This flexibility ensures that users can continue utilizing their existing tools while benefiting from the seamless integration of IRIS’s advanced management and compliance features, such as accounts production and tax returns.

Dext, known for its ability to streamline bookkeeping and increase productivity by automating routine tasks, complements IRIS’s offerings. Together, they aim to create a unified solution for accountants, covering everything from data entry and processing to compliance, reporting, and advisory services.

An Exciting New Chapter for Dext

Dext’s CEO, Sabby Gill, expressed excitement about the future of the company post-acquisition. “This partnership gives us the resources and support to accelerate our innovation and product development, enabling us to offer a complete, end-to-end solution to our customers,” Gill said.

Cloud Accountancy Market Poised for Growth

As small and medium-sized businesses increasingly turn to cloud-based solutions for their accounting needs, the global market for accounting software is expected to see substantial growth. Research by Mordor Intelligence estimates the market will reach $20 billion in 2024, with a compound annual growth rate of 9.2%, expected to bring the market’s value to $30.6 billion by 2029.