Secondary Buyout • Software

Leonard Green & Partners, HgCapital and ICG Acquire IRIS

On December 23, 2023, private equity firm Leonard Green & Partners, private equity firm HgCapital and mezzanine finance firm ICG acquired software company IRIS from HgCapital and ICG for 3.2B GBP

Acquisition Context
  • This is Leonard Green & Partners’ 4th, HgCapital’s 46th and ICG’s 8th transaction in the Software sector.
  • This is Leonard Green & Partners’ 2nd, HgCapital’s 0th and ICG’s largest (disclosed) transaction.
  • This is Leonard Green & Partners’ 2nd, HgCapital’s 57th and ICG’s 79th transaction in the United Kingdom.

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M&A Deal Summary

Date December 23, 2023
Target IRIS
Sector Software
Buyer(s) Leonard Green & Partners
HgCapital
ICG
Sellers(s) HgCapital
ICG
Deal Type Secondary Buyout
Deal Value 3.2B GBP

Target Company

IRIS

Slough, United Kingdom
IRIS is a private software house supplying business management solutions to over 60,000 customers, from start-ups to large organisations. IRIS was founded in 1978 and is based in Slough, United Kingdom.
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Buyers Overview 3

Buyer

Leonard Green & Partners

Los Angeles, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1989
PE ASSETS 75.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Leonard Green & Partners is a mega-sized private equity firm that invests in established companies that are leaders in their respective markets. Leonard Green will consider investments in consumer and business services, consumer products, distribution, media, and retail. Typical transaction values for acquisitions are between $500 million and $2 billion, however, the firm is capable of closing transactions valued up to $5 billion. Types of transactions include public-to-private, recapitalizations of privately held businesses, growth capital, equity capital to facilitate acquisitions, turnarounds/restructurings, and acquisitions of divisions/assets from large corporations. Leonard Green & Partners was formed in 1989 and is based in Los Angeles, California.


Deal Context for Buyer #
Overall 102 of 108
Sector: Software 4 of 5
Type: Secondary Buyout 46 of 48
Country: United Kingdom 2 of 2
Year: 2023 4 of 4
Size (of disclosed) 2 of 29
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-12-22 TenCate Grass

Nijverdal, Netherlands

TenCate Grass is a vertically integrated manufacturer, distributor, and installer of artificial turfsolutions. TenCate Grass provides artificial turf solutions for both sports and landscaping applications with a portfolio of diversified brands. TenCate Grass is based in Nijverdal, Netherlands.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-03-28 SRS Distribution

McKinney, Texas, United States

SRS Distribution is a distributor of residential roofing materials and supplies in the U.S. SRS has over 160 branches in more than 40 states serving a diverse group of roofing contractors, home builders, and retailers. SRS Distribution was founded in 2008 and is based in McKinney, Texas.

Sell $18.3B
Buyer

HgCapital

London, United Kingdom

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2000
PE ASSETS 70.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

HgCapital is a European private equity firm focused on a wide range of transactions including public-to-private leveraged buy-outs, management buy-ins, divestitures, and turnarounds. Broad sectors of interest include consumer and leisure, healthcare, industrials, services, technology, media, and renewable energy. The Firm will consider both majority and minority investment positions. HgCapital is the successor to Mercury Capital Partners, a former unit of Merill Lynch which was spun out by management in 2000. HgCapital has offices in London and Munich.


Deal Context for Buyer #
Overall 146 of 153
Sector: Software 46 of 48
Type: Secondary Buyout 47 of 51
Country: United Kingdom 57 of 59
Year: 2023 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-12-08 GGW

Hamburg, Germany

GGW is a property & casualty (“P&C”) focused insurance broker mainly serving SMEs in the DACH region. GGW do even more! In addition to excellent advice on all insurance issues, GGW provide additional services to ensure the corporate security of customers over the long term - so that they can concentrate on their core business with peace of mind. GGW is based in Hamburg, Germany.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-01-02 MeinAuto

Cologne, Germany

MeinAuto is a B2C online platform for new car purchases. The Company is one of Germany‘s leading online platforms for new car sales with over 16 million visitors per year and more than 9,000 dealers connected. MeinAuto was founded in 2007 and is based in Cologne, Germany.

Sell -
Buyer

ICG

London, United Kingdom

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1989
PE ASSETS 33.4B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Intermediate Capital Group (ICG) is a global mezzanine finance firm. IGC looks to provide junior capital to support a wide range of transactions, including buyouts, debt restructurings, and development financing. The Firm generally invests alongside financial sponsors and management teams in transactions valued from €250 million to €1 billion. ICG was formed in 1989 and is headquartered in London.


Deal Context for Buyer #
Overall 288 of 294
Sector: Software 8 of 8
Type: Secondary Buyout 112 of 115
Country: United Kingdom 79 of 81
Year: 2023 4 of 4
Size (of disclosed) 1 of 82
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-12-21 Cura

Spring Hill, Australia

Cura is a provider of day hospital facilities. Cura provides and continually maintains modern and well equipped facilities to the highest safety standards, enabling specialists to focus exclusively on their patients. Cura was founded in 2008 and is based in Spring Hill, Australia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-02-05 Ventura Motors

Dandenong, Australia

Ventura Motors provides shipping and transport. Ventura Motors was founded in 1924 and is based in Dandenong, Australia.

Sell AU$600M

Seller Profiles 2

SELLER

HgCapital

London, United Kingdom

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2000
PE ASSETS 70.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

HgCapital is a European private equity firm focused on a wide range of transactions including public-to-private leveraged buy-outs, management buy-ins, divestitures, and turnarounds. Broad sectors of interest include consumer and leisure, healthcare, industrials, services, technology, media, and renewable energy. The Firm will consider both majority and minority investment positions. HgCapital is the successor to Mercury Capital Partners, a former unit of Merill Lynch which was spun out by management in 2000. HgCapital has offices in London and Munich.


Deal Context for Seller #
Overall 91 of 97
Sector: Software 20 of 24
Type: Secondary Buyout 34 of 36
Country: United Kingdom 46 of 47
Year: 2023 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-12-08 GGW

Hamburg, Germany

GGW is a property & casualty (“P&C”) focused insurance broker mainly serving SMEs in the DACH region. GGW do even more! In addition to excellent advice on all insurance issues, GGW provide additional services to ensure the corporate security of customers over the long term - so that they can concentrate on their core business with peace of mind. GGW is based in Hamburg, Germany.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-01-02 MeinAuto

Cologne, Germany

MeinAuto is a B2C online platform for new car purchases. The Company is one of Germany‘s leading online platforms for new car sales with over 16 million visitors per year and more than 9,000 dealers connected. MeinAuto was founded in 2007 and is based in Cologne, Germany.

Sell -
SELLER

ICG

London, United Kingdom

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1989
PE ASSETS 33.4B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Intermediate Capital Group (ICG) is a global mezzanine finance firm. IGC looks to provide junior capital to support a wide range of transactions, including buyouts, debt restructurings, and development financing. The Firm generally invests alongside financial sponsors and management teams in transactions valued from €250 million to €1 billion. ICG was formed in 1989 and is headquartered in London.


Deal Context for Seller #
Overall 219 of 225
Sector: Software 6 of 6
Type: Secondary Buyout 83 of 86
Country: United Kingdom 58 of 58
Year: 2023 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-12-21 Cura

Spring Hill, Australia

Cura is a provider of day hospital facilities. Cura provides and continually maintains modern and well equipped facilities to the highest safety standards, enabling specialists to focus exclusively on their patients. Cura was founded in 2008 and is based in Spring Hill, Australia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-02-05 Ventura Motors

Dandenong, Australia

Ventura Motors provides shipping and transport. Ventura Motors was founded in 1924 and is based in Dandenong, Australia.

Sell AU$600M