Hg is investing $1 billion in TA Associates-backed insightsoftware, a Raleigh, North Carolina-based software company with solutions tailored to the “office of the CFO”. The deal assigns insightsoftware an enterprise value of approximately $4 billion. Hg an TA will jointly control the business alongside minority owners Genstar and ST6.
Raleigh, NC, USA and London, United Kingdom. 13 July 2021 – insightsoftware, a global provider of enterprise software solutions for the ‘Office of the CFO’, today announced that it has secured an investment from Hg, a leading global software and services investor.
The Hg Saturn 2 Fund will make a c.$1 billion equity investment in insightsoftware to become a significant minority shareholder alongside TA Associates (“TA”) in a transaction valuing the business at an Enterprise Value of around $4 billion. TA and Hg will share joint control. As part of the transaction, insightsoftware will also continue to be supported by minority shareholders Genstar and ST6.
insightsoftware is a leading provider of financial reporting and enterprise performance management (EPM) software, enabling the ‘Office of the CFO’ to connect to and make sense of enterprise data in real time so they can proactively drive greater financial intelligence.
insightsoftware was formed in 2018 by TA and ST6. Since then, the business has grown rapidly, building a suite of software products across reporting, budgeting & planning, close & consolidation, tax, disclosure and equity management. Today, more than 28,000 customers worldwide rely on these products to provide them with increased productivity, visibility, accuracy and compliance across their organizations. Headquartered in Raleigh, NC, with offices around the world, insightsoftware has more than 1,000 employees serving over 600,000 global users.
Mark Friedman, Executive Chairman of insightsoftware and Managing Director of ST6, said: “In insightsoftware we have brought together some of the best investors and most experienced operators in enterprise software. This alignment and focus, after multiple years of working together to build businesses, has resulted in value creation of significant velocity after just a few years, starting with a business with $35 million in revenues to one with revenues almost 10 times that today. There is still more to do to reach the full potential of insightsoftware. We’re just getting started and we’re thrilled to be partnering with Hg again on this journey.”
Nic Humphries, Senior Partner and Head of the Hg Saturn team, and Thorsten Toepfer, Partner at Hg, said: “insightsoftware is a great example of a best-in-class team of software experts coming together to create a cloud platform that drives better business outcomes for thousands of customers around the world. The business sits right at the heart of a cluster – tax and accounting software – that we have been investing in for almost two decades and we look forward to bringing this experience to the rest of team.”
Jim Triandiflou, CEO of insightsoftware, said: “insightsoftware has been a rocket ship of growth since TA and ST6 created the business just over three years ago. Hg’s expertise with ERP providers and presence in Europe will add additional fuel to our growth. Together we will be able to give companies around the world the financial confidence to pursue their missions.”
Hythem El-Nazer, Managing Director at TA, said: “We are very pleased to welcome Hg as an investor in insightsoftware. Since TA’s founding of the company in 2018, insightsoftware has realized significant and sustained organic and acquisitive growth, expanding its geographic and product footprint and becoming a recognized leader in financial reporting software. We are excited to continue our partnership with insightsoftware and look forward to working closely with management and our fellow investors to support the company’s continued growth.”
Eli Weiss, Managing Director of Genstar, said, “We saw an opportunity to partner with TA and ST6 to help accelerate the company’s global leadership both organically and via M&A. Since our investment in 2019, insightsoftware has completed 12 acquisitions and we believe the company is still in the early innings of change.”
The terms of the transaction have not been disclosed and completion is subject to customary closing conditions.