Hg invests in audit software developer CaseWare

Hg has acquired a stake in CaseWare International, a Toronto-based developer of audit software solutions for accountants, corporations and governments.

Hg has acquired a stake in CaseWare International, a Toronto-based developer of audit software solutions for accountants, corporations and governments. No financial terms were disclosed. Hg’s investment, made through its Genesis 8 Fund, marks CaseWare’s first-ever institutional investment.

Correction: A previous version of this report used an incorrect version of Hg’s name in the brief and the headline. The report has been updated.

PRESS RELEASE

TORONTO–(BUSINESS WIRE)–Hg, a leading global software investor, today announces that it has made a strategic investment in CaseWare International Inc (“CaseWare”), a global leader in audit and assurance software. Terms of the transaction were not disclosed.
CaseWare is based in Toronto, Canada, and develops cutting-edge audit software solutions for accounting firms, corporations and governments. CaseWare’s platforms – Working Papers and IDEA – aim to change the future of audit and audit analytics by adopting cloud technology as well as artificial intelligence and machine learning, enabling measurable returns on efficiency, quality and value, for customers and their clients. For over 30 years CaseWare has been a technology leader in the sector and has grown organically to over 500,000 users in 130 countries today, serving 16 different languages.

Hg will invest by acquiring a significant stake in the business, which will be made from the Genesis 8 Fund, and represents CaseWare’s first ever institutional investment. Hg’s investment and knowledge in global financial software businesses will help to support the company, particularly in accelerating the growth of CaseWare Cloud, which is already supported by more than a million audit engagements.

Earlier in the year Matt Dodds, previously General Manager of CaseWare IDEA, became CEO of CaseWare. Dwight Wainman and Maureen Naughton, Co-Founders and previously CEO and COO respectively, have moved to become Board members and remain significant shareholders in the business.

Dwight Wainman, Co-Founder of CaseWare, said: “We selected Hg as our partner in order to help us, our employees and our distributors to accelerate a shared vision of being the leading cloud Audit & Assurance software provider across the world. Hg’s experience in business software and its partnership approach to its investments will allow us to realise the potential in our suite of cloud products, which we have been developing for the past 8 years, through further investment in our distributors and deepening our employee base.”

Matt Dodds, CEO of CaseWare, said: “Hg’s investment and significant experience in our sector comes at a very exciting time for CaseWare. Together with Hg, we are ready to accelerate the growth of our next generation audit and assurance cloud products, which will significantly benefit and enrich the experience of our customers. The investment will also help us to continue our sector expansion and implement other areas of value-creation and product development across the business. We welcome the team from Hg and are really excited about what the future holds.”

Jonathan Boyes, Partner at Hg, said: “Dwight and Maureen, along with an amazing group of employees, have created a truly remarkable business. Very early on they saw the potential for cloud technology and, since starting the business over 30 years ago, have created a leading global enterprise in audit workflow and analytics software, with further runway to significantly grow the business. We are truly delighted that they have selected Hg as a partner to continue this work with them, Matt and the team, over the long-term.”

Alexander Johnson, Principal at Hg, said: “Our experience in the Tax and Accounting technology space means we have known and admired CaseWare for many years. We’ve spent a long time getting to know the team over this time and we recognise the huge potential in the business. We are really excited to partner with them for the next phase of growth.”

CaseWare International Inc
CaseWare International operates in 130 countries, through a network of dedicated regional distributors servicing over 500,000 users. CaseWare has been a leading supplier of award-winning audit and assurance software to governments and professional and corporate clients for more than 30 years. The company’s mission is to create breakthrough opportunities that push the technological boundaries in the industry, being dedicated to continuous innovation for accountants and auditors in practices, in corporations and governments worldwide.

About Hg
Hg is a leading global investor in software and services, focused on backing businesses that change how we all do business. Deep technology expertise, complemented by vertical application specialisation and dedicated operational support, provides a compelling proposition to management teams looking to scale their businesses. Hg has funds under management of over $30 billion, with an investment team of over 140 professionals, plus a portfolio team of more than 30 operators, providing practical support to help our businesses to realise their growth ambitions. Based in London, Munich and New York, Hg has a portfolio of over 30 software and technology businesses, comprising over 35,000 employees across the UK, US and Europe. For further details, please visit the Hg website: https://hgcapital.com