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.
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.
About AuditBoard
AuditBoard is the leading cloud-based platform transforming
audit, risk, compliance, and ESG management. Nearly 50% of the
Fortune 500 leverage AuditBoard to move their businesses forward
with greater clarity and agility. AuditBoard is top-rated by
customers on G2, Capterra, and Gartner Peer Insights, and was
recently ranked for the fifth year in a row as one of the
fastest-growing technology companies in North America by Deloitte.
To learn more, visit: AuditBoard.com
About Hg
Hg supports the building of sector-leading enterprises that
supply businesses with critical software applications or workflow
services, delivering a more automated workplace for their
customers. This industry is characterised by digitization trends
that are in early stages of adoption and are set to transform the
workplace for professionals over decades to come. Hg’s support
combines deep end-market knowledge with world class operational
resources, together providing compelling support to entrepreneurial
leaders looking to scale their business – businesses that are well
invested, enduring and serve their customers well.
With a vast European network and strong presence across North
America, Hg’s 400 employees and around $70 billion in funds under
management support a portfolio of around 50 businesses, worth over
$140 billion aggregate enterprise value, with around 110,000
employees, consistently growing revenues at more than 20% annually.
For more information check out https://hgcapital.com/
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version on businesswire.com: https://www.businesswire.com/news/home/20240523118304/en/
AuditBoard Devin Davis +1 (510) 508-7113
Hg Tom Eckersley +44 (0)208 148 5401
Harry Mayfield (Brunswick, USA) +1 917 818 5204