- FMP Global Holdings (FMP Global) is a leading UK-based provider of international payroll services and HR software to SMEs
- FMP Global was formed in 2016 via the merger of three payroll and HR software and services companies, backed by a financial sponsor, Tenzing Private Equity (Tenzing)
- IRIS Software Group (IRIS) is a UK-based provider of business-critical software and services to the accountancy, education and business markets and is one of the largest private equity-backed software companies in the UK
Acquired by Hg Saturn Fund (Hg) and ICG in May 2018, IRIS serves over 21,000 accountancy practices, including 83 of the top 100 practices, and more than 85,000 SMEs, corporates and payroll bureaus Process:
- Following almost 3 years in the Tenzing portfolio, the shareholders of FMP Global launched an auction process to find a new investor
- DC Advisory (DC) was engaged by IRIS in June 2019 to provide detailed financial and modelling support as well as commercial advice on the appraisal of FMP Global
- Alongside detailed valuation analysis, DC provided the IRIS team with intelligence and tactical support throughout the process
- Following a competitive process, IRIS was able to accelerate significantly to signing, with the transaction announced in August 2019
DC supported the client in managing a comprehensive diligence and legal process to ensure the transaction was successfully delivered on a tight timeline Outcome:
- FMP Global represents IRIS’s largest acquisition to date and an opportunity to bolster its HCM and payroll software revenue growth while expanding both its domestic and international presence
- Under IRIS’s ownership, FMP Global will be able to leverage the group’s large customer base and broad offering to accelerate through its next phase of growth
- This transaction firmly builds on DC’s HR Technology & Software capabilities, solidifying DC's position as a market-leading advisor in the HCM space and reinforcing the strong institutional relationship with both IRIS and Hg, which have been both a client and a counterparty on a number of transactions (including advising Hg on the acquisition of IRIS in May 2018)
The financial terms of the transaction were not disclosed and the deal is expected to close in Q3 2019
On behalf of the IRIS team, I would like to thank DC Advisory for their superb effort. We greatly valued their strategic insight, process expertise and professionalism which was critical in negotiating in a competitive process and getting the deal over the line in a short timeframe.
We are delighted to have helped IRIS deliver a landmark transaction, leveraging our HCM expertise and further deepening our relationship with one of the UK’s most exciting software companies.