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AuditBoard Agrees to be Acquired by Hg for Over $3 Billion

AuditBoard Agrees to be Acquired by Hg for Over $3 Billion

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, 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.

“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.”

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.

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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.

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.

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.

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