Hg Capital Trust PLC has announced its investment in AuditBoard, a leading connected risk platform transforming audit, risk, compliance, and ESG management. The terms of the transaction were not disclosed, but HgT will invest approximately £87.2 million in AuditBoard, with other institutional clients of Hg investing alongside HgT through the Hg Saturn 3 Fund. This investment will reduce HgT's outstanding commitments to invest in Hg transactions to approximately £739 million. AuditBoard has agreed to be acquired by Hg for over $3 billion, with Hg aiming to fuel further growth as the company expands its platform and global reach.
AuditBoard, founded in 2014, serves more than 2,000 enterprises, including nearly 50% of the Fortune 500, and announced earlier this year that it had crossed a milestone of $200 million in annual recurring revenue during late 2023. Scott Arnold, AuditBoard CEO, expressed gratitude to customers and their teams for their trust and views the partnership with Hg as further validation of their practitioner-first focus. Nic Humphries, Senior Partner and Head of the Saturn funds at Hg, expressed excitement about partnering with AuditBoard to support the company's next phase of rapid global growth and platform expansion.
Hg has a successful history of investing in enterprise software companies over the last 20 years and plans to use its experience to support AuditBoard's differentiated offerings as it continues to scale, focusing on product innovation, international growth, and customer success. The acquisition represents a realization of AuditBoard's vision and validates the customer and practitioner-centric approach taken by the company. Goldman Sachs & Co. LLC is serving as exclusive financial advisor to AuditBoard, and Cooley LLP is serving as legal counsel to AuditBoard.