ICG eyes £1.2bn acquisition of software supplier Iris - reports

Intermediate Capital Group is reportedly close to reaching an agreement to acquire medical software supplier Iris in a transaction that is expected to value the group at £1.2bn.

In what would be the biggest software takeover deal in UK history, ICG, which posted a strong set of results on Tuesday, will acquire Iris alongside the firm's existing owner, HG Capital.

The deal will see HG's controlling stake in Iris moved to its new investment fund, Saturn, which specifically focuses on large technology investments, according to Sky News sources.

ICG and Saturn were said to be picking up roughly equal stakes in Iris, which specialises in accounting and payroll software for the likes of the Royal Opera House and Bellway Homes.

An agreement between ICG and HG would result in one of the four largest software takeovers in European history and would result in a return on investment for shareholders of around 400%.