HgCapital announces sale of Dext Software

HgCapital Trust announced the sale of bookkeeping automation solutions provider Dext Software to accountancy, education management, HR, and payroll specialist Iris Software Group on Tuesday.

The FTSE 250 company said the terms of the transaction remain undisclosed, with completion subject to customary closing conditions.

It said the deal valued its stake in Dext at about £32.7m, representing a 13% uplift from its previous carrying value of £29.1m as of 30 September.

That translated to an increase of 0.8p per share in HgCapital’s net asset value (NAV).

Pro-forma adjustments placed the firm’s estimated net asset value at £2.4bn, or 523p per share.

HgCapital said its available liquid resources stood at £445m, accounting for 19% of its pro-forma net asset value, including an undrawn bank facility of £347m, positioned for future investments and commitments.

Iris was reportedly planning to integrate Dext's AI-driven bookkeeping platform with its own cloud-based solutions to create an end-to-end accountancy workflow for accountants, bookkeepers, and businesses.

The acquisition was designed to address challenges such as ‘app fatigue’, by enabling data exchange across platforms and enhancing regulatory compliance capabilities in key markets including the UK, Canada, France, and Australia.

At 0845 GMT, shares in HgCapital Trust were up 0.57% at 531p.

Reporting by Josh White for Sharecast.com.