Hg acquires AuditBoard for $3bn

Hg, a London-based investor in European and transatlantic software and services companies, has acquired AuditBoard for more than $3bn (£2.36bn). 

The deal comes at a time when demand for AuditBoard’s connected risk platform and related solutions is fueling rapid global growth. 

AuditBoard currently serves more than 2,000 enterprises, including nearly 50% of the Fortune 500. 

Founded in 2014, AuditBoard announced earlier this year that it had crossed a milestone of $200m (£157m) in annual recurring revenues during late 2023. Its last funding round took place in 2018 – a Series B led by Battery Ventures, the firm’s largest institutional shareholder.

Meanwhile, Hg has a 20-year-long history of investing in enterprise software companies, and will use its experience to support AuditBoard’s differentiated offerings as it continues to scale, focusing on product innovation, international growth, and customer success.

Scott Arnold, CEO of AuditBoard, said: “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. 

“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.”

Jay Lee, co-founder of AuditBoard, added: “This acquisition represents a realisation 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.

“Our sincere congratulations to Scott, Hg and the AuditBoard team. I can’t wait to see what’s next.”