UK software firm Access is worth £9bn as Singapore takes stake | Economic news
A Loughborough-based software company is set to outperform FTSE-100 technology champions Sage Group as it finalizes a deal to sell a stake to a Singaporean public investment fund.
Sky News has learned that The Access Group, which was founded in 1991, is in advanced talks over a deal which will value it at around £9billion.
Sources said on Wednesday that Access, which supplies business management software to mid-sized companies in the UK, Ireland and Asia, could complete the deal within weeks.
It will see the company’s existing private backers, Hg and TA Associates, continue to support the company by reinvesting in it.
Singapore’s Government Investment Corporation (GIC) is expected to become a significant minority shareholder under the deal.
Meanwhile, Hg’s stake will be transferred to his Saturn vehicle, which owns his stakes in large-cap software companies.
With a valuation of £9bn, Access will be more valued than FTSE-100 software provider Sage Group.
Sage has a current market capitalization of £6.8 billion.
Access, which has enjoyed 16 years of uninterrupted profit growth, would be ranked around 55th if it were included in the FTSE-100.
By securing such a colossal valuation, the Access deal will cement Hg’s status as one of the most successful software industry investors in the world.
Hg’s Saturn fund also has large stakes in IFS and Visma, both of which are worth more than $10 billion.
The timing of the Access deal is also significant, as it underscores the continued explosive growth in value of successful enterprise software companies, even as broader technology-related businesses face a challenging funding environment. more turbulent.
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When Hg originally invested in Access in 2018, the company had an enterprise value of £1bn.
Hg reinvested and became the majority shareholder two years ago.
Access, which has around 60,000 customers and 5,000 employees, has added hundreds of millions of pounds in revenue by acquiring dozens of smaller businesses in recent years.
It specializes in providing software for financial management systems and so-called human capital management, as well as industry-specific software for sectors such as legal and hospitality.
Hg and The Access Group declined to comment, while GIC could not be reached for comment.