IRIS Software Group has announced its acquisition of Dext Software Ltd, a bookkeeping automation firm, in a deal valued at over £500 million. This acquisition is part of IRIS's strategy to enhance its offerings in accountancy, education management, HR, and payroll solutions.

Last year, IRIS was valued at over £3 billion following an investment from Leonard Green & Partners, which acquired a stake from investor Hg. Hg is also an investor in Dext, which is led by CEO Sabby Gill, who previously served as the UK & Ireland general manager for Sage. Gill joined Dext in 2022 when the company was still known as Receipt Bank.

As part of the acquisition, Gill will join the IRIS global executive team, with the deal expected to finalize in 2024. The integration aims to combine Dext’s platform with IRIS Elements, creating a comprehensive solution for accountants, bookkeepers, and businesses. IRIS Elements provides practice management and compliance functionalities, while Dext focuses on automating bookkeeping tasks using AI to enhance productivity.

Elona Mortimer-Zhika, CEO of IRIS Software Group, emphasized the importance of this merger in driving technological advancements in the accountancy sector. She stated that the collaboration aims to deliver compliant cloud solutions that enhance productivity and allow clients to focus on their core business activities.

Dext boasts a customer base of over 700,000 globally and connects with more than 35 bookkeeping software platforms and over 11,500 banks and financial institutions. Gill expressed enthusiasm about the partnership, highlighting the potential for accelerated product innovation and deeper integration, which will benefit both customers and team members.

This acquisition marks a significant step for both companies as they aim to strengthen their positions in the financial technology landscape.