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, facilitated by Hg, which is also a backer of Dext. Dext, previously known as Receipt Bank, is led by CEO Sabby Gill, who joined the company in 2022 after serving as the UK & Ireland general manager for Sage.

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 enhances productivity by automating bookkeeping tasks using AI.

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 growing their businesses.

Dext boasts over 700,000 customers 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, aiming to strengthen their positions in the financial technology landscape and support accountants worldwide.