AuditBoard, a cloud-based software platform for auditors, has agreed to be acquired by London-based Hg, a private equity firm targeting technology buyouts.
The transaction is valued at more than $3 billion.
Cerritos, California-based AuditBoard aims to help automate and transform the way enterprises handle audit, risk, compliance and environmental, social and governance management work. The company was co-founded in 2014 by Daniel Kim and Jay Lee, who grew up together in Cerritos.
AuditBoard said it now has 500 employees, more than 2,000 customers — nearly half consisting of Fortune 500 companies — and annual recurring revenue of more than $200 million.
The company "view[s] our partnership with Hg as further validation of our practitioner-first focus,” said AuditBoard CEO Scott Arnold in a statement.
Hg has 400 employees and around $70 billion in funds under management that support a portfolio of around 50 businesses worth more $140 billion with around 110,000 employees.
“We have been tracking the company’s progress for the past five years and see a massive opportunity ahead,” said Nic Humphries, senior partner and head of the Saturn funds at Hg.
AuditBoard's last round of funding took place in 2018, when the company raised $40 million in a Series B led by Battery Ventures, AuditBoard’s largest institutional shareholder.
Goldman Sachs & Co. LLC is serving as AuditBoard's exclusive financial advisor, and Cooley LLP is serving as its legal counsel on the acquisition.
