AuditBoard, a leading connected risk platform transforming audit, risk, compliance, and ESG management, has reached an agreement to be acquired in a deal valued at over $3 billion by Hg, an experienced and leading global investor in compliance, risk, and accounting software over the last 20 years.
This deal validates AuditBoard’s customer centric approach and potent combination of innovative technology like the recently announced AuditBoard AI and domain expertise at a time when demand for its connected risk platform and related solutions is fueling rapid global growth.
The company now serves over 2,000 enterprises, including nearly 50% of the Fortune 500. Launched in 2014, AuditBoard announced earlier this year it had crossed a milestone of $200 million in annual recurring revenue during late 2023. And its last funding round took place in 2018 – a Series B led by Battery Ventures, the firm’s largest institutional shareholder.
Hg has a solid history of investing in enterprise software companies over the last 20 years. And Hg will use its experience to support AuditBoard’s differentiated offerings as it continues to scale, focusing on product innovation, international growth, and customer success.
Goldman Sachs is serving as the exclusive financial advisor to AuditBoard; Cooley LLP is serving as legal counsel to AuditBoard.
KEY QUOTES:
“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.”
“The foundation and culture that our founders created has meaningfully scaled to create an opportunity for AuditBoard to become the platform of choice for global organizations to connect and manage risk. 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.”
– Scott Arnold, AuditBoard CEO
“AuditBoard’s astonishing growth is a result of its commitment to its SaaS-native beginnings, focus on customer success and a differentiated, truly modern tech stack. We have been tracking the company’s progress for the past five years and see a massive opportunity ahead. We are excited to partner with Scott and the AuditBoard team, to support the company on its next phase of rapid global growth and platform expansion.”
– Nic Humphries, Senior Partner and Head of the Saturn funds at Hg
“We are absolutely delighted to invest in such an incredible SaaS success story, led by our San Francisco team less than two years after opening our West Coast office, demonstrating the strength of our North American franchise. AuditBoard is exactly the type of business we partner best with – one that truly knows its customers and innovates to bring them the best possible products. We can’t wait to get started.”
– Alan Cline, Head of North America at Hg
“AuditBoard is a special company – customer-first, product-led, and one that has bucked recent industry trends by running in an extremely capital-efficient manner, instead of continually raising more funding. While other B2B tech companies raised ever-bigger funding rounds, AuditBoard has kept its head down and focused on the fundamentals, no matter the market cycle. Our partnership with the AuditBoard team since our first investment in 2018 has been collaborative and enriching, and I look forward to seeing the company continue to grow and mature in partnership with Hg.”
– Michael Brown, a Battery Ventures general partner and AuditBoard board member
“When we founded AuditBoard back in 2014, our goal was to use software to solve the serious challenges that exist for an auditor.”
– Daniel Kim, AuditBoard co-founder
“This acquisition represents a realization 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.”
– Jay Lee, AuditBoard co-founder
