LOS ANGELES: AuditBoard, a leading connected risk platform transforming audit, risk, compliance and ESG management, today announces that it has reached an agreement to be acquired in a transaction valued at over $3 billion, by Hg, an experienced and global leading investor in compliance, risk and accounting software over the last 20 years.
AuditBoard is a software solution that helps audit, risk, and compliance professionals manage enterprise, assurance, and compliance risk.
The company serves more than 2,000 enterprises, including nearly 50% of the Fortune 500. Founded in 2014, AuditBoard announced earlier this year it had crossed a milestone of $200 million in annual recurring revenue during late 2023. Its last funding round took place in 2018 – a Series B led by Battery Ventures, the firm’s largest institutional shareholder.
“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,” said Scott Arnold, AuditBoard CEO.
He added: “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.”
“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,” said Nic Humphries, Senior Partner and Head of the Saturn funds at Hg.
“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 team, to support the company on its next phase of rapid global growth and platform expansion.”
“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,” said Alan Cline, Head of North America at Hg.
“It 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.”
Hg has a long and successful history of investing in enterprise software companies over the last 20 years. 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.
“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,” said Michael Brown, a Battery Ventures general partner and board member.
“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.”
“When we founded the platform back in 2014, our goal was to use software to solve the serious challenges that exist for an auditor,” said 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.” Jay Lee, AuditBoard co-founder added, “Our sincere congratulations to Scott, Hg and the AuditBoard team. I can’t wait to see what’s next.”
Goldman Sachs & Co. LLC is serving as exclusive financial advisor to AuditBoard; Cooley LLP is serving as legal counsel to AuditBoard.
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