KKR closes in on Iris Software acquisition

The news: Bloomberg reports that the private equity giant KKR is in talks to acquire UK accounting, payroll, HR and education software provider, Iris Software.

The numbers: The transaction could value Iris at around £3 billion ($5.74 billion). KKR is reportedly setting up debt financing from direct lending funds, including a £1.1 billion unitranche loan, with a £350 million delayed draw term loan on top.

The context: If it succeeds the deal would rank as 2023’s largest buyout of a private European tech firm. The PE firm is currently in talks to buy a 50% stake in healthcare tech firm, Cotiviti, which would value the business at USD11 billion ($16.8 billion). Last week KKR also announced an all-cash £1.4 billion bid to take UK smart energy metering firm, Smart Metering Systems private.