Boost for IRIS firm.

Transaction Technology, developer of IRIS accounting software, has sold a 65% stake in the company to Lloyds TSB Development Capital for #20m – and revealed plans to float within five years.

The cash injection for the stake includes #12m funding from the Royal Bank of Scotland, but the deal means Lloyds TSB becomes the major stakeholder in the company – a deal which has valued TT at #32m.

TT managing director and chairman David Guest said the deal had been concluded after several months of talks between the parties and said the company was now in a strong position to grow organically and make acquisitions.

In a bid to bolster potential acquisition activity and introduce ‘a more corporate tone’ to the company, IT veteran Mike Shone has joined as chairman.

Previous chairman Guest will remain as managing director.

‘Acquisition is not the main motivation for this deal, however we now have the funds in place if a suitable opportunity arises. We will be looking to grow organically through developing the business, our portfolio and increasing our customer base predominantly in the UK,’ said Guest.

The deal follows a spate of acquisitions and mergers within the UK accountancy software market, which have resulted in many favoured products being shelved.

‘Sage has shelved products with very good reputations such as CSM and Taxsoft. We believe Sage users will not wish to downgrade to its alternatives and are confident many users will vote with their feet over the next 12 months. We will be looking to take advantage of such opportunities’, the Windsor-based company added.

Patrick Sellers, director of Lloyds TSB Development Capital, added: ‘After market and financial due diligence by Burlington Consultants and PwC we are confident Transaction Technology’s management team will develop and grow more effectively.’

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