Hg, an investor in compliance, risk, and accounting software, has agreed to acquire connected risk platform AuditBoard in a deal worth more than $3bn.

Established in 2014, AuditBoard is engaged in transforming audit, risk, compliance and environmental, social, and governance (ESG) management.

The firm helps in closing resiliency gaps and elevating audit, risk, and compliance teams to a more strategic position of influence within their organisations.

Currently, AuditBoard is said to serve over 2,000 enterprises.

Earlier this year, the connected risk platform crossed $200m in annual recurring revenue during late 2023.

The US-based company’s last funding round was in 2018. It was a Series B round led by the company’s largest institutional shareholder Battery Ventures.

AuditBoard CEO Scott Arnold said: “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 organisations 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.”

Through the acquisition, Hg intends to leverage its expertise to boost AuditBoard’s differentiated offerings focusing on product innovation, international growth, and customer success.

Hg senior partner and Saturn funds head Nic Humphries said: “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.”

Goldman Sachs & Co acted as exclusive financial adviser to AuditBoard while Cooley is as legal counsel to the company.

In March this year, AuditBoard joined forces partnered with audit, tax, and advisory firm KPMG to address increasing corporate risk and compliance challenges.