Azets Group, a leading name in business-critical accounting, tax, payroll, audit, and advisory services for SMEs, has announced a significant development. Pai Partners (“PAI”), a prominent private equity firm, is joining the business as a new investor. Upon completion of the deal, PAI Partners will hold an equal and co-controlling stake in Azets alongside the current owners, Hg, a well-known investor specializing in European and transatlantic software and services businesses.
This strategic move marks a new chapter for Azets, which was initially formed by Hg six years ago. Hg’s vision for Azets was to address the increasing digitalization of financial compliance processes for SMEs. Since its inception, Azets has experienced substantial growth, evolving into a globally recognized, tech-enabled provider of professional advisory, financial, and accounting services tailored for SMEs.
Azets’ continued success is underpinned by the growing trend of SMEs outsourcing non-core yet essential services and the fragmented nature of the professional services sector. The company has strategically acquired over 90 local providers since its establishment. Today, Azets boasts a team of 7,600 professionals supporting over 93,000 clients and generating revenues of approximately £700 million. This impressive growth trajectory is set to accelerate with the backing of PAI Partners.
Now, Azets benefits from the support of two leading private equity investors: PAI Partners, bringing deep sector expertise in Business Services, and Hg, with its established history in software and services investments. Both PAI Partners and Hg have a proven track record of collaborating with management teams to rapidly scale businesses and establish global industry leaders. This dual investment underscores the strong confidence in Azets’ business model and future potential.
With the combined resources and expertise of PAI Partners and Hg, Azets is ideally positioned to continue its ambitious growth strategy. The company plans to deepen its market presence across Europe, both in existing and new markets, through organic growth initiatives and further strategic mergers and acquisitions (M&A). The investment from PAI Partners is expected to be a catalyst for these expansion plans.
Chris Horne, Group Chief Executive Officer at Azets, commented: “Azets has built a strong reputation for delivering innovative tech-enabled services in a sector that has traditionally been slow to adopt technology. Our five-year Pathway strategy provides a clear direction for our business development, and we are delighted to have attracted two investors who share our enthusiasm for the future. Securing backing from another world-class investor like PAI Partners is a testament to our progress and will empower us to capitalize on future opportunities, enabling us to scale and better support our clients and colleagues worldwide.”
Colm O’Sullivan, a Partner at PAI Partners, stated: “Azets, with its robust and resilient business model, offers a solid platform for sustained growth. Its leading market position makes it well-equipped to capitalize on the increasing demands for compliance, regulation, and outsourcing that are fundamental to its core services market. PAI Partners is excited to partner with the management team and Hg in this next phase of Azets’ expansion.”
Matthew Brockman, Managing Partner at Hg, added: “We are thrilled to reach this milestone with Azets. From the initial concept, we have cultivated a world-class company by leveraging our deep sector knowledge and extensive operational capabilities in building software and services businesses. This transaction allows us to return substantial capital to our investors, which has been a key priority for us, while also bringing in significant new expertise from a strong partner like PAI Partners and maintaining a considerable stake in Azets’ continued growth journey.”
The completion of this investment is subject to standard regulatory approvals. This partnership between Azets, PAI Partners, and Hg is poised to drive significant advancements in the tech-enabled accounting and advisory services sector, benefiting SMEs across Europe and beyond. The collaboration highlights the attractiveness of the sector and Azets’ leading position within it.
Advisors Involved:
Hg and Azets management received advisory services from JP Morgan (lead adviser), Jefferies, Alpha Advisory, Skadden, EY, Deloitte, and OC&C. PAI Partners was advised by Deutsche Bank, Freshfields, KPMG, Alvarez & Marsal, and Bain & Company.
Contact Information:
For Azets
Shaun Staff, Azets Group
+44 (0)7515 789306
[email protected]
For PAI Partners
Dania Saidam, PAI Partners
+44 (0)20 7297 4678
[email protected]
For Hg
Tom Eckersley, Hg
+44 (0)20 8396 0930
[email protected]
Azadeh Varzi, Brunswick Group
+44 (0)207 404 5959
[email protected]
About Azets
Azets is a leading international outsourcing, compliance, and advisory group. With 7,600 professionals across 189 offices in Europe, Azets supports 93,000 clients with trusted advice and personalized services in accounting, tax, audit, advisory, people, and technology. Azets aims to save businesses time and enable them to focus on their core ambitions. The company is committed to improving the lives of colleagues, clients, and communities sustainably, underpinned by investments in people and technology. Azets’ proprietary digital workplace technology, Azets Cozone, offers SMEs cloud-based access to business information, streamlining workflows and enhancing client relationships. Blick Rothenberg, and Nordic companies Karabingruppen, Legeregnskap, Luotsi Isännöinti, and Idur are part of the Azets Group. Azets is a member of Allinial Global. Learn more at www.azets.com.
About PAI Partners
PAI Partners is a pre-eminent private equity firm with a global investment focus. Managing approximately €25 billion in dedicated buyout funds, PAI Partners has completed 97 investments across 12 countries since 1994, representing over €70 billion in transaction value. PAI Partners partners with ambitious management teams, leveraging its sector experience and long-term vision to help companies achieve their full potential. For more information, visit: www.paipartners.com.
About Hg
Hg specializes in building sector-leading enterprises that provide critical software and workflow services to businesses, aiming to create more automated workplaces. Hg supports businesses in sectors undergoing digitization, offering deep end-market knowledge and operational resources. With 400 employees and $65 billion in funds under management, Hg’s portfolio includes over 45 businesses worth over $120 billion, employing over 100,000 people and consistently growing revenues at more than 20% annually. For more details, visit www.hgcapital.com.
