Private equity firm HgCapital have invested an undisclosed sum in BrightPay, the Irish accounting and payroll software provider, ahead of government PAYE reform which will see Ireland move to real time reporting
The investment, made available under the terms of Hg's structured minority investment strategy, allows BrightPay to retain overall control of its business and will be seen as a vote of confidence in BrightPay’s commitment to helping small and medium-sized enterprises (SMEs) meet the challenges of digital tax reform.
Transition Capital, as the scheme is known, offers privately-owned companies an alternative to a minority equity sale through structured equity, which gives owners access to the support of HgCapital and its network while retaining control of their business.
'Hg is a hugely credible investor in this sector and it’s great to secure an investment from a firm who both knows our market and has the experience to help us develop the business,’ said BrightPay’s managing director, Paul Byrne.
Based in the Republic of Ireland, BrightPay provides software solutions for SMEs to manage payroll and is used by over 120,000 employers across the UK and Ireland under two brands, BrightPay and Thesaurus Software.
The move is the tenth investment by HgCapital in businesses within the accounting and payroll sector and comes ahead of the Irish government’s plans for PAYE modernisation, which will require employers to report tax contributions in real time to the Irish Revenue Commissioners.