Hg Invests in Prophix to Continue to Scale the Business and Invest Further in Product and Technology
Mississauga, Canada; New York, USA and London, UK –
Prophix, a global leader in Corporate Performance Management (CPM) software, today announced an investment from Hg, a leading global software investor. Hg’s investment is expected to accelerate and scale Prophix’s growth and fund further development of its product capabilities.
Prophix employees and management will participate to acquire the company alongside Hg, who will hold the majority investment. This will allow staff to benefit more directly from the organization’s ongoing growth.
Founded in 1987 a, Prophix is CPM software serves mid-market companies across multiple industries worldwide, providing planning, budgeting and financial reporting software into the ‘office of the CFO’. Prophix’s software hlps organizations to improve their financial reporting capabilities, while also standardizing and streamlining the budgeting process to generate significant ROI through a faster time to close, reduction in budgeting errors and an ability to reforecast in a more agile way.
Prophix has over 1,600 customers, and one of the highest industry-leading retention rates and best-in-class customer NPS.
Alok Ajmera, Chief Executive Officer of Prophix, said: “Our journey so far has shown us that there is still so much to play for in our industry. We have significant ambitions for the business and Hg’s investment and operational experience in software will help us reach these goals. We will look to serve our customers better than ever before, as we invest further in our sales and marketing functions, further our R&D capabilities, accelerate our transition to the cloud and look to scale our business across several regions, including in Europe. Hg has successfully helped businesses to accomplish these goals many times over and we’re excited to tap into some of this experience to unlock our full potential.”
Paul Barber, Founder and Executive Chairman of Prophix, said: “This is a really momentous announcement for the team at Prophix and we warmly welcome Hg as a key strategic partner today. It has been an incredible journey to date, and I am so grateful to the enormous talent that has seen us get to this stage. Together with Hg we will move forward with an unstoppable team and a very bright future for the business.”
This partnership with Prophix reinforces Hg’s focus on mission critical B2B software sitting at the intersection of Hg’s experience in ERP and Tax & Accounting. .
Jonathan Boyes, Partner at Hg, said: “Prophix sits right at the heart of a universe that we have been investing in for almost two decades. This means that we recognise high-quality when we see it and Prophix falls firmly into this category. Prophix is a great business run by an impressive team. They have created a best-in-class cloud product that serves a very satisfied customer base, with a huge runway for further growth. We’re really excited about joining the team.”
Ben Meyer, Partner and co-lead of Hg’s New York team, said: “We see significant growth opportunity from the continued adoption of CPM software by mid-market organizations, as the need for real-time financial information and the ability to budget & reforecast in a more agile way becomes increasingly important. Prophix is positioned incredibly well to benefit from this trend, which is a testament to the successful efforts of Paul, Alok and the rest of the Prophix team. We look forward to partnering with Alok and his team to help the company continue to realise its future growth potential.”
