IRIS buys cloud accounts firm KashFlow

IRIS buys cloud accounts firm KashFlow

Summary: The acquisition of online bookkeeping company KashFlow brings IRIS more users and added cloud expertise.

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Accounts and payroll firm IRIS has bought cloud-based bookkeeping software company KashFlow, creating a combined user base of more than 60,000 accountancy firms and smaller businesses in the UK.

According to IRIS, it will continue to provide its OpenBooks product to existing customers through online accounting company FreeAgent but expects to add functionality through a "close tie-in" between the IRIS Accountancy Suite and KashFlow bookkeeping in the cloud.

The acquisition, the terms of which were not disclosed, brings IRIS expertise in cloud bookkeeping software and gives KashFlow greater sales, marketing and support resources.

KashFlow was set up in 2006, initially selling software to Federation of Small Businesses and Prince’s Trust members.

"Around half of all UK accountancy firms already use IRIS to run their business. Now they will be able to collaborate with their clients through tight integration with the KashFlow cloud bookkeeping system," its CEO, Duane Jackson, said in a statement.

"Being part of the wider IRIS Software Group not only gives us direct access to a significant section of the UK accountancy and SME sector but it also makes us part of a wider suite of cloud offerings."

IRIS Software Group CEO Phill Robinson said KashFlow’s cloud services fitted well with his company's existing suite of products.

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Topics: CXO, Cloud, Software, United Kingdom, SMBs

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3 comments
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  • FreeAgent Doomed?

    I'm trying to figure out how FreeAgent shakes out in all of this. Seems that Xero is coming in and taking over and now one of their main partners bought a competitor. I still like and use FreeAgent, but will need to think about long term here.
    BigDave11
  • FreeAgent Doomed?

    I'm trying to figure out how FreeAgent shakes out in all of this. Seems that Xero is coming in and taking over and now one of their main partners bought a competitor. I still like and use FreeAgent, but will need to think about long term here.
    BigDave11
  • FreeAgent is Market Leader, not Doomed!

    @BigDave11: we're far from doomed, we're actually the UK market-leader with more than 34,000 paying subscribers (yes more than Xero and quite a few more than Kashflow. The others are also-rans).

    I think what's happening in the market is more nuanced than you suggest. Acquisitions are done for a variety of reasons on both sides, based on the motivations behind agreeable valuation as well as long-term IP ownership.

    And anyway we see FreeAgent is operating in a somewhat different space to Xero or Kashflow - we're interested in micro-businesses rather than the traditional 'small business' category, and we're strongly focussed on the UK just now. It's a strategy which seems to be paying off.
    Ed Molyneux