IRIS Software Group has today announced the acquisition of award-winning technology firm Octopus HR, for an undisclosed sum.

This successful deal has also proven the catalyst for the formation of IRIS Human Capital Management. With nearly 40,000 customers and over 300 employees, this is now one of the largest providers of people-critical software to businesses in the UK.

The Octopus SaaS-based HR solution has dominated the industry’s ‘micro to SME business’ segment since 2002.  As part of the new IRIS Human Capital Management division – alongside Cascade HR, IRIS payroll, Earnie and KashFlow – IRIS now has an integrated HR and payroll solution to serve both microbusinesses and multinationals, and anything in between.

Commenting on the acquisition, Oliver Shaw, CEO of IRIS Human Capital Management says: “In 2014, we were delighted to acquire Cascade HR – an award-winning HR and payroll software vendor that has long focused on larger businesses with up to 10,000 employees. Like Cascade and IRIS payroll, Octopus has experienced consistently impressive double-digit revenue growth, due to the team’s commitment to outstanding technological capabilities, high levels of service and investment in the cloud.

“But there was a segment of the market Cascade was unable to serve in our customer base – much smaller firms – which left us with a gap in our portfolio. By combining Octopus with our KashFlow bookkeeping and payroll products, IRIS can now provide a business cloud suite for small organisations.”

The acquisition of Octopus HR cements IRIS as a leading technology provider within both the UK human capital management and accountancy sectors.

Kevin Dady, CEO of IRIS Software Group, adds, “The acquisition of Octopus HR and formation of the new IRIS Human Capital Management division sits alongside the existing IRIS Accountancy division. This enables IRIS Software Group to further realise its strategic vision to connect accountants, businesses and their employees enabling them to efficiently manage their financial, compliance and human capital resource requirements to achieve success.

“From our client’s perspective, it’s business as usual. Customers will benefit from an extended portfolio of products, supported by the excellent levels of service they have come to expect.”