KKR Said in Advanced Talks on £3 Billion Deal for Iris Software

KKR & Co.is in advanced talks on a potential acquisition of Iris Software, in what would rank as the year’s biggest buyout of a private European software company, people with knowledge of the matter said.

The investment firm has pulled ahead of other bidders and is negotiating final terms of an agreement with Iris’ private equity owner Hg, the people said. A deal could value the UK firm at around £3 billion ($3.8 billion), according to the people, who asked not to be identified because the information is private.

Iris supplies software for the UK accounting, payroll, ...