Ncontracts, a leading provider of integrated compliance, risk,
and vendor management solutions to the financial services industry,
announced today that it has acquired Venminder, a unified platform
for managing third-party risk.
BRENTWOOD, Tenn., Sept. 4, 2024 /PRNewswire-PRWeb/ -- Ncontracts, a
leading provider of integrated compliance, risk, and vendor
management solutions to the financial services industry, announced
today that it has acquired Venminder, a unified platform for
managing third-party risk.
With our teams coming together to help
reduce risk, improve compliance and control costs, we will continue
to strengthen the financial industry and the communities they
serve.
Simultaneously with this transaction, Hg has bought out prior
Ncontracts shareholder Gryphon Investors ("Gryphon"), as well as
prior Venminder shareholders. Hg is a leading investor in software
and services businesses and is backing Founder and CEO,
Michael Berman, to lead the combined
business, which promises to deliver more value to customers via
these expanded capabilities.
Acquiring Venminder gives Ncontracts more depth and expertise in
third-party risk management, further enhancing its position as a
software-as-a-service (SaaS) and knowledge-as-a-service (KaaS)
leader in enterprise risk management. The investment from Hg brings
resources and expertise, continuing to strengthen Ncontracts as a
leader in governance, risk and compliance ("GRC") software
solutions for banks, credit unions, mortgage companies, fintechs
and registered investment advisors, as they grapple with increased
risks and regulatory scrutiny.
"We are excited to join forces with Venminder," said
Michael Berman, Ncontracts Founder
and CEO. "With our teams coming together to help reduce risk,
improve compliance and control costs, we will continue to
strengthen the financial industry and the communities they serve.
With the investment and support from Hg, we are well positioned to
continue our rapid growth. Gryphon has been a valuable partner, and
I want to thank their outstanding team of operating partners,
operating advisors and investment professionals."
"Uniting Venminder and Ncontracts will bring tremendous value to
our customers," stated James Hyde,
Venminder's CEO. "This strategic partnership extends beyond
third-party risk management, propelling Venminder into the broader
integrated risk and compliance space. By combining our strengths,
we are poised to deliver even more comprehensive and innovative
solutions to our clients and the broader market. Our unwavering
commitment is to continue to support our clients by guiding them
through the complex landscape of third-party risk."
Ncontracts has been named in the prestigious Inc. 5000 list of
fastest growing private companies in America for the sixth
consecutive year in 2024. This transaction will grow Ncontracts'
customer base further to over 5,000 customers. The investment and
acquisition demonstrate Ncontracts' commitment to continued growth
from both an organic and inorganic perspective.
Alan Cline, Head of North America at Hg, said: "We see Ncontracts
swiftly becoming a 'gold standard' provider of highly automated,
AI-enabled, integrated software solutions for the financial
industry. The merger with Venminder creates a compelling platform
with a comprehensive product suite that can deliver significant
value to customers."
Alexander Johnson, a Director at
Hg added: "We're excited to partner with Michael Berman as he continues to lead and scale
the company for its next stage of growth."
Jon Cheek, Partner & Co-Head
of the Software Group at Gryphon, said: "We are delighted to have
completed a complex transaction that significantly transforms
Ncontracts and positions it to continue to thrive. Through a
combination of organic and inorganic growth strategies, Ncontracts
has more than quadrupled in size since Gryphon originally invested
in 2020. With its comprehensive suite of products meeting the
continued demand for sophisticated financial services governance,
risk and compliance management tools, the company is poised to
continue that aggressive growth going forward."
Gryphon sees continued attractive opportunity for new platform
investments in the GRC sector and retains its investment in
separate portfolio company RegEd, a leading provider of enterprise
regulatory compliance solutions to insurance companies and
financial services firms.
Terms of the acquisition were not disclosed.
Raymond James served as the lead
financial advisor to Gryphon, with Atlas Technology Group also
advising Gryphon; Kirkland & Ellis acted as Gryphon's legal
advisor. William Blair served as
exclusive financial advisor to Venminder. Choate Hall & Stewart, LLP served as legal
counsel to Venminder. Goldman Sachs served as financial advisor to
Hg; Latham & Watkins served as Hg's legal advisor.
For more information, please contact:
Ncontracts: Shawn McKee shawn.mckee@ncontracts.com
Venminder: Deirdre Grubbs
media@venminder.com
Hg: Tom Eckersley tom.eckersley@hgcapital.com
Gryphon Investors: Caroline Luz cluz@lambert.com
About Ncontracts
Ncontracts provides integrated risk, vendor and compliance
management software to a rapidly expanding customer base of over
4,000 financial institutions, mortgage companies, and fintech
companies in the United States.
The company's powerful combination of software and services enables
financial institutions to achieve their risk management and
compliance goals with an integrated, user-friendly cloud-based
solution suite encompassing vendor, organizational, audit, and
compliance risk management. Visit http://www.ncontracts.com or
follow the company on LinkedIn and Twitter for more
information.
About Venminder
Venminder is the leading provider offering a unified SaaS platform
for third-party risk management. The platform is used by more than
1,200 customers to manage the entire vendor lifecycle, from
onboarding to offboarding, with ease and efficiency. Venminder
combines technology and human expertise to enable customers to
manage vendors, track contract data, perform due diligence and
oversight, send and score questionnaires, conduct risk assessments,
systemically monitor risks across domains, order due diligence
assessments on vendor controls, and much more. Venminder also
powers Third Party ThinkTank, the largest online community
dedicated to the practice of third-party risk.
About Hg
Hg supports the building of sector-leading enterprises that supply
businesses with critical software applications or workflow
services, delivering a more automated workplace for their
customers. This industry is characterized by digitization trends
that are in early stages of adoption and are set to transform the
workplace for professionals over decades to come. Hg's support
combines deep end-market knowledge with world class operational
resources, together providing compelling support to entrepreneurial
leaders looking to scale their business – businesses that are well
invested, enduring and serve their customers well. With a vast
European network and strong presence across North America, Hg's 400 employees and
$70 billion in funds under management
support a portfolio of more than 50 businesses, worth over
$150 billion aggregate enterprise
value, with over 110,000 employees, consistently growing revenues
at more than 20%.
About Gryphon Investors
Gryphon Investors (http://www.gryphoninvestors.com) is a leading
middle-market private equity firm focused on profitably growing and
competitively advantaged companies in the Business Services,
Consumer, Healthcare, Industrial Growth, and Software sectors. With
approximately $9 billion of assets
under management, Gryphon prioritizes investments in which it can
form strong partnerships with founders, owners, and executives to
accelerate the building of leading companies and generate enduring
value through its integrated deal and operations business model.
Gryphon's highly-differentiated model integrates its well-proven
Operations Resources Group, which is led by full-time, Gryphon
senior operating executives with general management, human capital
acquisition and development, treasury, finance, and accounting
expertise. Gryphon's three core investment strategies include its
Flagship, Heritage, and Junior Capital strategies, each with
dedicated funds of capital. The Flagship and Heritage strategies
target equity investments of $50
million to $350 million per
portfolio company. The Junior Capital strategy targets investments
in junior securities of credit facilities, arranged by leading
middle-market lenders, in both Gryphon-controlled companies, as
well as in other private equity-backed companies operating in
Gryphon's targeted investment sectors.
Media Contact
Deirdre Grubbs, Venminder, (888)
836-6463, media@venminder.com, www.venminder.com
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SOURCE Venminder