Vista Equity Partners has acquired Regulatory DataCorp Inc., a provider of governance, risk and compliance software and services, from a group of owners headed by Bain Capital Ventures.
Regulatory DataCorp, based in King of Prussia, Pennsylvania, offers counterparty risk and financial regulatory compliance data, software and analysts, catering to financial institutions and technology companies. The company provides risk alerts and monitoring for its customers, and it has a regulatory information database with more than 7 million profiles with risk information. The company’s services are aimed at preventing financial crime: identifying banned or suspect entities, strengthening fraud and corruption protection, ensuring regulatory compliance, managing supply and distribution risk, protecting brands, offering emerging market intelligence, and screening and monitoring vendors.
According to Regulatory DataCorp, the governance, risk and compliance industry is growing, especially in the $10 billion financial crime market segment that is projected to grow 17 percent per year through 2020. Growth stems from financial institutions looking to improve their risk management while reducing regulatory non-compliance fines.
“More than ever before, companies are looking to harness the power of big data and analytics to provide them with the clarity and insight needed to prevent financial crimes, regulate risk and improve compliance,” says Rob Rogers, principal at Vista Equity Partners.
The growing cybersecurity threats have boosted interest in M&A for companies that provide protection through software and monitoring. The surge in cybersecurity deals has pushed overall technology deals to record levels in 2015 and the first half of 2016. Recent related deals have included Accenture (NYSE:CAN) acquiring Redcore consulting for identity, access management and security services to protect networks and online applications. Also, the Delta Risk LLC cybersecurity and risk management services provider, backed by the Chertoff Group, acquired Allied InfoSecurity consultant, and Thoma Bravo LLC private equity firm acquired Bomgar, which sells secure access software for computer systems and devices, from TA Associates.
Terms of the Vista Equity acquisition were not disclosed, and a spokesman for Regulatory DataCorp declined to identify the sellers other than Bain Capital Ventures. Vista Equity Partners, a private equity firm based in Austin, Texas, has more than $26 billion in cumulative capital commitments, targeting software, data and technology-based companies. Bain Capital Ventures, based in New York with more than $3 billion under management, invests in enterprise software, infrastructure software and data-related industries, and has launched and commercialized more than 200 companies since 1984