Nashville-based bank vendor and risk management company Ncontracts acquired third-party risk manager Venminder via a buyout of previous Ncontracts shareholder Gryphon Investors from software and service business investor Hg.
Terms of the acquisition have not been released. Ncontracts’ customer base is expected to grow to more than 5,000 customers through the acquisition.
According to Ncontracts, the acquisition increases its expertise and depth in third-party risk management, “further enhancing its position as a software-as-a-service and knowledge-as-a-service 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 software solutions for banks, credit unions, mortgage companies, fintechs and registered investment advisors, as they grapple with increased risks and regulatory scrutiny,” according to Ncontracts.
Venminder CEO James Hyde said the acquisition “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.”
Hg is backing Ncontracts Founder and CEO Michael Berman to lead the combined business.
St. Petersburg, Fla.-based Raymond James served as lead financial adviser to Gryphon, while Palo Alto, Cal.-based M&A advisor Atlas Technology Group also advised Gryphon. Chicago-based law firm Kirkland & Ellis was Gryphon’s legal advisor. Chicago-based investment bank William Blair was financial advisor to Venminder. Boston-based law firm Choate Hall & Stewart LLP was legal counsel to Venminder. New York City-based Goldman Sachs was financial adviser to Hg, while Los Angeles-based law firm Latham & Watkins was Hg’s legal advisor.
