Thoma Bravo has agreed to acquire Riskonnect, a provider of integrated risk management technology solutions. No financial terms were disclosed. The deal is expected to close by the end of the second quarter of this year. Financial Technology Partners LP and FTP Securities LLC served as financial and strategic adviser to Riskonnect while Kirkland & Ellis advised Thoma Bravo.
KENNESAW, GA and SAN FRANCISO, CA – June 7, 2017 – Thoma Bravo LLC, a leading technology investment firm, announced today that it has entered into an agreement to acquire Riskonnect, Inc., the leading global provider of Integrated Risk Management technology solutions. The investment recognizes Riskonnect’s strong momentum and is expected to help the rapidly growing company expand and broaden its software platform. As part of the agreement, the company’s three founders will retain a significant minority stake in the business.
Riskonnect’s Integrated Risk Management platform gives companies a holistic view of the various risk factors they face, along with mitigants, costs and impact for those risks. Through a unified, highly configurable set of modules, the company provides the tools and business intelligence needed to reduce losses, control risk, manage key stakeholder relationships and increase shareholder value. Riskonnect’s solutions allow users from organizations of any size to easily review, analyze and report on data from web-based interfaces—all within a single point of access platform.
Since its founding in 2007, Riskonnect has seen remarkable growth and now has more than 250 enterprise customers across virtually all industries. Thoma Bravo’s investment is expected to better position the company to accelerate investments in its Integrated Risk Management platform and take advantage of the converging use cases across traditional Risk Management, Governance, Risk and Compliance (GRC), and Environmental, Health and Safety (EHS) functionalities.
“With its strong portfolio of products, Riskonnect is the clear market leader in providing large enterprises the ability to manage risk holistically,” said Hudson Smith, a Partner at Thoma Bravo. “We look forward to working with the highly talented team at Riskonnect to invest further into newer opportunities including growing the company’s footprint across the GRC and EHS sectors.”
As part of the transaction, Riskonnect’s co-founder and CEO Bob Morrell will transition to an advisory role with the company’s Board of Directors, and Jim Foster, the company’s President and COO, will become CEO.
“I’m honored to be leading a company that has benefitted from the remarkable insight, innovation and institutional knowledge of its founding team,” said Jim Foster. “Our partnership with Thoma Bravo gives us the capital and expertise needed to continue growing our company, expanding our product suite, and delivering a truly comprehensive integrated risk management solution to global organizations.”
“We started Riskonnect with the key goal of understanding risk holistically, across the entire enterprise. We have achieved so much and could not be more excited to continue building out a platform which helps our customers manage increasingly complex regulatory and compliance environments,” said Bob Morrell. “I look forward to actively supporting Jim, Thoma Bravo and the Riskonnect team to more fully realize our founding vision of helping great companies manage great challenges.”
“We are highly excited to invest alongside Bob and the founding team to propel the company into its next stage of growth,” said AJ Jangalapalli, a Vice President at Thoma Bravo. “For the last decade, Riskonnect has defined how companies measure and reduce their Total Cost of Risk and we look forward to further innovating on this increasingly mission-critical concern.”
The acquisition of Riskonnect was made through Thoma Bravo’s Discover Fund, which debuted in early 2016. The Discover Fund enables Thoma Bravo to expand its investment reach by focusing on growth-oriented technology companies in the lower middle market. Previous Discover Fund investments include Bomgar, a cybersecurity provider; Elemica, a supply chain operating network; Infogix, an analytics company; and T2 Systems, a parking management software firm.
The transaction is expected to close by the end of the second quarter of 2017. Financial details were not disclosed. Financial Technology Partners LP and FTP Securities LLC (collectively, “FT Partners”), served as exclusive financial and strategic advisor to Riskonnect, and Dentons acted as Riskonnect’s legal advisor. Thoma Bravo was advised by Kirkland & Ellis.
About Thoma Bravo, LLC
Thoma Bravo is a leading private equity firm focused on the software and technology-enabled services sectors. With a series of funds representing more than $17 billion in capital commitments, Thoma Bravo partners with a company’s management team to implement operating best practices, invest in growth initiatives and make accretive acquisitions intended to accelerate revenue and earnings, with the goal of increasing the value of the business. Representative past and present portfolio companies include industry leaders such as Blue Coat Systems, Deltek, Digital Insight, Global Healthcare Exchange, Hyland Software, PowerPlan, Qlik, Riverbed, SailPoint, SolarWinds, SonicWall, Sparta Systems and TravelClick. The firm has offices in San Francisco and Chicago. For more information, visit www.thomabravo.com.
Riskonnect is the trusted, preferred source of Integrated Risk Management technology, offering a growing suite of solutions on a world-class cloud computing model that enables organizations to anticipate and manage strategic and operational risks across the enterprise.