Diligent’s acquisition of governance, risk and compliance software provider Galvanize brings the combined company’s post-transaction valuation to $7 billion, a source familiar with deal terms told PE Hub.
With the acquisition, Diligent – backed by Clearlake Capital, Insight Partners and Blackstone Group – will become the country’s largest SaaS GRC provider, with a combined revenue of $550 million, the person familiar said. Diligent, a provider of secure governance and collaboration technology for boards and senior executives, is acquiring Galvanize from minority investor Norwest Venture Partners and majority owner Harald Will, executive chairman and the son of the company’s founder Hartmut Will.
The pending acquisition values Galvanize at $1 billion, the person familiar told PE Hub.
Galvanize follows Diligent’s planned acquisition of Steele Compliance Solutions, a provider of ethics and compliance SaaS it agreed to buy in earlier in February. Both the Steele and Galvanize transactions are expected to close in March, according to the press release shared Wednesday.
The combined solution with enrichment from Steele will enable an integrated GRC picture – from audit, risk, information security, ethics and compliance across the organization directly to the CEO, CFO and board, the company said.
Diligent plans to enhance its modern governance platform with Galvanize’s 11 integrated risk and compliance solutions, bringing new insights to its leading board and leadership application and operational governance solutions.
Galvanize, which hit an auction block roughly a month ago, received a “tremendous amount of interest” from both sponsors and strategics before the official sale process even had a chance to kick off, sources familiar with the situation told PE Hub late January.
Sources previously told PE Hub that Galvanize was generating more than $100 million in revenue and roughly $20 million in EBITDA
In November, PE Hub wrote that the sale process for Steele Compliance was expected to kick off during the fourth quarter of 2020. Commenting on that sale process in November, one source told PE Hub that Steele was seeing “a ton of interest” and has been “top of mind” among some financial sponsors for a while.