New investments from Blackstone Group and Clearlake Capital have brought Diligent’s valuation to roughly $4 billion, sources familiar with the deal terms told PE Hub.
The transaction leaves existing investors Clearlake and Insight Partners with nearly equal stakes in the company, the people said. Prior to the transaction, Clearlake held a minority stake in the company, while Insight was the majority shareholder. Now, Clearlake’s stake is close in size to Insight’s majority position.
Boosting its stake, Clearlake injected an additional $500 million in the company, the sources said. Blackstone Tactical Opportunities also joined as a minority investor in the governance software company, they said.
The Wall Street Journal first reported the deal’s valuation and structure on Aug. 4. PE Hub first wrote in February that Insight was exploring options for Diligent, with a process anticipated to bring the target’s valuation to $4 billion.
Diligent, headquartered in New York City, provides secure governance and collaboration technology for boards and senior executives. The company offers secure access to time-sensitive and confidential information and aims to improve the way board materials are produced, delivered and collaborated across any device. It services more than 700,000 executives worldwide.
The company employs over 1,000 people, according to the company.
Diligent was projected to produce nearly $180 million in 2020 EBITDA, sources told PE Hub in February. The company generated $325 million in revenue in 2019, they said.
UBS provided financial advice to Insight. PJT Partners served as financial advisor to Blackstone.
Insight took Diligent private in April 2016 for $624 million, according to the company’s announcement at the time.
Clearlake took a minority position in the company in February 2018.
Blackstone, Clearlake and Diligent declined to comment. Insight did not return PE Hub’s requests for comment before press time.
Action Item: View Insight Partners’ recent form ADV.
Update: The story has been updated with the new figure for the number of employees at Diligent and with a new figure for executives using the company’s services.