Thoma Bravo is preparing to put Riskonnect on the block after a three-year hold, sources familiar with the process told PE Hub.
The firm has hired UBS Group to advise Riskonnect on its sale process, which is expected to launch in Q1 2021, the people said.
Riskonnect, based in Kennesaw, Georgia, is a cloud-based risk management solution that provides an integrated platform for compliance management, business continuity management, enterprise risk management and audit management.
Riskonnect’s risk management information system (RMIS) enables risk professionals to identify threats and take corrective actions. The solution also automates various repetitive and time-consuming manual tasks.
The company generates between $115 million and $135 million in revenue and between $20 million and $40 million in EBITDA.
Thoma Bravo invested in Riskonnect in June 2017 out of its debut Discover Fund, which closed in February 2016 on $1 billion. The Discover Fund enables Thoma Bravo to expand its investment reach by focusing on growth-oriented technology companies in the lower mid-market.
Since Thoma Bravo’s investment, Riskonnect grew through several add-ons.
In 2018, Riskonnect acquired Marsh ClearSight, a cloud-based software platform that serves the needs of risk management professionals, insurance carriers and third-party administrators.
In March of 2020, Riskonnect also acquired Xactium, a UK-based GRC software provider that evaluates and manages enterprise risk and compliance.
Overall, the compliance space has seen significant PE interest and activity in 2020.
Last month, PE Hub reported that growth equity firm Bregal Sagemount was exploring the sale of management software provider Steele Compliance.
In August, TA Associates invested in Hg-backed Sovos Compliance, valuing the company between $2.5 billion and $3 billion, sources told PE Hub at the time.
Around the same time, Clearlake Capital acquired Diligent Corporation, a global software governance company, from Insight Partners.
Thoma Bravo and Riskonnect declined to comment. UBS did not return PE Hub‘s request for comment.