Acquisitions to expand The Riverside Company‘s investment in the governance, risk and compliance industry
ELT Inc., EthicsPoint Inc., and Global Compliance Services Inc. announced their intent to merge, forming a leading player in the governance, risk and compliance (GRC) industry with the capacity to meet the expanding needs of customers all over the world. The merger is anticipated to close at the end of February, subject to customary approvals. Terms of the deal were not disclosed.
The combination of these complementary platforms will create a company with significantly expanded capabilities and resources, a workforce of several hundred employees, a client base of nearly 6,500 organizations around the globe and an unmatched commitment to quality and continual innovation.
“At a time when many global leaders and businesses are questioning the need for increased regulations, we are championing GRC,” said Loren Schlachet, Managing Partner with The Riverside Company. “We believe that these tools, along with embracing good old fashioned ethics, are actually the roots to creating lasting value for a business.”
Mark Reed, EthicsPoint, President & CEO, will assume the CEO position of the merged organizations. Shanti Atkins, ELT, President & CEO, will serve as the combined company’s President & Chief Strategy Officer. Jim Burke, Global Compliance, CEO, will serve on the company’s Board of Directors.
“This merger is truly a watershed event in the GRC industry, and I am energized to lead the combined company through this next phase of growth,” said Reed. “Collectively, the merged companies offer an unmatched level of experience and knowledge with a broad and complementary set of technology and content solutions to help global customers manage risk.”
Enterprise risk and compliance issues have become more complex and globalized. Greater regulation and enforcement is expected in the future, escalating litigation risk and an increasing focus on ethics and compliance.
Riverside invested in ELT in December 2010 and both organizations committed to the compliance and ethics industry further in December 2011 with the acquisition of Global Compliance Services. Separately, ELT and Riverside entered into a definitive purchase agreement to acquire EthicsPoint at the end of January 2012. The combined entity intends to deliver an industry-leading, comprehensive platform that provides clients with access to the best solutions to protect their organizations, enhance their workplace environments and drive better business results. Solutions include:
- whistleblower hotlines;
- advanced case management;
- reporting and analytics;
- robust online training and awareness programs;
- expert advisory consulting;
- performance benchmarking;
- data privacy; and
- third-party risk analysis.
“Global Compliance has helped to define the GRC industry since launching the first employee hotline 30 years ago,” said Jim Burke of Global Compliance. “Our new partners share our vision of integrated and comprehensive ethics and compliance solutions, and we look forward to working with them as we develop new solutions for clients in this fast-changing regulatory environment.”
“ELT and Riverside share a vision for building a world-class GRC company that will take the leading position in expert content, data-driven solutions and phenomenal learning experiences for our clients and their employees. I am very pleased we have been able to incorporate Global Compliance and EthicsPoint into that vision. We are fully committed to protecting employers, their people and the broader communities that surround them,” said Shanti Atkins of ELT.
Working with Schlachet on the transaction for Riverside were Joe Lee, Principal; Jeff Goodman, Operating Partner; Dan Haynes, Assistant Vice President; John McKernan, Senior Associate; Steve Rice, Associate, and Mary Anne McLaren, Finance Director. Riverside’s investments in Global Compliance Services and EthicsPoint were sourced by Amy Margolis, Regional Director – Origination and Scott Gilbertson, Principal – Origination, respectively.
