Cork-based Compliance & Risks is expected to create up to 100 jobs over the next two years after receiving a multimillion euro investment.
No financial details of the investment have been publicly disclosed but Silicon Valley-headquartered Luminate Capital Partners is believed to have taken full ownership of the business, buying out shareholders that include founder Damien McGovern.
Established in 2002, Compliance & Risks helps manufacturers, retailers and their supply chain partners monitor and manage requirements, regulations and standards. Its software-as-a-service (SaaS) database of legislative information, helps clients bring products to markets faster with lower risk and on-going compliance. Customers include Bose, Tesla, Vaillant, Unisys, Samsung and Fujitsu.
Sources close to the deal said the investment is expected to more than double staff count with the creation of between 70-100 new jobs at the business. The company currently employs about 110 people.
"This investment, combined with Luminate's track record of scaling SaaS companies will help us extend our market leadership, building upon our category defining technology and deep international product regulatory knowledge and market access expertise. We have a very exciting future ahead of us," said Joe Skulski, chief executive, Compliance & Risks.
The company, which derives most of its revenues from outside of the Republic, recorded turnover of €11.2 million last year with pretax profits of €1.65 million. This compares to €9.35 million in sales and a €1.78 million loss in 2019.
San Francisco-based Luminate Capital was founded by former Silver Lake Partners managing director Hollie Moore Haynes in 2017. The private equity firm is focused on buying midmarket software companies – typically with between $10 million to $50 million in annual revenues. Its portfolio includes Axonify and Comply365.
Oversuscribed
The firm last month closes its third fund with $1 billion of committed capital. The oversubscribed fund closed at its hard cap and above its $700 million target, bringing the firm’s total assets under management to $1.7 billion.
"Today's enterprises are faced with a vast, rapidly evolving and complex range of regulatory requirements and the operational challenge of maintaining global product compliance continues to increase," said Dave Ulrich, partner at Luminate. "Compliance & Risks has the most comprehensive and effective solution addressing this key problem."
Focus Capital Partners provided M&A advisory services to the shareholders of Compliance & Risks and legal advice was provided by RDJ and Nixon Peabody.
McCann Fitzgerald and Kirkland & Ellis provided legal advice to Luminate.
