Risk management and compliance software company Galvanize is set to be acquired by Diligent Corporation, a corporate governance software company based out of New York. The acquisition is for a reported $1 billion USD.
The deal was announced Wednesday, and while Diligent did not disclose the terms of the transaction, Fortune reported the company is set to buy Galvanize for $1 billion.
“Joining forces with Diligent…represents an immediate, material and meaningful redefinition of the $41 billion GRC market.”
Through the acquisition, Diligent is looking to become the largest global governance risk management and compliance (GRC) software company. The move is part of a broader play by Diligent to bring together large players in the GRC space as the company also recently announced plans to acquire San Francisco-based Steele Compliance. Diligent stated that the two deals unites GRC leaders and creates the only modern GRC SaaS platform for the boardroom.
Galvanize has been operating in the GRC space for more than 30 years. It touts itself as the leading provider of cloud-based security, risk management, compliance, and audit software for some of the largest corporations in the world, including over half of the Fortune 1,000 and S&P 500 companies. Its more than 6,000 global customers include Coco-Cola, Oregon Secretary of State, Siemens, and Sony.
The company’s software platform provides visibility into risk, helps to demonstrate compliance and grow audit, risk, and compliance programs. Galvanize’s flagship cloud-based platform, HighBond, aggregates risk and compliance concerns for top-level organization strategies, providing real-time metrics to the C-Suite and board.
Diligent’s plan for the acquisition of Galvanize is to enhance its own governance platform using Galvanize’s 11 integrated risk and compliance solutions.
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“This transaction fast forwards our vision as the operating system of conscious organizations and furthers our mission to make GRC today’s mission-critical enterprise platform,” said Laurie Schultz, president and CEO of Galvanize. “Joining forces with Diligent, the clear market leader in the governance space, represents an immediate, material and meaningful redefinition of the $41 billion GRC market. With Diligent’s presence in thousands of boardrooms across the globe, our combined offering ensures all levels of an organization will have the real-time insight they need to manage risk and optimize performance.”
Galvanize employs more than 400 people around the world, with more than half out of its Vancouver office. According to Business in Vancouver, all Galvanize’s employees including the leadership team are set to remain on following the deal.
Diligent’s acquisitions of Galvanize and Steele Compliance are reportedly set to total more than $1.325 billion, bringing the New York company’s worth to more than $7 billion, according to Fortune. Both transactions are expected to close in March.