Gryphon Investors (“Gryphon”), a San Francisco-based middle-market private equity firm, announced today that it has acquired Ncontracts (or the “Company”), a leading provider of integrated risk management software and services for the financial services industry. The deal marks Gryphon’s second investment in Governance, Risk, and Compliance (“GRC”) enterprise software solutions, following the firm’s December 2018 investment in RegEd, also a provider of GRC solutions for the financial services industry.
Ncontracts was founded by CEO Michael Berman in 2009 to offer enterprise risk management software tailor-made for the financial services industry. The Company’s expanded product line now includes a comprehensive set of risk management tools encompassing compliance, vendor management, and enterprise risk management. Based in Nashville, Tennessee, Ncontracts has more than 1,300 customers across the United States, and in 2019 was named to the Inc. 5000, Inc. Magazine’s annual listing of America’s fastest-growing private companies.
As part of the transaction, three Gryphon executives will join the Ncontracts Board of Directors – Nick Orum, President and Co-Head of the Software Group; Carl Theobald, Software Operating Partner; and Jon Cheek, Software Principal. Mr. Berman will remain CEO of the Company.
“The risks facing financial institutions are multiplying and becoming more complex, and no bank, regardless of size, can justify using spreadsheets today to manage the process when the stakes are so high,” said Mr. Cheek. “Ncontracts’ software has made it easy for financial institutions of all sizes to manage the spectrum of complex risks and regulations facing them today.”
“While Ncontracts has experienced tremendous growth over the last few years, there are still opportunities for expansion across this fragmented market,” said Mr. Berman. “With Gryphon’s resources and leadership, we are confident that we can continue to increase our market share, and we are excited to embark upon a strong partnership.”
“We were attracted to Ncontracts’ long history of success in delivering high-value and high-quality solutions for the financial services industry,” added Mr. Orum at Gryphon. “We look forward to working with Michael and the Ncontracts management team as they continue to invest in their business for the benefit of customers, employees, and shareholders.”
Raymond James acted as financial advisor to Gryphon, and Atlas Technology Group was the financial advisor to Ncontracts. Kirkland & Ellis acted as legal advisor to Gryphon, and Choate Hall & Stewart acted as legal advisor to Ncontracts. Terms of the deal were not disclosed.
Ncontracts provides risk, vendor, and compliance management software to a rapidly expanding customer base of more than 1,300 financial institutions located in all 50 states and U.S. territories. The company’s powerful combination of software and services enables financial institutions to achieve their risk management and compliance goals with an integrated, user-friendly cloud-based solution suite that encompasses vendor risk, compliance risk, and enterprise risk management. For more information, please visit www.ncontracts.com.
About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management. The firm has managed over $5.0 billion of equity investments and capital since 1997. Gryphon targets making equity investments of $100 million to $300 million in portfolio companies with enterprise values ranging from approximately $100 million to $500 million. Gryphon prioritizes investment opportunities where it can form strong partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, specialized professional resources, and operational expertise.