ComplySci Acquires NRS, An Advanced Provider Of Compliance And Regulatory Consulting, Education And Technology For Financial Services Companies

Rhea-AI Summary

ComplySci, a regulatory technology provider, has initiated its M&A growth strategy by acquiring National Regulatory Services (NRS), enhancing its compliance offerings for financial services. This strategic acquisition combines ComplySci's technology with NRS's expertise, growing their market presence. The transaction follows a $120 million investment from K1 Investment Management. NRS will operate as 'NRS, a ComplySci Company,' under President John Gebauer, aiming to deliver an integrated compliance solution. This move is expected to position ComplySci for significant growth and increased industry recognition.

Positive

• Acquisition of NRS expands ComplySci's compliance offerings.
• Combination of ComplySci's technology with NRS's expertise enhances service delivery.
• The $120 million investment allows for strategic growth and acquisitions.
• Collaboration expected to improve compliance solutions for clients.

Negative

• None.

NEW YORK, Oct. 21, 2021 /PRNewswire/ -- ComplySci (the "Company"), an established provider of regulatory technology and compliance solutions for the financial services sector, today announced the commencement of its M&A growth strategy, starting with the acquisition of National Regulatory Services (NRS), an advanced provider of compliance consulting services and technology solutions for investment advisers, broker-dealers, hedge funds, private equity firms, insurers and other financial services firms.

The transaction further strengthens and expands ComplySci's ability to support its financial services clients' compliance needs by combining its technology, which automates and streamlines mission-critical employee compliance functions, with NRS' longtime, hands-on expertise in helping clients navigate the ever-changing industry regulatory environment.

Moving forward, NRS – which was founded over three decades ago – will do business as NRS, a ComplySci Company, with John Gebauer continuing his role as President, NRS. NRS was formerly part of Accuity, a LexisNexis® Risk Solutions company and a part of RELX, the global provider of information-based analytics and decision tools for professional and business customers.

The acquisition of NRS reflects ComplySci's broader growth vision for broadening its service and product offerings through both organic expansion as well as multiple strategic acquisitions to become the go-to resource for compliance solutions for financial services companies.  It is ComplySci's first acquisition since receiving a $120 million growth equity investment from K1 Investment Management, the global private equity firm, in June.

ComplySci CEO Amy Kadomatsu said, "When we received our recent equity growth investment of $120 million just over three months ago, we were excited to leverage the capital to add fuel to our growth through acquisitions as well as investments in our products and services. Our acquisition of NRS creates a truly differentiated offering of technology-driven, automated RegTech capabilities, combined with NRS' hands-on personal compliance guidance based on 30-plus years of experience, insight and technical understanding."

Ms. Kadomatsu continued, "We've actually been working closely with NRS for years referring clients to each other to complement our respective capabilities. There's no doubt that ComplySci's clients will benefit enormously from the NRS team's expertise, consulting services, educational programs and ComplianceGuardian™ technology, while NRS' current clients will benefit from an end-to-end compliance management solution with a single point of contact. Technology solutions are so much more powerful when coupled with experts who provide personal guidance to help clients utilize it most effectively within their business. This acquisition positions ComplySci to reach new levels of growth and industry recognition."

Founded in 1984, NRS supports small- and mid-size RIAs and investment adviser firms with offerings in the following areas.

• Consulting: NRS provides customized, practical reviews and guidance that firms can leverage to evaluate and strengthen their compliance programs. Its collaborative approach prescribes clear actions that firms can take, rather than simply identifying deficiencies.
• Technology: The ComplianceGuardian platform provides firms the tools they need to stand up and manage their compliance programs. It provides model policy and procedure and other document templates, expert guides and checklists, an annual review management tool and more.
• Education: NRS co-sponsors the Investment Adviser Certified Compliance Professional program, one of the only designations for investment adviser compliance professionals in the financial services industry. It also offers numerous continuing education and networking opportunities for compliance professionals.

Mr. Gebauer said, "Long before any strategic discussions started, we were deeply familiar with ComplySci's differentiated value proposition, and when the opportunity to join them arose, it made sense, both from a strategic perspective and in terms of enhancing our ability to offer our clients a holistic package of compliance-management solutions and services. We are thrilled to collaborate with Amy and the entire ComplySci organization as we move forward together as one firm, leveraging the combined power of our two business models."

ComplySci board member Stephen Marsh, Chairman and Founder of the electronic communications archiving provider Smarsh, said, "I have a long history with both organizations, and I am thrilled to be working with John Gebauer and his NRS team again. The incredible growth potential that the combination of these two organizations will bring is exciting. With the acquisition of NRS, ComplySci will enhance their already robust suite of compliance solutions and continue to evolve as the provider of choice for automated regulatory and compliance solutions in the financial services space."

About ComplySci
ComplySci is a leading provider of regulatory technology solutions that help compliance organizations identify, monitor, manage and report on conflicts of interest arising from employee activities, including personal trading, gifts and entertainment, political contributions, outside business affiliations, and other code of ethics violations. We believe advanced compliance technology empowers compliance professionals to transform their business and elevate the role of compliance in their firm. More than 1,400 customers, including some of the world's largest financial institutions, rely on ComplySci's scalable and sophisticated platform to stay ahead of risk and unlock the strategic potential of their compliance data. Learn more at complysci.com.

About NRS
National Regulatory Services (NRS) is an advanced provider of compliance and registration products and services for investment advisers, broker-dealers, hedge funds, investment companies and insurance institutions. NRS has the practical expertise, proven capability, and impressive reach to deliver integrated and effective compliance solutions to a wide range of users within the financial services industry. NRS delivers these solutions through three interrelated offerings – comprehensive education, outstanding technology, and expert consulting services – enabling our clients to meet their regulatory requirements and minimize risk.

About LexisNexis Risk Solutions 
LexisNexis® Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX, a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit www.risk.lexisnexis.com and www.relx.com.

About K1
K1 is a global investment firm that builds category-leading enterprise software companies. K1 partners with strong management teams of high-growth technology businesses to help them achieve successful outcomes. With over 110 professionals, K1 and its operating affiliate, K1 Operations LLC, change industry landscapes with operationally-focused growth strategies designed to rapidly scale portfolio companies. Since inception of the firm, K1 has partnered with over 160 enterprise software companies including industry leaders such as Apttus, Buildium, Checkmarx, Clarizen, ControlUp, Emburse, FMG Suite, Granicus, IronScales, Litera Microsystems, Onit, Rave Mobile Safety, RFPIO, Smarsh, WorkForce Software and Zapproved. For more information, visit k1capital.com and follow on LinkedIn.

Media Inquiries

Joseph Kuo / Andrew Wang
Haven Tower Group
424 317 4851 or 424 317 4859
awang@haventower.com or jkuo@haventower.com

View original content:https://www.prnewswire.com/news-releases/complysci-acquires-nrs-an-advanced-provider-of-compliance-and-regulatory-consulting-education-and-technology-for-financial-services-companies-301405266.html

SOURCE ComplySci

FAQ

What is the significance of ComplySci's acquisition of NRS?

The acquisition enhances ComplySci's compliance solutions, integrating advanced technology with NRS's consulting expertise.

How much did ComplySci invest in the acquisition of NRS?

The acquisition follows a $120 million growth equity investment from K1 Investment Management.

When was the acquisition of NRS announced?

The acquisition was announced on October 21, 2021.

What will NRS be known as after the acquisition?

NRS will operate as 'NRS, a ComplySci Company'.

Who is the president of NRS after the acquisition?

John Gebauer continues as President of NRS post-acquisition.