Risk management and compliance solutions provider Ncontracts made an acquisition today to help broaden its governance, risk, and compliance capabilities. The Tennessee-based company has bought third-party risk management program company Venminder.
Financial terms of the deal were not disclosed.
Kentucky-based Venminder offers a SaaS platform for third-party risk management that helps more than 1,200 customers manage their vendor relationships– from onboarding to offboarding. With Venminder, firms can manage vendors, track contract data, perform due diligence and oversight, send and score questionnaires, conduct risk assessments, systemically monitor risks across domains, order due diligence assessments on vendor controls, and more.
Ncontracts anticipates the purchase will offer it more depth and expertise in third-party risk management, and will enhance its position in the software-as-a-service (SaaS) and knowledge-as-a-service (KaaS) space.
“We are excited to join forces with Venminder,” said Michael Berman, Ncontracts Founder, and CEO. “With our teams coming together to help reduce risk, improve compliance and control costs, we will continue to strengthen the financial industry and the communities they serve.”
Also this week, Ncontracts, which demoed its technology at FinovateFall 2022, announced that investor Hg bought out prior Venminder shareholders as well as Ncontracts shareholder Gryphon Investors– which acquired Ncontracts in 2020. With its purchase, Hg will bring both resources and expertise.
“With the investment and support from Hg, we are well positioned to continue our rapid growth,” said Berman. “Gryphon has been a valuable partner, and I want to thank their outstanding team of operating partners, operating advisors, and investment professionals.”
Third-party risk management is a hotter topic than ever in today’s banking and fintech landscape, especially as the number of banks hit with consent orders rises due to regulatory breaches and compliance issues. With the increasing reliance on third-party vendors for technology, payment processing, and other services, the potential for vulnerabilities and risk has grown significantly.
Exacerbating the issue, regulatory bodies are tightening scrutiny on how banks manage their third-party relationships, ensuring that banks maintain strict oversight, due diligence, and risk mitigation strategies to safeguard sensitive data and operational resilience.
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The recent acquisition of Venminder by Ncontracts signals a significant move in the world of governance, risk, and compliance services. By integrating the third-party risk management SaaS platform of Venminder, Ncontracts aims to enhance its offerings and strengthen its foothold in the SaaS and KaaS markets.
The purchase signifies a strategic decision to consolidate expertise and resources in the realm of risk management, particularly in the context of third-party relationships. As regulatory requirements evolve and the need for robust risk mitigation strategies increases, the combined forces of Ncontracts and Venminder are poised to make a meaningful impact on the financial industry.
With the support of Hg, the acquisition of Venminder’s previous shareholders, and the backing of Gryphon, Ncontracts is well-positioned for continued growth and innovation. The convergence of these entities highlights a shared commitment to driving excellence in risk management and compliance across the sector.
As the landscape of banking and fintech undergoes rapid transformation, the emphasis on third-party risk management has never been more pronounced. The acquisition of Venminder by Ncontracts underscores a proactive approach to addressing the challenges and opportunities presented by an increasingly interconnected financial ecosystem.
In conclusion, the union of Ncontracts and Venminder heralds a new chapter in the realm of compliance and risk management. By harnessing the complementary strengths of both entities, the combined organization is poised to deliver innovative solutions that set a new standard for excellence in the industry.
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