Golub Capital Provides Financing for ELT’s EthicsPoint Acquisition
Golub Capital announced that as sole lead arranger and sole bookrunner it provided a $106 million GOLD financing and an equity co-investment in connection with the acquisition of EthicsPoint, Inc. by ELT Holding Company (ELT). ELT is a portfolio company of The Riverside Company. GOLD financings are Golub Capital’s One-Loan Debt facilities.
The acquisition of EthicsPoint follows Golub Capital’s December 2011 financing for ELT’s acquisition of Global Compliance Services, Inc. The combination of the three businesses creates a leading governance, risk and compliance (GRC) platform with significantly expanded capabilities and resources, a workforce of several hundred employees, a client base of nearly 6,500 organizations around the globe, and an unmatched commitment to quality and continual innovation.
“At a time when many global leaders and businesses are questioning the need for increased regulations, we are championing GRC,” said Loren Schlachet, managing partner with Riverside. “We believe that these tools, along with embracing good old-fashioned ethics, are actually the roots to creating lasting value for a business.”
The combined entity intends to deliver a comprehensive platform that provides clients with access to the best solutions to protect their organizations, enhance their workplace environments and drive better business results. Solutions include: Whistleblower hotlines, advanced case management, reporting and analytics, robust online training and awareness programs, expert advisory consulting, performance benchmarking, data privacy and third-party risk analysis.
“We are excited to support Riverside and its portfolio company, ELT, in its acquisitions of Global Compliance and EthicsPoint,” stated Andy Steuerman, senior managing director at Golub Capital. “The combined company represents an attractive leader in the GRC space and Riverside is the ideal sponsor to build this platform due to its expertise in software and business services.”
“We strongly believe in the GRC market,” said Joe Lee, principal with Riverside. “Our enthusiasm for investing in this combined entity is rooted in the understanding that customers are seeking more sophisticated solutions to their complex GRC challenges. We chose to partner with Golub Capital due to their incumbent lender status with Global Compliance, our comfort with their execution on prior Riverside transactions, and their ability to deliver a flexible financing solution in a timely manner.”
Golub Capital is a provider of financing solutions for the middle market, including one-loan financings, senior, second lien and subordinated debt, preferred stock and co-investment equity.
The Riverside Company is a private equity firm focused on acquiring growing businesses valued at up to $200 million.