Daily News: June 26, 2012

Golub, Others Ink Financing for Riverside, NAVEX Acquisition


Recognizing the growing need to combine ethics and compliance functions into a unified, strategic program, leaders from ELT, Inc., EthicsPoint, Inc. and Global Compliance Services, Inc. announced their newly established brand, NAVEX Global. On the heels of launching the brand, NAVEX Global and private equity firm, The Riverside Company, also announced the acquisition of Policy Technologies International, Inc., a provider of policy and procedure management software.

Golub Capital, NXT Capital and LBC Credit Partners provided the financing for the acquisition.

“As organizations seek to consolidate governance, risk and compliance (GRC) processes to address complex enterprise risks, NAVEX Global brings together the best ethics and compliance offerings of four organizations into a unified platform to support our clients,” said Mark Reed, CEO of NAVEX Global. “I am extremely proud of and inspired by the passion, expertise, depth of talent and quality of solutions that we have harnessed under the NAVEX Global brand to serve national and multinational organizations.”

Under the new brand, NAVEX Global will equip clients to protect their organizations from adverse risks, enhance their corporate cultures and employee relations, and safeguard their brand equity and shareholder value.

The most recent addition of PolicyTech addresses a key pain point in GRC management by providing clients with robust and user-friendly technology to manage policies and procedures. PolicyTech’s offerings help clients automate their processes to increase operational efficiency and policy awareness.

“We are excited to bring together four leading companies to offer organizations a strategic offering of GRC services in response to the ever-increasing regulatory environment,” said Loren Schlachet, managing partner with The Riverside Company. “We have a deep commitment to the GRC industry as we understand that trust in organizations has a positive effect on shareholder value. We are proud to see NAVEX Global grow at an intense pace both organically and through add-on acquisitions.”

Working with Schlachet on the transaction for Riverside were Joe Lee, principal; Dan Haynes, AVP; Steve Rice, associate, Jeff Goodman, operating partner and Mary Anne McLaren, finance director. Riverside’s investment in PolicyTech was sourced by Scott Gilbertson, principal – Origination.

Jones Day provided Riverside with legal counsel on the transaction, while Deloitte advised on the financial diligence. Corum Group represented PolicyTech on the sale, and TripleTree advised Riverside on the investment.