ComplySci, which provides regulatory technology and compliance solutions for the financial services sector, has acquired RIA in a Box, a provider of compliance, cybersecurity and operational software solutions to the wealth management industry.
The combination will enable the firm to offer enhanced software, service, data and consulting to a broader audience of financial services organizations, including hedge funds, private equity firms, broker dealers, registered investment advisers and other wealth management firms, the two firms said.
“This acquisition is transformative and creates a compliance powerhouse,” ComplySci CEO Amy Kadomatsu said in an interview.
“From the beginning our focus has been on providing end-to-end compliance for independent advisors. Our partnership with other institutions is a way to provide better problem-solving solutions and value to our clients,” Will Bressman, CEO of RIA in a Box, added in an interview.
“The change this presents is that we will be able to accomplish our missions in an even better manner,” Bressman said.
Kadomatsu said that the acquisition will better enable the new firm “to solve our clients’ challenges.”
The acquisition, the terms of which were not disclosed, is ComplySci's third in the fourth quarter. It creates a firm that can provide governance, risk and compliance services, as well as consulting, technology, managed services, analytics and outsourcing solutions for the financial services industry, the companies said. The combined organization has more than 300 employees handling the compliance process for more than 7,000 customers.
RIA in a Box, which is headquartered in New York City, will continue to operate under its own name under the leadership of Bressman, who will serve as president of the combined organizations and work directly with Kadomatsu to execute future growth strategies, the companies said. RIA in a Box customers will continue to utilize RIA in a Box's MyRIACompliance platform and will be supported by their existing RIA in a Box team members.
"ComplySci and RIA in a Box share a common goal—to redefine how financial services firms manage their compliance programs. Combined with ComplySci's sophisticated employee compliance solutions, we deliver an exceptional offering that not only mitigates risk, but also elevates the role of compliance and enables smarter business decisions,” Kadomatsu said in a statement.
The acquisition of RIA in a Box continues the recent growth surge for ComplySci, Kadomatsu said. RIA in a Box also has experienced rapid growth, tripling its revenue and expanding solutions to include compliance, cybersecurity and operational tools for the wealth management industry.
ComplySci, which is based in New York CIty, recently received an investment from K1 Investment Management, a global private equity firm focused on high growth enterprise software companies.
Roy Liao, principal at K1 Investment Management, said in a statement, "The ability to efficiently manage compliance, cybersecurity and operational business issues is critical for financial services firms, making the RIA in a Box and ComplySci software-as-a-service SaaS platforms more relevant than ever.”