GRC stands for governance, risk and compliance—three terms that have only increased in meaning for companies of all sizes, but particularly in regulated markets such as financial services. As a result, the GRC software and services solutions market has only grown. In turn, so has M&A and growth activity for the companies providing these solutions.

On April 5, risk management and technology solutions provider ACA Compliance Group made such a move, announcing it was acquiring London-based GRC services provider Cordium. The acquisition, ACA said in a release, will expand the company's services in Europe and provide a post-Brexit EU office.

Financial terms of the deal were not announced. According to ACA, the combined company will employ nearly 700 people in multiple countries and service over 4,000 clients worldwide.

Speaking with LTN via email after the announcement, ACA's founder and partner Jeff Morton said that the move was not motivated by upcoming regulatory changes such as Brexit and the General Data Protection Regulation (GDPR), but rather a natural expansion of ACA's business to an area previously underserved, with a company in Cordium that had complementary offerings.

“As with all transactions of this kind, discussions have been underway for some time,” Morton said. “That careful process has confirmed what we first thought: that the synergies between these two companies are strong, and that this deal will be positive for clients and employees globally.”

He added that until the completion of the transaction, ACA and Cordium will operate independently as normal. He did not note any specific changes customers and employees are likely to see down the road, but did say that he expects customers to experience “the quality of service and expertise they already have with Cordium, but with added breadth and depth brought by ACA.”

“Both companies have proven track records in M&A and business integration, and we believe the cultures and day to day operations of both firms to be highly complementary, which should support a smooth integration,” Morton added. “Our objective will be to integrate the business in way that's optimal for the company's growth and competitiveness, our ability to serve our clients, and the needs of our team members.”

As with many legal technology solutions, the key for success will not lie in technology alone, but how technology aligns with the people working with technology and the processes underlying its implementation. Marrying these three facets, Morton said, was a key driver for the deal, given the current GRC market.

“Both ACA and Cordium firmly believe that the future of the industry lies in finding the perfect balance of technology and consultant expertise to ensure clients are always one step ahead of the regulations and risks, and able to manage both in the most effective and efficient way,” he explained.