Elizabethtown, Kentucky-based Venminder has been acquired by Tennessee-based Ncontracts, according to a news release.
That deal was accompanied by the simultaneous acquisition of Ncontracts and Venminder shares by Hg, a private-equity firm.
The terms of the acquisition were not disclosed.
Hg specializes in software and service businesses based in London. The firm has a portfolio consisting of more than 50 businesses that are worth a combined more than $150 billion, per the release.
"We see Ncontracts swiftly becoming a 'gold standard' provider of highly automated, AI-enabled, integrated software solutions for the financial industry," said Alan Cline, head of North America at Hg, in the release. "The merger with Venminder creates a compelling platform with a comprehensive product suite that can deliver significant value to customers.”
As we reported in 2020 when Vendminder raised $33 million in a Series C round, the company’s previous shareholders included Silversmith Capital Partners, Bain Capital Ventures and MissionOG.
A check of Venminder’s site says an “An Ncontracts company” underneath the Venminder logo.
Founded in 2021, Venminder runs a Software-as-a-Service (SaaS) platform for third-party risk-management. The platform has a client base of approximately 1,200 customers.
Through the platform, customers can perform tasks, such as tracking contract data with vendors, and perform due diligence and conduct risk assessments.
“Uniting Venminder and Ncontracts will bring tremendous value to our customers,” said Vendminder CEO James Hyde in the release. “This strategic partnership extends beyond third-party risk management, propelling Venminder into the broader integrated risk and compliance space. By combining our strengths, we are poised to deliver even more comprehensive and innovative solutions to our clients and the broader market.
"Our unwavering commitment is to continue to support our clients by guiding them through the complex landscape of third-party risk.”
Founded in 2019 and headquartered in the Nashville metro area, Ncontracts will be afforded “more depth and expertise” in the SaaS and Knowledge-as-a-Service (KaaS) verticals, according to the release. Its primary customers are banks, credit unions, registered investment advisers, fintechs and mortgage companies.
Venminder and Ncontracts now have a combined amount of customers that exceeds 5,000, according to a company spokesperson.
“We are excited to join forces with Venminder,” said Ncontracts Founder/CEO Michael Berman in the release. “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. With the investment and support from Hg, we are well positioned to continue our rapid growth. Gryphon (Venminder's previous shareholder) has been a valuable partner, and I want to thank their outstanding team of operating partners, operating advisers and investment professionals.”
Venminder was founded in 2002 by Dana Bowers and her husband, C. Michael Bowers. Dana Bowers — who is an emeritus board member for the University of Louisville’s College of Business — has served in various capacities — including CEO. She currently serves as the company’s chief solutions architect, according to its site, but she is about to retire from that role.
The company has a headcount of 210 employees, with 96 of them being based in Kentucky, the spokesperson said.
For the time being, Venminder's Elizabethown office at 400 Ring Road will continue to operate, but the spokesperson did say that both Veminder and Ncontracts are "adopting a remote-first deployment across the nation."
In August, Venminder made the Inc. 5000 list, placing at No. 3,509 with 137% revenue growth over the last three years. It was one of 28 Kentucky companies to make the list.
