Cinven to acquire Archer

April 14, 2023
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International private equity firm Cinven today announces that it has reached an agreement to acquire Archer, a leading provider of integrated risk management solutions, from RSA Security, a portfolio company of Clearlake Capital Group, L.P. and Symphony Technology Group. Financial terms of the transaction were not disclosed.

Archer is a leading provider of governance, risk and compliance (‘GRC’) software globally. Founded in 2000, Archer has a 20+ year track record of providing integrated risk management (‘IRM’) and software solutions across the GRC landscape. Archer’s industry leading solutions support its diverse and growing customer base of large and mid-sized enterprises to improve their strategic decision-making and operational resilience. Headquartered in Kansas, US, Archer has significant international operations in Europe, the Middle East, and APAC, with European expansion a strategic priority.

Having spent significant time targeting investment opportunities in the global GRC subsector, Cinven’s TMT and Business Services sector teams in North America and Europe worked closely together to identify Archer as an attractive primary carve-out investment opportunity, given:

  • The GRC software market is highly attractive, rapidly growing and fragmented, with opportunity for further consolidation;
  • Archer has a leading position, with the opportunity to grow further through organic and inorganic expansion in both North America and Europe;
  • The quality and breadth of Archer’s product portfolio, as it serves more than half of the Fortune 500; and
  • Archer’s highly recurring revenue stream, with strong visibility and high customer retention.

Through this transaction, Cinven will support the long-term strategic growth of Archer’s integrated software platform as a standalone business following the initial carve-out from RSA Security. Drawing on its European and US platform and expertise, Cinven will work in close partnership with management to continue internationalising the business, including executing opportunities to expand Archer’s presence in key markets and verticals across both North America and Europe.

Julia Kahr, Partner and Head of North America at Cinven, commented: “This transaction exemplifies Cinven’s ability to deploy our differentiated sector-country matrix to carve-out and invest behind high-growth businesses, and to position them for long-term success as standalone companies. This is a tremendous opportunity to leverage our sector expertise and established track record of investing in both North America and Europe to drive growth in a leading business with an unmatched product offering in a dynamic and growing market.”

Daniel Garin, Senior Principal at Cinven, added: “The governance, risk and compliance market has been a significant focus area for Cinven globally for many years, and Archer continues to be a leading player in a highly fragmented market. Our investment in Archer builds on our strong track record of driving product innovation and geographic expansion that better supports customers around the world.”

Bill Diaz, Chief Executive Officer at Archer, commented: “Cinven has a strong track record of driving value in software businesses and they are the ideal partner to support Archer’s next phase of growth. This partnership with Cinven will allow us to capitalize on significant growth opportunities both organically and through strategic acquisitions and further accelerate our leading position to the benefit of our customers, employees and all stakeholders.”

Upon the close of the transaction, Bill Diaz will continue to lead the business as Chief Executive Officer alongside the existing Archer leadership team.

The transaction is subject to regulatory approvals and other customary closing conditions.

About Cinven

Cinven is a leading international private equity firm focused on building world-class global and European companies. Its funds invest in six key sectors: Business Services, Consumer, Financial Services, Healthcare, Industrials and Technology, Media and Telecommunications (TMT). Cinven has offices in London, New York, Frankfurt, Paris, Milan, Madrid, Guernsey and Luxembourg.

Cinven takes a responsible approach towards its portfolio companies, their employees, suppliers, local communities, the environment and society.

Cinven Limited is authorised and regulated by the UK Financial Conduct Authority. In this press release ‘Cinven’ means, depending on the context, any of or collectively, Cinven Holdings Guernsey Limited, Cinven Partnership LLP, and their respective Associates (as defined in the Companies Act 2006) and/or funds managed or advised by any of the foregoing.

For additional information on Cinven please visit www.cinven.com and www.linkedin.com/company/cinven/.

About Archer

Archer is a leading provider of integrated risk management (IRM) solutions that enables customers to improve strategic decision-making and operational resilience with a modern technology platform that supports qualitative and quantitative analysis driven by both business and IT impacts. As a true pioneer in GRC software, Archer remains solely dedicated to helping customers manage risk and compliance domains, from traditional operational risk to ESG. With more than 20 years in the risk management industry, Archer’s customer base represents one of the largest pure risk management communities globally, with more than 1,200 customers, including more than 50% of the Fortune 500.

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