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ComplySci Acquires Financial Services, Compliance Consultancy NRS

ComplySci, backed by private equity firm K1 Investment Management, has acquired National Regulatory Services (NRS), a provider of compliance and technology consulting to the financial services industry. Terms of the deal were not disclosed.

This is technology M&A deal number 694 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.

The deal bolsters ComplySci’s financial services offerings, according to the buyer. This is ComplySci’s first acquisition since receiving a $120 million growth equity investment from K1 Investment Management in June 2021.

The buyer and seller companies have worked together for years, according to ComplySci CEO Amy Kadomatsu, often referring clients to each other.

Founded in 1984, NRS supports small- and mid-size RIAs and investment adviser firms. NRS will continue operating as NRS, A ComplySci Company, with John Gebauer continuing his role as president, the company said. NRS was formerly part of Accuity, a LexisNexis Risk Solutions company and a part of RELX, a global provider of information-based analytics and decision tools for professional and business customers.

ComplySci Acquires NRS: Growing FinTech Offering

Amy Kadomatsu, CEO, ComplySci
Amy Kadomatsu, CEO, ComplySci
John Gebaur, president, NRS

Amy Kadomatsu, CEO, ComplySci, commented:

"When we received our recent equity growth investment of $120 million just over three months ago, we were excited to leverage the capital to add fuel to our growth through acquisitions as well as investments in our products and services. Our acquisition of NRS creates a truly differentiated offering of technology-driven, automated RegTech capabilities, combined with NRS' hands-on personal compliance guidance based on 30-plus years of experience, insight, and technical understanding.”

John Gebauer, president, NRS, said:

"Long before any strategic discussions started, we were deeply familiar with ComplySci's differentiated value proposition, and when the opportunity to join them arose, it made sense, both from a strategic perspective and in terms of enhancing our ability to offer our clients a holistic package of compliance-management solutions and services. We are thrilled to collaborate with Amy and the entire ComplySci organization as we move forward together as one firm, leveraging the combined power of our two business models."

ComplySci board member Stephen Marsh, added:

"I have a long history with both organizations, and I am thrilled to be working with John Gebauer and his NRS team again. The incredible growth potential that the combination of these two organizations will bring is exciting. With the acquisition of NRS, ComplySci will enhance their already robust suite of compliance solutions and continue to evolve as the provider of choice for automated regulatory and compliance solutions in the financial services space."

Financial Services M&A

M&A activity across the managed IT services provider (MSP) sector remains strong. MSPs that support financial services sector customers are among the most popular acquisition targets. These include organizations such as community banks, credit unions, Wall Street firms and/or private equity firms.

ChannelE2E has compiled a list of such deals, which you can read here.