Governance, Risk and Compliance Companies to Merge

ELT Inc., EthicsPoint Inc. and Global Compliance Services Inc. announced their intent to merge, forming a potential major player in the Governance, Risk and Compliance (GRC) industry.

New York — Feb. 1

ELT Inc., EthicsPoint Inc. and Global Compliance Services Inc. announced their intent to merge, forming a potential major player in the Governance, Risk and Compliance (GRC) industry with the capacity to meet the expanding needs of customers all over the world. The merger is anticipated to close at the end of February. Terms of the deal were not disclosed.

The combination of these complementary platforms will seek to create a company with significantly expanded capabilities and resources, a workforce of several hundred employees, a client base of nearly 6,500 organizations around the globe, and an unmatched commitment to quality and continual innovation.

Mark Reed, EthicsPoint’s president and CEO, will assume the CEO position of the merged organizations. Shanti Atkins, ELT’s president and CEO, will serve as the combined company’s president and chief strategy officer. Jim Burke, Global Compliance’s CEO, will serve on the company’s Board of Directors.

Enterprise risk and compliance issues have become more complex and globalized. Greater regulation and enforcement is expected in the future, escalating litigation risk and an increasing focus on ethics and compliance.

The Riverside Co., a private equity firm, invested in ELT in December 2010 and both organizations committed to the compliance and ethics industry further in December 2011, with the acquisition of Global Compliance Services.

Separately, ELT and Riverside entered into an agreement to acquire EthicsPoint at the end of January. The combined entity intends to deliver a comprehensive platform that provides clients with access to services to protect their organizations, enhance their workplace environments, and drive better business results.

Source: EthicsPoint Inc. and Global Compliance Services Inc. and ELT Inc.