Augmenting the market-leading Compliance 360© and accelerating risk and compliance business growth
SAI Global Limited has announced that it has reached an agreement to acquire 100 per cent of Modulo International (Modulo Security LLC), a leading IT governance, risk, and compliance (IT GRC) technology solutions company from Brazilian parent company, Modulo Security Solutions SA.
The acquisition, which complements and augments SAI Global's leading governance, risk and compliance software platform, Compliance 360©, furthers SAI Global's strategy to focus its globally integrated, risk management solutions business towards higher margin, higher growth software, and digital products and services.
Modulo's IT GRC solution enables Chief Information Officers (CIOs) and Chief Security Officers (CSOs) to address corporate and information security risks and meet compliance obligations.
The acquisition includes a perpetual license to the Risk Manager™ platform source code including the right to modify, use and sell the code as required. Modulo Security Solutions SA will continue to own the source code and to deliver its Smart Government and Command and Control solutions worldwide, and will also have the exclusive right to sell its IT GRC solution in Brazil, Mozambique and Angola for a five year period. After 5 years both companies will be free to operate internationally without territorial constraint.
By offering a strong portfolio of clients in multiple sectors, the acquisition of Modulo International complements SAI Global's existing customer base and provides expansion into valuable vertical industries, including consulting, critical infrastructure, energy, higher education, finance, manufacturing, public sector, services and retail.
SAI Global CEO, Peter Mullins, said that as an expanding market with material headroom for growth and a ubiquitous client need, IT GRC was identified by SAI Global as a priority opportunity for expansion of the company's compliance and risk management business and a valuable addition to SAI Global's leading Compliance 360 risk management software solution.
"In an increasingly complex business operating environment, the need for CIOs and CSOs to address corporate and information security risks and meet compliance obligations, is paramount. While already a leader in this space, the opportunity for us to acquire Modulo International arose at the right time. Augmenting Compliance 360 with an IT GRC capability and providing an entry point into a range of complementary client sectors and markets, the acquisition enables us to efficiently accelerate the growth of our global risk software business."
CEO, SAI Global
Modulo International has shown consistent year on year growth over the past three years (revenue CAGR 26%) with an increase in annuity revenues from 36 per cent in FY14 to 56 per cent in the last 12 months.
When the acquisition is completed Modulo International will become a wholly-owned subsidiary of SAI Global, with the Modulo International team headquartered in Atlanta seamlessly integrating into SAI Global's Atlanta offices.