Insight Partners, Blackstone, and Clearlake Capital, the joint owners of Diligent Corporation, are considering strategic options for the corporate governance software provider, including a potential sale that could value the business at around $7bn, including debt, according to a report by Reuters.
The report cites unnamed sources familiar with the matter as revealing that the private equity firms have started consulting with investment banks in preparation for a potential sale process, expected to begin in early 2025.
Although these deliberations are still in preliminary stages, potential buyers could include other private equity firms or data and technology companies such as the London Stock Exchange Group (LSEG) and S&P Global. Diligent and its investors — Blackstone, Insight Partners, and Clearlake — have declined to comment on the matter, while S&P Global did not immediately respond to requests.
The potential move comes as private equity firms look to exit older investments after a period of slowed deal-making, largely due to high interest rates that have increased the cost of financing leveraged buyouts. Now, with signals of possible interest rate cuts from the US Federal Reserve, private equity firms are both preparing to deploy newly raised funds and planning to divest holdings they held onto during the recent slowdown.
Diligent, headquartered in New York, offers secure communication and collaboration tools tailored for company board members, senior executives, and governance committees. The company has a strong customer base, with over 700,000 users in top leadership roles globally.
Insight Partners initially acquired Diligent for $624m in 2016, taking it private from the New Zealand stock exchange. Clearlake Capital and Blackstone acquired minority stakes in 2018 and 2020, respectively.
