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PE-backed Confluence to acquire CSS

Confluence Technologies (Confluence), a technology solutions provider helping the investment management industry solve complex investment data challenges, is to acquire Compliance Solutions Strategies (CSS), a global regulatory software (RegTech) company that enables financial services firms to meet mandatory regulatory compliance requirements.  

Confluence is backed by Clearlake Capital Group and TA Associates (TA).

Founded in 2017 and headquartered in New York, CSS offers clients a next-generation global RegTech platform underpinned by its proprietary Regulatory Book of Record (RBOR) data management solution. Servicing more than 600 clients globally, including nine of the top 10 global asset managers and six of the top 10 global hedge funds, CSS is a respected and fully integrated Compliance-as-a-Service provider, bringing together innovative SaaS-driven technology solutions, deep regulatory expertise and white-glove managed services to support the investment management community. CSS’s extensive solution capabilities span regulatory reporting, investment monitoring, transaction reporting and compliance program management.

This acquisition further advances Confluence’s strategy to expand its regulatory compliance offering and will create a unique and comprehensive cloud-based RegTech solution for the financial industry. With global coverage and SaaS solutions for enterprise risk, regulatory reporting, and compliance, the combined company will build on a culture of customer-centric innovation to better serve the asset management industry. The transaction is expected to close in the fourth quarter of 2021.

“Confluence is pleased to welcome CSS to the team as we look to deliver on our growth strategy. We have long respected their SaaS-based solutions and admire their depth of in-house regulatory expertise,” says Mark Evans, CEO of Confluence. “We see tremendous demand in this space as global regulators continue to refine and expand compliance and reporting obligations, furthering the need in the market for technology that streamlines operational efficiencies and drives scale. The CSS and Confluence offerings are highly complementary and together we will continue to deliver a truly innovative, end-to-end regulatory solution to our clients.”

“We are excited about Confluence’s acquisition of CSS and believe that it significantly enhances Confluence’s regulatory compliance capabilities,” says Behdad Eghbali, Founder and Managing Partner, and James Pade, Partner, of Clearlake. “With its second acquisition announced this month, Confluence is reshaping the investment management industry. Working alongside TA and the Confluence team, we will continue to look for opportunities to grow the business organically and through acquisitions, while optimising its operations.”

“We are excited to join forces with Confluence to create an unmatched regulatory compliance platform of scale, resilience, and global reach,” says Doug Morgan, CEO of CSS. “Confluence is an innovator in the investment management industry with highly complementary solution capabilities and a stellar reputation earned by helping clients manage complex requirements. This compelling combination will accelerate the efforts of both organisations in driving the digital transformation of regulatory compliance for our clients.”

Sidley Austin LLP served as legal counsel to Confluence.

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