12 February 2018
NEW YORK–(BUSINESS WIRE)–Diligent Corporation, the leader in secure governance and collaboration solutions for boards and leadership teams, announced today a new revenue milestone. Diligent surpassed more than $200 million Annual Recurring Revenue (ARR), a milestone that fewer than 50 SaaS companies have ever reached. Coinciding with this achievement, we are pleased to welcome a new equity partner, Clearlake Capital Group. As part of the transaction, Insight Venture Partners, who first partnered with the business two years ago, will remain the controlling shareholder. This strategic investment will help further accelerate Diligent’s growth and solidify its leadership position in the Enterprise Governance Management (EGM) market.
“The $200M ARR achievement is a credit to our client focus and ability to deliver the most widely adopted cloud solution that address the increasingly complex governance needs of leading organizations,” said Brian Stafford, CEO of Diligent Corporation. “We’re excited to welcome Clearlake Capital Group as a partner as we accelerate growth. This SaaS industry milestone is in part due to the tireless work of the Diligent team and a testament to our award-winning client support and high Net Promoter Score. Our scale allows us to invest more in product innovation, security and infrastructure than anyone else in the Enterprise Governance Management space.”
Diligent partnered with Insight Venture Partners in 2016 to take the company private and is now excited to welcome Clearlake Capital Group. This strategic investment will allow Diligent to continue to accelerate development of innovative governance solutions for its more than 12,000 organizations and 400,000 users worldwide. This news follows yesterday’s announcement and introduction of Diligent Governance Cloud – the only comprehensive EGM solution available on the market.
“The continued growth from Diligent and the company’s solutions-oriented approach to business needs made this an ideal investment,” stated Behdad Eghbali, Co-Founder and Managing Partner at Clearlake Capital Group. “With its significant investment in product and people, we believe Diligent is well-positioned to continue growing its leadership position in the EGM market. We look forward to leveraging our O.P.S.® approach to support Brian and his team, alongside Insight Venture Partners, in continuing to provide best-in-class solutions to Diligent’s global customer base. This type of ARR scale shows true customer loyalty and gives investors tremendous confidence in a company.”
“Since partnering with Diligent, the company has continued to innovate and deliver new products that strengthen its global position and the depth of its relationships with clients,” said Deven Parekh, Managing Director of Insight Venture Partners. “It has been a pleasure to partner with and support Brian and the team. Diligent is a rare, at scale, profitable entity in the SaaS industry and has the potential to be a billion-dollar revenue company in the Governance space.”
Diligent manages board security, compliance and subsidiary management, among many of the paramount concerns for governance stakeholders, including executive roles from corporations’ General Counsel and IT across the C-Suite. Diligent’s Governance Cloud is the only integrated and secure enterprise governance management solution that enables organizations to achieve best-in-class governance.
Morgan Stanley & Co. LLC served as lead advisor to Diligent Corporation and Insight Venture Partners. District Capital Partners provided transaction advisory services to Diligent Corporation.
Diligent is the leading provider of secure corporate governance and collaboration solutions for boards and senior executives. Over 12,000 clients in more than 90 countries and on all seven continents rely on Diligent for secure distribution of board materials to secure messaging, integrated compliance, board evaluation and entity management. Governance Cloud is the only solution that meets the evolving governance needs of leading organizations. Visit diligent.com to learn more.
Insight Venture Partners is a leading global venture capital and private equity firm investing in high-growth technology and software companies that are driving transformative change in their industries. Founded in 1995, Insight has raised more than $18 billion and invested in over 300 companies worldwide. Insight’s mission is to find, fund and work successfully with visionary executives, providing them with practical, hands-on growth expertise to foster long-term success. For more information on Insight and all its investments, visit www.insightpartners.com or follow on Twitter @insightpartners.
Clearlake Capital Group, L.P. is a leading private investment firm founded in 2006. With a sector-focused approach, the firm seeks to partner with world-class management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake’s operational improvement approach, O.P.S.® The firm’s core target sectors are software and technology-enabled services; industrials and energy; and consumer. Clearlake currently has approximately $7 billion of assets under management and its senior investment principals have led or co-led over 100 investments. More information is available at www.clearlake.com.
Greg Nyhan, +1 646-215-6884