A Sydney software company founded in 1999 by two former PwC executives to tackle governance, risk, and compliance (GRC) issues has sold a majority stake in the business to US investment firm PSG Equity for US$280 million (A$445m).
The deal for Protecht gives an exit for California growth equity firm Arrowroot Capital after just three years, when it led a $42 million raise – the software company’s first after more than two decades bootstrapping – in February 2022.
It’s also cashing up cofounders David Bergmark and David Tattam, who both had 24% stakes in the Protecht, and retain small holdings. Tattam is stepping down from the board.
Protecht has offices in Sydney, Los Angeles, and London, and its enterprise risk management platform is used by governments, financial services, education, and others,
Bergmark, the CEO, said the investment will help them develop AI-driven risk management solutions for companies.
“This investment marks a significant milestone for Protecht. We are embarking on the next phase of our growth alongside the PSG team, whose operational expertise and resources will help us scale globally,” he said.
“Together, we share a vision to supercharge Protecht’s offering with AI, driving innovation and advancing the transformation of risk. With PSG’s support, we are poised to enhance our offerings and provide great value to our clients, helping them navigate the complexities of today’s regulatory landscape.”
PSG MD Adam Marcus said Protecht has strong client retention, stands out as a leader in the GRC software space.
“The global risk management market is projected to reach nearly US $22 billion by 2029, underscoring the immense need for innovative, and scalable solutions,” he said.
“We believe Protecht is positioned to capitalise on this growing market.”
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