New York-based private equity firm Bregal Sagemount recently invested nearly $100 million in Options, a provider of cloud-managed services to the global capital markets.
Prior to the deal completing, Bregal Sagemount engaged Intuitus to provide buy side technology due diligence on Options, which also included a cyber security review.
Options has a client presence in over 20 countries worldwide and currently utilises 25 global data centre locations. The company operates from six offices in Europe, the USA and Asia.
As an investor in high-growth sectors Bregal Sagemount regularly works with and invests in rapidly-growing and fast-moving technology companies. Technology due diligence is integral to the decision-making process prior to an investment being made. Following a recommendation from Bregal Sagemount’s London office, the investment team in New York engaged Intuitus to undertake technology due diligence ahead of its acquisition of Options.
How Intuitus helped
Intuitus consultant Carl Chapman led the technology due diligence, which assessed the fitness for purpose of Options’ technology operations, its approach to service delivery and the ability of the business to scale in line with the expected business growth.
“Intuitus filled in the knowledge gaps,” says Matt Koven, Vice President at Bregal Sagemount. “The consultants highlighted key areas of risk and opportunity, and provided a list of priorities that needed to be worked through post-completion. The report provided us with a lot of value - having a technology roadmap helped focus the team and prioritise investment in certain areas within Options’ technology operations.”
As part of the engagement Intuitus consultant Geordie Stewart carried out a cyber security review. This assessed four key areas: Options’ primary information assets and related responsibilities, the effectiveness of Board oversight - particularly as it relates to cyber risk management and organisational cyber culture, operational cyber security processes and controls, and the overall organisational approach to incident response readiness.
“Cyber security is becoming more of a high priority issue,” says Koven. “We always include an evaluation of a company’s cyber security processes and systems as part of the due diligence process. It is vital that we have effective cyber security plans in place to ensure we comply with regulation and drive best in class operations.”
Results, Return on Investment and Future Plans
One of the issues highlighted by the Intuitus report was a need to improve service management. “Since the deal completed we’ve spent a lot of time looking at the issues impacting service delivery. Changes have been put in place and we’re already seeing signs of transformation in this area of the business,” says Koven.
“Intuitus did a fantastic job in identifying the risks and weaknesses that we needed to address as a priority post-completion. We’re working hard to grow Options, and looking forward to taking on new staff, increasing the customer base globally and introducing new and valuable services,” Koven concludes.
To find out more about Intuitus’ Buy Side Technology Due Diligence services get in touch.