Gridiron Capital has once again closed an international add-on for its AML RightSource platform with the buy of Passcon GmbH.
AML is a Cleveland-based provider of anti-money laundering, Bank Secrecy Act, and other financial crimes reporting and compliance services to both bank and non-bank financial institutions.
AML was founded in 2004 to assist small and medium-sized financial institutions in meeting regulatory compliance requirements – many new laws were enacted after the September 11, 2001 terrorist attacks – related to reporting suspicious financial activity, specifically criminal and terrorist-related. Since 2004, financial regulations have grown ever larger and more complex.
Gridiron acquired AML in September 2020 and in March 2021 it completed the add-on acquisition of Arachnys Information Services, a London-headquartered provider of “know your customer” (KYC) and anti-money laundering compliance services.
Today, AML is one of the largest providers of anti-money laundering services in the world with more than 1,350 analysts and subject matter experts in 7 offices in Ohio (2), Phoenix, Buffalo, New York City, Toronto and London.
Passcon’s anti-financial crime services include KYC, transaction monitoring, sanctions, and investigations. The company has 300 employees and is headquartered in Hamburg, Germany with additional offices in New York City, Jacksonville, London, Singapore, Vienna, Copenhagen, Krakow, Zurich, and Frankfurt.
Passcon was founded in 2016 by Corinna Reibchen and post-closing she is joining AML as a managing director to focus on international sales and operations.
“We are thrilled to bring Corinna and the entire Passcon team on board to further expand our footprint and enhance our international delivery capabilities,” said AML CEO Frank Ewing. “Following the recent acquisition of Arachnys, this combination will allow us to provide a broader range of cost-effective, tech-enabled services, cementing AML as the leading provider of financial crimes compliance solutions around the globe.”
“The acquisition of Passcon is another significant step for AML as it executes on its strategic plan of expanding internationally, adding adjacent service offerings, and increasing tech-enablement,” said Will Hausberg, a managing director at Gridiron.
“We are impressed with the global business that Corinna and her team have built and are excited to welcome them to AML,” said Tom Burger, a co-founder and managing partner at Gridiron.
Gridiron invests in manufacturing, service, and specialty consumer companies with enterprise values from $75 million to $575 million and EBITDA from $8 million to $50 million. Sectors of interest include branded consumer, business-to-business and business-to-consumer services, and niche industrial.
New Canaan, Connecticut-based Gridiron held a hard-cap and oversubscribed closing of its largest fund, Gridiron Capital Fund IV LP, in December 2020 with $1.35 billion of capital.
© 2021 Private Equity Professional | April 1, 2021
