Diligent Acquires Brainloop: The Reasons and Perspectives Behind the Merger
Nov 29, 2021
These two companies have a history, so there are many reasons why they started the acquisition process to complete this deal. However, potential business growth is still the leading factor for joining forces. Is this why the American governance software provider Diligent acquired a German security platform, Brainloop? Whatever the reason, how does this alliance affect the end-user? Let’s find out.
What is Diligent?
Diligent Corporation is a privately-held SaaS company founded in 1994. The provider is headquartered in New York City but has offices in London, Washington., Budapest, Amsterdam, Galway, and Munich.
The distinguishing software feature is the Diligent Governance Cloud. It is a complex ecosystem of tools that automates board assignments through the following services:
- Diligent Boards™. It is secure storage for annotations, discussions, agendas, and other documents. It gives leaders an intuitive content management portal. Also, they can update data from any device.
- Conflict of Interest Form. The tool brings reports online, eliminating the need to “snail” mail information or assemble binders. Since the program facilitates the process, participants fill out the forms on time.
- Voting and Resolutions. Directors vote with one click using this option. There is also a comment box for users to explain the reasons for their choice. The program automatically counts the votes and summarizes the results.
- Diligent Minutes. As soon as a secretary starts taking notes, the program generates professional meeting minutes. Diligent Minutes automatically adds meeting topics, attendees, and dates. In this way, the document is more efficient and consistent.
|The company is proud of supporting more than 50% of Fortune 1000 organizations.|
What is Brainloop?
Brainloop workspaces are privacy-enhancing virtual data rooms for secure collaboration. The company has been providing its services since 2000. Brainloop is headquartered in Munich but operates offices in Vienna, London, Paris, and Zug. The provider boasts of delivering services to such world-renowned corporations as BMW and Deloitte.
Here are some of the popular Brainloop data room solutions:
- Brainloop MeetingSuite is a meeting and decision-making tool. It features automatic creation of agendas, file sharing via links, Brainloop Flows for repetitive task reduction. The IOS app allows participants to stay in touch to make decisions and have secure access to data.
- Brainloop DealRoom is a solution designed for due diligence and M&A deals. Consequently, there is an option for controlled access, granular permissions, data indexing, and two-step authentication.
- Brainloop BoardRoom is a high-security product for board meeting communications. Security technology, Information Rights Management, data encryption at rest and in transit, and ISO 27001-certified data centers ensure user protection.
Diligent acquires Brainloop
On 2 August 2018, the companies announced the completion of their acquisition process. The reason for the deal was a desire to complement their solutions and expand their markets. Diligent CEO Brian Stafford had this to say:
“We have long respected the trust and sterling reputation in Europe that Thomas and Brainloop have established through their highly secure virtual data room and collaboration solutions. Together, we look forward to bolstering Diligent’s presence in the high-growth DACH region and throughout Europe and offer our clients world-class products at the highest standards of security.”
In turn, Thomas Deutschmann, CEO of Brainloop, claims that security is their strongest point. Since it’s also a top priority for Diligent, the two companies matched well for partnering in the virtual data room market.
What changed after the deal?
Brainloop continues to operate under its brand. However, the company now differentiates itself from other data room providers by having reliable Diligent resources for global scalability, while Brainloop still uses data centers across Europe to store customer data.
Financially speaking, Diligent garners more than half of its revenues from outside of the U.S. However, it is worth noting that in 2018 the company revenue was $200 million but reached $550 million in 2020. This fact indicates the alliance’s success and relevance in continental Europe.
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