D.A. Davidson & Co. announced today that it served as the exclusive financial and strategic advisor to Aithent, Inc. and Rhoads Online Institute, regulatory and compliance management platforms serving the government and insurance verticals, respectively, on their combined sale to Equality Asset Management, a Boston-based, growth-focused private equity firm.
Following this acquisition, Equality Asset Management announced the formation of Auctivo, created through the acquisition and strategic integration of Rhoads Online Institute, Elation Systems, and the Government Software Division of Aithent (now Advanced GRC). The EAM portfolio company is designed to provide vertical market Governance, Risk and Compliance software solutions and other capabilities to governments and a range of companies across highly regulated industries.
“From data integration and automated workflows to actionable business intelligence, the combined strengths of our companies create a powerful platform to modernize regulatory and compliance operations across industries,” commented N. Venu Gopal, Co-Founder and CEO of Aithent, Inc. and Rhoads Online Institute, and now CEO of Auctivo. “The team at D.A. Davidson provided critical, strategic advice and senior-level attention from our earliest meeting through close. We are thankful for our partnership with their team and believe their industry expertise and buyer relationships played a critical role in our success.”
“Technology has become a key point of differentiation in the compliance and regulatory solutions for public and private sectors, and we believe Aithent and Rhoads offer market-leading solutions that will only evolve with the backing of a premier private equity group,” said Tom Selby, Managing Director, Technology Investment Banking at D.A. Davidson.
Aithent, Inc. helps advance operational efficiency and performance by developing and applying technology in uniquely effective ways, creating innovative, high-value solutions for organizations around the globe. Aithent’s highly scalable and flexible process management platforms are used to enhance operational efficiencies for organizations in the government, financial services, insurance, and healthcare industries worldwide.
Rhoads provides a highly scalable, cloud-based solution – Rhoads Professional Compliance Requirement Management (PCRM) – to boost organization’s compliance capabilities, resolving producer compliance concerns and automating 99% of licensing and appointment compliance in every state.
This transaction highlights the ongoing success of D.A. Davidson's Technology Investment Banking practice, which has completed 125+ transactions representing approximately $22 billion in value since 2020. D.A. Davidson’s Technology Investment Banking practice has coverage of financial technology, software, tech-enabled services, and communications technology.
D.A. Davidson’s Investment Banking division is a leading full-service investment bank that offers comprehensive financial advisory and capital markets expertise. The group has extensive transaction experience serving middle-market clients worldwide across four industry verticals: Consumer, Diversified Industrials, Financial Institutions, and Technology. Together with its European strategic partner, MCF Corporate Finance, D.A. Davidson originates and executes transatlantic M&A transactions under the common brand of D.A. Davidson MCF International.
About D.A. Davidson Companies
D.A. Davidson Companies is an employee-owned financial services firm offering a range of financial services and advice to individuals, corporations, institutions, and municipalities nationwide. Founded in 1935 with corporate headquarters in Great Falls, Montana, and regional headquarters in Denver, Los Angeles, New York, Omaha and Seattle, the company has approximately 1,600 employees and offices in 30 states.
Subsidiaries include D.A. Davidson & Co., a full-service investment firm providing wealth management, investment banking, equity and fixed income capital markets services, and advice; Davidson Investment Advisors, a professional asset management firm; and D.A. Davidson Trust Company, a trust and wealth management company.