Artificial Intelligence & Machine Learning,
Governance & Risk Management,
GRC
Cybersecurity Compliance Vendor A-Lign Plans Global Expansion With Backing From Hg
Hg, a private equity firm based in London, has acquired a majority stake in A-Lign, a cybersecurity compliance vendor headquartered in Tampa, Florida. This strategic acquisition aims to enhance A-Lign’s audit and assessment capabilities on a global scale.
While the financial terms of the transaction have not been publicly disclosed, reports from the Tampa Bay Business Journal indicate that A-Lign’s valuation exceeds $1 billion. Hg is set to replace Warburg Pincus, which had originally invested in the firm back in August 2021, as the majority shareholder.
According to representatives from Hg, this investment is expected to fortify A-Lign’s commitment to protecting sensitive data for its clients. Hector Guinness and Joris van Gool of Hg emphasized that A-Lign’s unique combination of advanced technology and dedication to quality creates a substantial competitive edge, positioning the company for growth across various regions and service lines.
Since its inception in 2009, A-Lign has grown its workforce to 726 and has raised substantial capital, including a $54.5 million growth equity investment from FTV Capital in July 2018. Scott Price, the founder and current CEO, previously worked in technology risk consulting at Arthur Andersen. When contacted for comments, A-Lign did not respond.
Brian Chang, a Managing Director at Warburg Pincus, expressed pride in supporting A-Lign during a transformative period, noting the firm’s focus on expanding service offerings and a growing customer base. He highlighted A-Lign as exemplifying Warburg Pincus’s commitment to nurturing innovative leaders in the cybersecurity and compliance sectors.
A-Lign’s Role in Hg’s Investment Strategy
This acquisition marks Hg’s second significant investment in the cybersecurity domain within the last year, following their purchase of the Los Angeles-based firm AuditBoard for over $3 billion in May 2024. As part of the broader investment strategy, HgCapital Trust plans to inject more than $65 million into A-Lign.
Price articulated that this partnership arrives at a critical moment, as A-Lign gears up for its next growth phase. He pointed to Hg’s extensive expertise in scaling technology-enabled services as the right fit to enhance A-Lign’s service delivery.
A-Lign currently provides audits and assessments to over 5,700 clients across various standards, including SOC 2, ISO, HITRUST, FedRAMP, and PCI. The firm’s innovative approach is centered on technology, enabling it to achieve over 50% compounded annual growth over the last 15 years. A-Lign’s capabilities also extend to risk assessments for AI systems, ensuring compliance with regulations like the EU AI Act.
Hg’s Principal, William Holmes, identified A-Lign as exemplifying the characteristics sought in tech-enabled services investments. He expressed excitement about supporting the firm’s goal to become a global leader in cyber compliance services. Notably, while Hg maintains 12 investments in legal and regulatory spaces, only A-Lign and AuditBoard specifically target the cybersecurity sector, distinguishing them from other portfolio companies that provide broader risk management solutions.
