Comply365 Announces Acquisition of Rolls-Royce's SMS Business
Rhea-AI Summary
Comply365, a provider of operational content, safety and training management solutions, has announced the acquisition of Rolls-Royce's SMS business (reverting to its former name AQD). This acquisition, along with the pending acquisition of ASQS, demonstrates Comply365's strategic investment in safety management solutions for aviation, rail, defense and space industries.
The integration of AQD will enhance Comply365's product capabilities by combining three SMS offerings: AQD, SafetyNet, and ASQS's iQSMS. The move aims to create a comprehensive, integrated platform connecting operational content, safety, and training management functions.
Comply365, backed by Insight Partners and Liberty Hall Capital Partners, will leverage AQD's industry expertise and customer base to strengthen its position in the global safety management sector. The transaction represents part of Rolls-Royce's ongoing transformation strategy to streamline its business operations.
Positive
- Strategic expansion of Comply365's safety management capabilities
- Addition of significant aviation customers to global customer base
- Integration of three complementary SMS platforms
- Backed by major investors Insight Partners and Liberty Hall Capital Partners
Negative
- Rolls-Royce divesting potentially profitable SMS business unit
- Integration challenges of combining three different SMS platforms
News Market Reaction
On the day this news was published, RYCEY declined 1.08%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Accelerates investment in safety management to create a leading, global all-in-one operational content, safety and training management offering
This acquisition of AQD will further strengthen Comply365's product capabilities and service offering in safety management and add a significant number of leading aviation customers to its global customer base.
The AQD team will bring deep industry knowledge and a sophisticated SMS offering to complement Comply365's existing SMS product, SafetyNet and ASQS's SMS product, iQSMS. The combination of three best-in-class SMS offerings and additional domain expertise further positions Comply365 as a trusted player in the safety management space.
Ilia Kostov, CEO of Comply365, said: "We are delighted to add the expertise and extensive aviation experience of the AQD team which further bolsters Comply365's offering in the safety management space. The acquisition of AQD, along with our recently announced acquisition of ASQS, reinforces our commitment to driving investment and innovation in safety management. These acquisitions strengthen our vision for creating a best-in-class, integrated offering that connects the essential functions of operational content management, safety management and training management."
Henry Frankievich, Managing Director at Insight Partners, said: "The acquisition of AQD further strengthens Comply365's position as a leading force in the global safety management sector. This transaction will help accelerate the execution of Comply365's strategy to provide greater value through a unified offering for its extensive global customer base." James Black, Partner at Liberty Hall Capital Partners added: "Building on Comply365's existing strengths in safety management, the acquisitions of ASQS and AQD represent significant milestones in the company's next phase of growth. We are thrilled to support Comply365's continued organic and inorganic investment in safety management which aligns with the company's broader vision of delivering a comprehensive offering focused on connecting the mission-critical functions of safety, training and operational performance."
Pez Kooner, Senior Vice President at Rolls-Royce said: "As part of our ongoing transformation, Rolls-Royce has made the decision to exit our SMS business and complete a share sale with Comply365. I'd like to thank the Rolls-Royce SMS team for their hard work and dedication to our customers. I know this level of professionalism will continue under the new management and I wish the team all the success at Comply365."
Legal advice to Comply365 was provided by Willkie Farr & Gallagher LLP. Rolls-Royce was advised by their in-house legal counsel, supported by DLA Piper in
About Comply365
Comply365 is a leading provider of Operational Content Management, Safety Management and Training Management in the highly regulated industries of aviation, defense, rail and space. Comply365 provides a powerful combination of expertise and products underpinned by unified best practices, empowering its customers to elevate operational excellence, transform safety management and training management, with closer integration of relevant data sets across domains. Comply365 product portfolio ensures its customers' crews and assets are always geared for peak operational performance, unlocking unparalleled financial and operational gains through more streamlined, robust and agile operations. Comply365 is the trusted technology partner of many of the most progressive aviation, defense, rail and aerospace organizations worldwide. For more information, please visit comply365.com.
About Insight Partners
Insight Partners is a global software investor partnering with high-growth technology, software, and Internet startup and ScaleUp companies that are driving transformative change in their industries. As of September 30, 2024, the firm has over
About Liberty Hall
Liberty Hall Capital Partners is a private equity firm focused exclusively on investments in businesses serving the global aerospace and defense industry. Liberty Hall's principals have a 25-plus year history of working together and have led the investment of over
About Rolls Royce Holdings plc
- Rolls-Royce is a force for progress; powering, protecting and connecting people everywhere. Our products and service packages help our customers meet the growing need for power across multiple industries; enable governments to equip their armed forces with the power required to protect their citizens; and connect people, societies, cultures and economies together.
- Rolls-Royce has a local presence in 48 countries and customers in over a hundred more, including airlines and aircraft leasing companies, armed forces and navies, and marine and industrial customers.
- Through our multi-year transformation programme, we are building a high-performing, competitive, resilient and growing Rolls-Royce. We are building the financial capacity and agility to allow us to successfully develop and deliver the products that will support our customers through the energy transition.
- Annual underlying revenue was
£17.8 billion in 2024, and underlying operating profit was£2.46 billion . - Rolls-Royce Holdings plc is a publicly traded company (LSE: RR., ADR: RYCEY, LEI: 213800EC7997ZBLZJH69)
View original content:https://www.prnewswire.com/news-releases/comply365-announces-acquisition-of-rolls-royces-sms-business-302420923.html
SOURCE Comply365
FAQ
What is the strategic significance of Comply365's acquisition of Rolls-Royce's SMS business (RYCEY)?
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