Moody’s Corp. has continued its foray into the regulatory and compliance segment with the acquisition of two KYC solutions providers: PassFort Ltd. and 360kompany (a.k.a. kompany). The two acquisitions are aimed at adding to Moody’s KYC, AML and counterparty risk capabilities, and are illustrative of the heating up of the beneficial ownership, sanctions and financial crime segment.
The acquisition of PassFort and planned acquisition of kompany, which is expected to close in the first quarter, follow Moody’s recent investments in KYC capabilities. Moody’s will integrate both companies into its KYC business within Moody’s Analytics, where they will augment the Orbis company database it acquired through the $3 billion purchase of Bureau van Dijk in 2017, and the Grid database of risk profiles, adverse news, politically exposed persons, and sanctions it acquired as part of its RDC purchase.
UK-headquartered PassFort offers a SaaS-based workflow platform for identity verification, customer onboarding, and risk analysis. Its software delivers data from more than 25 third-party providers and automates the collection, verification, and secure storage of customer and supplier due diligence documentation. Vienna-based kompany provides a platform for audit-proof business verification and KYC. the company operates a network of primary source information on more than 115 million companies across 200 jurisdictions
“PassFort and kompany are innovators in the compliance and regulatory space, and their technologies will upgrade and accelerate our customers’ onboarding and monitoring processes,” says Keith Berry, General Manager of Moody’s Analytics’ KYC business unit.
Moody’s plans to integrate PassFort’s platform into its suite of KYC and compliance offerings to create a more holistic workflow solution, allowing customers to incorporate Moody’s data, including credit, cyber, ESG, and climate analytics, directly into their proprietary processes. Meanwhile, kompany’s API will enable Moody’s customers to conduct shareholder analysis and entity verification in real time, as well as retrieve original company filings and documents to meet their regulatory demands.
The acquisition of kompany will be funded with a combination of cash and shares of Moody’s Corporation common stock. The acquisition of PassFort was funded with cash. Neither is expected to have a material impact on Moody’s 2021 financial results. Moody’s was advised on both transactions by Paul Hastings LLP. PassFort was advised by SVB Technology Investment Bank and Taylor Wessing LLP. Kompany was advised by Schoenherr Attorneys at Law and BDO.
