Corlytics, the regulatory intelligence and policy compliance technology firm, has announced the acquisition of a digital regtech platform from Deloitte UK.

The announcement closely follows Verdane’s majority stake investment last month to cement Corlytics’ global category leadership. 

Corlytics, headquartered at NexusUCD in Dublin, works in developing intelligent regulations and taxonomies with regulators such as the FCA; and acquired the key policy management technologies of ING’s SparQ and Clausematch last year. It is the regtech partner of choice for the world’s largest financial services firms.

Plugged directly into international regulators, Corlytics is the only solution that enables clients to align with, and stay ahead of, regulatory demands, which increasingly require growing levels of proof of compliance.

L-R: John Byrne, CEO and founder, Corlytics; and Kent Mackenzie, COO, Corlytics and former Deloitte UK Partner and head of regtech.

Unique capabilities

The Deloitte UK regtech platform and its unique capabilities add considerable breadth and domain expertise to further Corlytics’ capabilities from interpreting regulatory change, to mapping policies and now to controls – empowering users to find, interpret, understand and accurately implement regulatory change.

It will extend Corlytics’ coverage in Europe and the US, and provide the capability to further augment the Corlytics platform for global Tier 1 organisations in financial services, but also into sectors such as big tech and pharma.

John Byrne, CEO and founder, Corlytics said: “This is a transformational acquisition for clients. The regtech market is growing and evolving fast, and Corlytics is positioned at the forefront. We continue to seek opportunities for sustainable expansion and consolidation, and are thrilled to incorporate this Deloitte UK platform and associated team.

Deloitte UK has been using our intelligent data for five years now, and I’m thrilled to take this relationship to the next level. Our ambition goes beyond intelligent data solutioning, we aim to establish a new horizon and set a new standard for how compliance is managed.

“The Corlytics business and this Deloitte UK regtech platform are hugely complimentary, and as a combination can offer a truly unique, end-to-end platform in the market. This is a game changer for our clients and the industry. Together, we can completely address the critical challenges clients are desperate to solve, and elevate the value and intelligence placed on regulatory content and management.”

Last month John Byrne received the 2024 NovaUCD Founder of the Year Award.

A total of 17 people that work within the Deloitte UK regtech platform will be joining Corlytics as part of the acquisition. Kent Mackenzie, Deloitte UK Partner and head of regtech, will join Corlytics as COO.

Cindy Chan, managing partner for risk advisory at Deloitte UK, said: “Having built this platform from scratch over the last eight years, we are extremely proud of the growth the team has achieved and the service that has been delivered to our clients. Following the approach from Corlytics to buy the platform, we feel that this sale offers the best opportunity for the team to continue to grow the business and develop their careers.”

2023 saw Corlytics make two significant acquisitions, ING SparQ and Clausematch, creating an unparalleled platform that manages the entire regulatory risk value chain on a global scale, elevating its extensive offer for Tier 1 organisations including ING, BNY Mellon, ScotiaBank and SwissRe.

Growth of global regtech market

Further ambitious growth is planned over the next two years, with the global regtech market anticipated to grow at a CAGR of 23.6% between 2024-2032.

Nils Vold, partner at Verdane, said: "We backed Corlytics as the regtech category leader just three weeks ago, and we are thrilled to already be supporting John and his excellent team on their first acquisition since Verdane’s majority investment.

"As specialist technology growth investors, we partner with leading entrepreneurs, to support them on both their organic and acquisitive growth journeys. This acquisition is a fantastic step forward for Corlytics, its people and its customers."

Since 2020 Corlytics has grown 60% per annum, predominantly driven by its core regulatory compliance products. The number of customers has roughly doubled during this period.

Today, it forecasts double digit growth of about 35% CAGR through to 2028. New products, content classes and additional acquisitions are expected to contribute further to growth by 2028.