Finance

Goldman Sachs to buy Lloyd’s Register assurance and cybersecurity arm

Goldman Sachs’ asset management arm is to buy the business assurance and cybersecurity unit of professional services firm Lloyd’s Register, as part of the latter’s plan to focus on its maritime business.

LR said the deal is expected to be finalised in the second half of this year, subject to regulatory approval.

The sale includes its entire business assurance and inspection services division, which houses LR’s cybersecurity business Nettitude. As part of the new ownership, the brand will be renamed to LRQA.

“We are delighted to invest in LRQA and look forward to accelerating the company’s growth trajectory both organically and through acquisitions,” said Michael Bruun, head of private equity in Emea at Goldman Sachs Asset Management, in a 29 June statement.

“We are excited by LRQA’s strong ESG capabilities and the important role the company plays supporting clients managing their sustainable growth path.”

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Paul Butcher, who has led the division within LR for the last three years, will take on the position of CEO of LRQA.

Meanwhile LR will pivot to focus on investing in its maritime service offering, it said, including through acquisitions. The deal was valued at above $100m, a spokesperson told Reuters.

LR chief executive Nick Brown said the transaction will “unlock significant growth potential” for both companies.

“For Lloyd’s Register, it comes at a time when there is a pressing need for specialist maritime advisers to guide clients through fundamental change and to help support their digitalisation and decarbonisation ambitions,” Brown said.

“This transaction builds on our 260-year heritage in the maritime industry and will strengthen our ability to take our compliance offering to the next level, expand our risk and advisory services and develop industry-leading digital solutions.”

LR also sold off its energy business to Inspirit Capital in October last year as part of the shift to focus on its maritime legacy. The professional services firm has been making changes as part of a strategic review of its business.

To contact the author of this story with feedback or news, email Emily Nicolle

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