Control Risks, a global strategic intelligence and security firm, said today that it has entered into an agreement to spin off two of its businesses, Discovery + Data Insights and Forensics, into a new, stand-alone company that will operate initially under the name of Control Risks – Compliance, Investigations & eDiscovery.
The new company will be owned by the private equity firm Beringer Capital, which will invest in expanding the company’s capabilities, technology and talent. Control Risks will retain a “meaningful” equity stake and a strategic partnership, it said, but it did not reveal the extent of that stake.
The company expects the transaction to close before the end of the year. Until then, the Discovery + Data Insights and Forensics businesses will remain part of Control Risks and operate as usual.
The company said that the spinoff will create a global company dedicated to helping organizations navigate complex risk, litigation, investigative and regulatory challenges.
The separate structure will enable increased investment in talent, technology, investigative and forensic capabilities, discovery, data analytics and geographic expansion, the company said.
In addition to maintaining an equity stake in the stand-alone company, Control Risks will maintain a close strategic partnership with the business.
The new company will be led by Chief Executive Officer Georges Sabongui, an industry veteran with more than two decades of experience leading and growing legal technology, e-discovery and professional services businesses. He was CEO of e-discovery company CloudNine from 2021-2024 and chief commercial officer of e-discovery and forensics company X1 from 2019-2021.
“Operating as a dedicated company will give us the focus and resources to invest more aggressively in the areas that matter most to our clients, including talent, technology, innovation and expanded capabilities,” Sabongui said in the announcement. “We intend to move quickly and build on what this team already does exceptionally well.”
All of Control Risks Discovery + Data Insights and Forensics teams across the Americas, EMEA and APAC will transfer to the new company. This will include the current partners Michele Wiener, Brad Kolacinski, John Kim and Brian Mich.
“Our agreement with Beringer Capital heralds an exciting new chapter,” Bill Udell, CEO of Control Risks, said in the statement. “Clients in the future will benefit from additional focus and investment across capabilities, innovation and an outstanding team.”