January 15, 2021

Datasite Plans to Use Acquisitions to Accelerate Growth – CEO

By Rupert Cocke

Datasite, a Minneapolis-based SaaS technology provider for mergers and acquisitions (M&A) professionals, plans to accelerate its growth through acquisitions backed by its new sponsor, CapVest, said CEO Rusty Wiley. 

The takeover of the company by the private equity (PE) fund closed in mid-December. CapVest brings an inorganic mentality to its portfolio companies, Wiley said. 

CapVest is very supportive of continuing the organic product investments at Datasite and pursuing transformational acquisitions, a spokesperson for the PE said.

Datasite, which provides virtual data rooms (VDRs), hired an external tier-one consultant to get a sense of the M&A opportunity, Wiley said. The consultant estimated its potential market as being around USD 11bn, he said, adding that the company has a surfeit of potential targets.  

The company, which was formerly known as Merrill Corp, already has a relationship with a number of advisors, who provide leads, Wiley said. It would be prepared to give mandates, particularly on more complex deals, he added.  

Goldman Sachs worked as Datasite’s exclusive financial advisor on the CapVest buyout, while Akin Gump Strauss Hauer Feld was its legal advisor.

Datasite will continue to develop new products and services organically, particularly those related to or adjacent to due diligence, the CEO said.  These include areas such as analysing buyer behaviour and an artificial intelligence (AI)-based categorization tool, he said.

Inorganic opportunities make sense as the company moves further away from due diligence, Wiley said. “We look at everything that touches the life cycle of an M&A deal,” he said, adding that it could also look to roll up smaller VDR players.  

Potential areas for deals include post-deal integration, ideation (or origination), customer relationship management (CRM) tools, pipeline management, new AI tech and analytics, Wiley said. The underlying idea is to add functionality to the platform or to automate parts of a deal, such as non-disclosure agreements (NDAs), he said.

Deals would be likely to range in size from less than USD 10m to more than USD 100m, Wiley said. Key criteria would include technology, culture and fit, he said, adding that the company values speed and agility.  

Ideally, technology targets would have a small number of active paying users, who the company could interview in due diligence, Wiley said. Datasite would help the target scale, he said, adding that its go-to-market capabilities are based on its client base, who have already approved it to store confidential information.

Datasite has facilitated close to 10,000 deals on its platform. It has a growing customer base in more than 180 countries and currently has more than 750 employees in 25 locations across 13 countries. 


Media Relations
Marta Carraro

Vice President, Communications


[email protected]

Investor Relations
Jennifer Percy


[email protected]

You may also like:

Making Corporate Wellness Programs Work

CHRO Deb LaMere comments on how involving both employees and managers in the design and implementation of corporate wellness programs can yield benefits for both employer and employee. The article highlights how this strategy helped Datasite secure a +90% employee participation rate in one of its programs.

What Might the U.K.’s 2021 Autumn Budget Mean for M&A Activities?

EMEA CRO Merlin Piscitelli writes about the current positive outlook for merger and acquisition activities in the U.K., and considers what potential tax reforms in the 2021 UK autumn budget might mean for the investment climate.

Preparing for Climate Change's Impact on M&A

CEO Rusty Wiley writes about the concrete steps dealmakers can and are taking to mitigate climate change’s impact on M&A on Nasdaq.com. With COP26 in November and potential new disclosure regulations on the horizon, the article also highlights how technology can help discover and track climate change and other environmental, social and governance risks.