The Corporate Library and GovernanceMetrics International merged with Audit Integrity, creating a company that will operate under the name GovernanceMetrics International, according to a GMI statement Thursday.
The merger, which already closed, follows the merger in July of The Corporate Library and GMI.
“At that time, discussions were under way to include Audit Integrity as well,” but an agreement ultimately took longer to be reached, said Jack Zwingli, CEO and director of the new combined firm and former CEO of Audit Integrity.
Exact terms were not disclosed, but no cash payments were involved in completing the merger, Mr. Zwingli said. The existing owners of the companies took a proportional share in the new combined firm based on the value of each of the companies.
James A. Kaplan, founder of Audit Integrity, owned more than 50% of the firm, and family and friends were also investors, Mr. Zwingli said. Mr. Kaplan, who was a director of AI, will become a director of the combined firm.
“We felt the name GovernanceMetrics best reflects who we are: leaders in governance research and ratings,” Mr. Zwingli said. “We will run the three units as one company.”
Richard A. Bennett — who was president and CEO of both The Corporate Library and Governance Holdings Co. — the combined entity that held TCL and GMI — will be executive chairman, Mr. Zwingli said.
Howard Sherman, who was executive director and head of global business development for the combined TCL and GMI, will be a director, leading sales and business development. Nell Minow, who was a director of the combined TCL and GMI, will be a director and leading spokeswoman.