UPDATE 1-Compliance firm Exiger buys Canadian regtech startup OutsideIQ

Solarina Ho

(Corrects 2nd paragraph to read "acquisitions of a

venture-backed firm", not "by a venture-backed firm")

TORONTO, April 27 (Reuters) - Exiger, a firm that helps

businesses monitor compliances such as money laundering

regulations, has agreed to buy OutsideIQ, a Canadian startup

that specializes in technology that helps businesses assess and

manage risk.

The deal, reported earlier by Reuters, is for C$30 million

($22.2 million), according to a person familiar with the

agreement, and is one of the top 10 largest disclosed

acquisitions of a venture-backed Canadian tech firm since 2014,

according to Thomson Reuters data.

New York-based Exiger, which has used OutsideIQ's

cloud-based software since 2014, sells technology and services

to help businesses comply with complex global regulations in

areas such as money laundering and financial crimes.

The deal is the largest to date by privately held Exiger.

The company was formed to lead the court-appointed oversight of

HSBC, which in 2012 admitted to allowing drug cartels

to launder hundreds of millions of dollars.

Toronto-based OutsideIQ, with 40 employees, uses cognitive

computing processes to automate and analyze a significant

portion of time-consuming, error-prone data research typically

done by workers. The process of combing through millions of

pieces of data is whittled down from days to minutes, the

company says.

Part of a growing crop of startups focused on regulatory

technology, or "regtech," OutsideIQ's software is used by

investment banks, insurance companies, SAP Ariba and


($1 = 1.3532 Canadian dollars)

(Reporting by Solarina Ho; Editing by Jim Finkle, Richard Chang

and Chris Reese)