Monday August 22, 2016 0 comments
DENVER -- Granicus, a leading provider of software solutions to improve government efficiency and transparency, announced it signed a definitive agreement to be majority acquired by Vista Equity Partners (“Vista”), a leading private equity firm focused on software, data, and technology-enabled businesses.
Terms of the acquisition were not disclosed.
The investment continues Vista’s focus on acquiring best-in-class vertical software providers, offering mission-critical software to customers, the company said.
Existing owner K1 Investment Management (“K1”) will retain a minority ownership stake in Granicus moving forward.
“We believe technology will play an increasingly important role both in enabling the legislative processes that keep our local communities, cities, and states running efficiently, as well as ensuring communication, openness, and transparency in the process,” said Brian Sheth, Vista co-founder and president.
“We are thrilled to partner with the Granicus team and invest in the company as a platform for continued growth. We anticipate accelerated investment to bring additional capabilities to Granicus’ market-leading product suite to serve the needs of our customers.”
“K1 is excited to partner with Vista to support the next phase of growth at Granicus,” said Neil Malik, K1 co-founder and CEO.
“Since our investment in 2014, Granicus has solidified its position as the cloud software leader for government via strong organic growth, the acquisitions of AMCAD and Civica, and an operational revitalization that consolidated the company’s multiple offices to a single center of excellence in Denver.
“We believe Vista will be an outstanding growth partner for Granicus and K1 looks forward to continuing its support of the company.”
Headquartered in Denver, Granicus joins Vista with strong business momentum and significant tailwinds as government representatives look to engage more closely with their constituents. This mirrors a larger trend throughout the government IT industry as a whole, which spent $6 billion last year on software and is expected to grow 42 percent through 2018, according to Gartner.
Approximately 10 percent of all state and local municipalities in the United States rely on Granicus’ suite of products to increase government transparency and citizen engagement, while creating significant tax-payer savings through increased organizational efficiency, reduced printing costs and decreased manpower expenditure.
Additionally, the company serves several hundred school and special districts, helping provide stronger public visibility and accountability.
“This investment by Vista -- the recognized leader in enabling some of the best and most impactful software solutions available today -- validates the market leadership we’ve built to date and presents an exciting platform from which to leverage Vista’s immense intellectual capital and resources,” said Jason Fletcher, Granicus CEO.
“We look forward to working with the Vista team to continue to broaden our platform to further serve the needs of our customers.”
The transaction is expected to close in the third quarter of this year. Shea & Company served as financial advisor to Granicus, and Atlas Technology Group acted as financial advisor for Vista.