NEOGOV Announces Growth Investment From The Carlyle Group And Warburg Pincus
New investment will accelerate NEOGOV’s strategic initiatives and growth opportunities
NEOGOV, a market leader in public sector human capital management and policy management software, announced a significant investment from The Carlyle Group , a global investment firm, and existing investor Warburg Pincus, a leading global growth investor. Terms of the transaction were not disclosed.
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Founded in 2000, NEOGOV provides a market-leading software-as-a-service (SaaS) human capital management platform to automate and streamline the employee lifecycle for state and local government, education, public safety, and other public sector customers. NEOGOV’s software is designed specifically for the unique requirements of these complex and regulated end-markets and serves more than 6,500 organizations.
“NEOGOV is differentiated by leveraging technology to provide the public sector workforce with a streamlined approach to human resources support, a historically complex process. As we move forward with new capital, we will look forward to building out our product suite through organic channels and evaluating acquisition targets in order to continue to provide our clients with the best level of service,” said Shane Evangelist, CEO, NEOGOV. “We are excited to have the combined capabilities of Warburg Pincus and Carlyle behind our efforts to scale our platform, invest in our team and bring new capabilities to our clients.”
The new investment from The Carlyle Group and Warburg Pincus will allow NEOGOV to capitalize on a number of compelling organic and inorganic growth opportunities, including investing in NEOGOV’s operations and go-to-market teams, continuing to expand the company’s product suite for current customers, and entering adjacent end markets. In addition to expansion into new markets, NEOGOV will continue to serve as a platform for meaningful M&A in the broader government technology landscape.
“In its mission to ‘serve the people who serve the people,’ NEOGOV makes hiring, training, and managing employees in the public sector easier, more effective, and more equitable,” said Ashley Evans, a Managing Director specializing in technology investing at Carlyle. “We are excited to partner with Warburg Pincus, Shane, and the rest of the NEOGOV team to leverage Carlyle’s deep expertise in government and technology investing and support the Company’s next phase of growth.”
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“Over the past four years of our partnership, NEOGOV has grown into a clear market leader in public sector HR and law enforcement accreditation and exhibits best-in-class metrics across growth and client retention. As the demand for SaaS-based systems focused on HR solutions grows, we continue to see significant growth opportunity for NEOGOV,” said Vishnu Menon, Managing Director, Warburg Pincus. “We are excited to continue to support NEOGOV, in partnership with Carlyle, as the company builds upon its leadership position in HCM and policy management software through product expansion and acquisition opportunities to serve their large and growing customer base,” added Brian Chang, Managing Director, Warburg Pincus.
Equity capital for Carlyle’s investment will come from Carlyle Partners VII, an $18.5 billion fund that makes majority and strategic minority investments primarily in the U.S.
William Blair served as exclusive financial advisor and Willkie Farr & Gallagher LLP served as legal advisor to NEOGOV in the transaction. Alston & Bird served as legal advisor to Carlyle. Transaction is subject to customary closing conditions.
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