Tyler
Technologies Inc. (NYSE: TYL) today
announced it has signed a definitive agreement to acquire MicroPact,
Inc., a leading provider of specialized, vertically oriented case
management and business process management (BPM) applications for
government, for approximately $185 million in cash. The transaction is
targeted to close on March 15, 2019, pending federal regulatory
approvals.
"This is the second largest acquisition in Tyler Technologies' history
and represents a continuation of our long-term strategy to add
best-of-breed companies and products that complement our current
offerings and support our goals for continued growth," said Lynn Moore,
president and chief executive officer of Tyler. "The acquisition of
MicroPact will augment our product solutions, position us in new
practice areas such as health and human services, and present
opportunities to expand our business across new and complementary
markets. We're particularly excited about the opportunity to
significantly expand our total addressable market through MicroPact's
strong presence in the federal market. Additionally, MicroPact brings an
outstanding leadership team, an excellent partner network, and a strong
company culture that is much like our own."
MicroPact is a leading provider of commercial off-the-shelf (COTS)
solutions, including entellitrak®, a low-code application
development platform for case management and business process
management. Whether based on premises or in the cloud, its Data-First™
approach allows entellitrak to be implemented immediately and configured
continuously, enabling clients to get to work quickly while keeping
costs low.
Founded in 1997 by CEO Kristoffer Collo, MicroPact was formerly known as
MicroPact Engineering and since 2012 has operated as MicroPact through
several affiliated entities. The company is based in Herndon, Va.,
employs 469 people, and has annual revenues of more than $70 million.
"We are very happy to join forces with Tyler Technologies, the clear
leader in public sector software technology with an outstanding company
culture focused on excellence in all things, including client-centric
service," said Collo. "Tyler and MicroPact share a common vision and
passion for transforming government by empowering organizations with
solutions that create efficiencies and abilities to quickly solve
difficult problems."
MicroPact brings an impressive roster of more than 350 top-tier public
sector clients, including the Department of Justice, Department of the
Treasury, Social Security Administration, and the National Aeronautics
and Space Administration, and statewide agencies such as the California
Department of Consumer Affairs, the Tennessee Department of Health, and
the Florida Office of Regulation.
Additionally, through the extensive MicroPact Global Alliance program,
Tyler will gain a partner network which includes companies such as
Accenture, Amazon Web Services (AWS), Booz Allen Hamilton, CACI, General
Dynamics Information Technology, and NTT Data.
Michael Lustbader, a managing partner at Arlington Capital, said,
"MicroPact has invested heavily in its product portfolio during our
ownership, ultimately achieving market leadership in strategic verticals
within the public sector case management software market. Through its
innovative technology and knowledge of the government marketplace, the
company is uniquely positioned to expand Tyler's addressable market
while also introducing an additional product portfolio to its core
customer base."
MicroPact's headquarters in Herndon, Va., as well as its other
locations, are expected to remain in place after the acquisition, and no
staff reductions are anticipated. Spurrier Capital Partners acted as
financial advisor to MicroPact for this transaction.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) is a leading provider of end-to-end
information management solutions and services for local governments.
Tyler partners with clients to empower the public sector - cities,
counties, schools, and other government entities - to become more
efficient, more accessible and more responsive to the needs of their
constituents. Tyler's client base includes more than 15,000 local
government offices in all 50 states, Canada, the Caribbean, Australia,
and other international locations. Forbes has included Tyler on its
"Best Small Companies" list eight times, and ranked Tyler on its "Best
Midsize Employers" list in 2018. More information about Tyler
Technologies, headquartered in Plano, Texas, can be found at www.tylertech.com.
About Arlington Capital Partners
Arlington Capital Partners is a Washington, D.C.-area private equity
firm that has managed $2.2 billion of committed capital via four
investment funds. Arlington focuses on middle market investment
opportunities in growth industries, including government services and
technology, aerospace/defense, healthcare, and business services and
software. Arlington invests in companies in partnership with high
quality management teams that are motivated to establish and/or advance
their company's position as leading competitors in their field. www.arlingtoncap.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20190201005032/en/
Nina Minney
Tyler Technologies
972-713-3770
Nina.Minney@tylertech.com