EL SEGUNDO, Calif. and
NEW YORK, June 2, 2021 /PRNewswire/ -- NEOGOV,
a market leader in public sector human capital management and
policy management software, today announced a significant
investment from The Carlyle Group (NASDAQ: CG), a global investment
firm, and existing investor Warburg Pincus, a leading global growth
investor. Terms of the transaction were not disclosed.
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."
"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.
About NEOGOV
NEOGOV is the leading provider of an integrated HR, payroll,
talent management, accreditation management and policy management
solutions for the public sector. NEOGOV customers report increased
employee productivity and engagement, time and cost savings,
improved regulatory requirement compliance, and reduced paper
processes, with a net result of better services for citizens.
Serving over 6,000 organizations, NEOGOV provides intelligent HR
for the public sector. More information at www.neogov.com.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with
deep industry expertise that deploys private capital across three
business segments: Global Private Equity, Global Credit and
Investment Solutions. With $260
billion of assets under management as of March 31, 2021, Carlyle's purpose is to invest
wisely and create value on behalf of its investors, portfolio
companies and the communities in which we live and invest. The
Carlyle Group employs more than 1,800 people in 29 offices across
five continents. Further information is available
at www.carlyle.com. Follow The Carlyle Group on Twitter
@OneCarlyle.
About Warburg Pincus
Warburg Pincus LLC is a leading global growth investor. The firm
has more than $60 billion in private
equity assets under management. The firm's active portfolio of more
than 200 companies is highly diversified by stage, sector, and
geography. Warburg Pincus is an experienced partner to management
teams seeking to build durable companies with sustainable value.
Founded in 1966, Warburg Pincus has raised 19 private equity funds,
which have invested more than $90
billion in over 930 companies in more than 40 countries. The
firm is headquartered in New York
with offices in Amsterdam,
Beijing, Berlin, Hong
Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San
Francisco, São Paulo, Shanghai, and Singapore. For more information please visit
www.warburgpincus.com.
Contact
The Carlyle Group
Brittany Berliner
+1 (212) 813-4839
Brittany.Berliner@carlyle.com
Warburg Pincus
Sarah McGrath Bloom
Sarah.Bloom@warburgpincus.com
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SOURCE NEOGOV