Two years ago, GTY Holdings raised $552 million to buy tech companies and roll them up to create larger players.
Now the Las Vegas-based firm is putting its money to work with the acquisition of six public sector software companies, which it is combining.
The combined company, which wasn’t named, will be based in Austin. The companies will operate as business units and remain where they are currently headquartered.
GTY said it will purchase the companies for $365 million in cash and stock, plus an earn-out consideration of up to $132 million in cash and stock.
The new company will sell a software platform for state and local governments aimed at helping them connect with constituents.
The platform will provide a digital solution for citizen communication, payments, grant management, budgeting, permitting and procurement needs, said Bill Green, co-chairman of GTY Holdings.
“The state and local government market is an an inflection point, presenting a profound market opportunity,” Green said. “We will give these companies channel support and provide the capital, expertise and runway they need to capture significant share of this market which is poised for transformation.”
GTY Holding’s founders include Joe Tucci, who launched storage-software maker EMC, and former Accenture chairman Bill Greene.
Among the acquisitions made by GTY Holdings was Chicago-based government tech startup CityBase, which GTY Holdings is purchasing for $160 million in cash and stock. It is also providing CityBase $10 million in new equity.
Founded in 2012, CityBase provides online payment technology and other digital services to governments. Its platform allows residents to search and pay for things such as parking violations and property taxes.
The other companies GTY purchased were:
- Bonfire Interactive, a Canada-based procurement software maker
- eCivis, a Pasadena, Calif.-based grants management system provider for government
- Open Counter Enterprises, a San Francisco-based permitting and licensing software maker
- Questica, a Canada-based budget and performance management software maker
- Sherpa Government Solutions, a Denver-based public sector budgeting software maker
The transaction is expected to close in early 2019.
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