EQT and CPP Investments Boost Public Sector HR with NEOGOV Deal

EQT and CPP Investments Make Strategic Acquisition

The EQT X fund and Canada Pension Plan Investment Board are embarking on a significant acquisition. They are set to acquire NEOGOV, a prominent provider of human resources and compliance software tailored specifically for public sector agencies with an impressive client base of over 10,000 agencies.

Transforming Public Sector HR

NEOGOV specializes in offering cloud-based software solutions that cover the entire employee lifecycle. These tools are essential for government agencies striving for efficiency and adherence to local regulations. With the backing of EQT and CPP Investments, NEOGOV aims to enhance its service offerings, ensuring that agencies can operate effectively under stringent compliance requirements.

Collaborating for Growth

In this acquisition, EQT and CPP Investments plan to work closely with NEOGOV's CEO Shane Evangelist and the management team. Their goal is to capitalize on established industry experience and drive the company towards further expansion and innovation. This partnership is expected to amplify NEOGOV's growth trajectory in the ever-evolving software landscape.

NEOGOV's Mission and Vision

NEOGOV, founded in 2000 and headquartered in El Segundo, California, is dedicated to delivering quality human capital management solutions. As they continue to serve nearly 10,000 organizations across North America, their focus remains on increasing operational efficiency and improving service delivery to the public. Shane Evangelist emphasized, "Our mission is to help local governments optimize their operations and better serve their communities."

The Importance of This Acquisition

The strategic collaboration between EQT, CPP Investments, and NEOGOV is poised to revolutionize the public sector’s approach to human resources. By infusing necessary capital and guidance into NEOGOV, the consortium aims to innovate their HR offerings, integrating advanced technology and AI capabilities, thereby enhancing efficiency and compliance in public administration.

Exciting Future Ahead

With this acquisition, EQT X is projected to be 60 – 65 percent invested, incorporating a mix of earlier closed investments and newer commitments. NEOGOV's strong management team is seen as a perfect fit for EQT's strategy to invest in high-quality software companies that can deliver substantial value over time.

About NEOGOV and Its Offerings

The company provides essential software solutions that address various needs in the public sector, including recruitment, onboarding, performance management, and compliance management. This versatility has made NEOGOV a trusted partner for numerous government entities, ultimately enhancing how they operate.

Anticipated Closure and Further Actions

The acquisition is subject to standard regulatory approvals, with completion anticipated in the coming months. Financial advisers Moelis & Company LLC and legal counsel from Willkie Farr & Gallagher are assisting NEOGOV, while Jefferies LLC and Ropes & Gray are advising EQT.

Contact Information

EQT: EQT Press Office, press@eqtpartners.com
CPP Investments: Asher Levine, alevine@cppib.com, T: +1 929 208 7939
NEOGOV: Scott Jensen, sjensen@neogov.net

Frequently Asked Questions

What is the focus of NEOGOV's software solutions?

NEOGOV focuses on providing HR and compliance software for public sector agencies, supporting their operational needs.

Who are the partners in this acquisition?

The partners in the acquisition are the EQT X fund and Canada Pension Plan Investment Board.

What is EQT's role in this acquisition?

EQT aims to accelerate NEOGOV's growth and support innovation within its software offerings.

What can we expect from NEOGOV post-acquisition?

Post-acquisition, NEOGOV is expected to enhance its product offerings, particularly through advancements in AI and technology.

How many agencies does NEOGOV serve?

NEOGOV serves over 10,000 public sector agencies across North America, indicating its significant market presence.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

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