Gallant Capital Partners to Acquire Navient's Government Services

Gallant Capital Partners to Acquire Navient's Government Services Business

Gallant Capital Partners, recognized for its commitment to technology-driven innovation in the business services sector, has announced a significant agreement to acquire the Government Services segment of Navient Corporation, a public company listed on Nasdaq under the ticker NAVI. This acquisition marks Gallant's strategic investment in enhancing services that support government infrastructure across the United States.

Overview of Navient’s Government Services Division

This acquisition encompasses Navient's Government Services Division, which includes several key business units such as the Navient Business Processing Group and Duncan Solutions. The division specializes in providing tech-enabled outsourced solutions that cater to U.S. federal, state, and local government clients. NGS excels in areas like toll collection technology and parking services, program management, and revenue recovery.

Impact on Government Services Market

Gallant Capital sees the integration of Navient's Government Services as a gateway to broaden its service portfolio in the public sector. With NGS being recognized as a leader in the domain, Gallant plans to leverage its existing industry relationships to foster further growth and innovation in its operations. This investment is expected to enhance the technological framework and operational efficiency in government service delivery.

Quotes from Leadership

Anthony Guagliano, a Partner at Gallant, expressed optimism regarding this acquisition. He stated, "NGS is a leader in the government services industry with a proven track record of technology-driven innovation and growth. We look forward to supporting the NGS management team and to a future of continued growth as a standalone business.” Jon Gimbel, also a Partner, echoed his sentiments, emphasizing that Gallant is committed to nurturing the standalone NGS business and ensuring it reaches its fullest potential.

Acquisition Timing and Future Prospects

The agreement to acquire Navient's Government Services is projected to close in early 2025, pending customary conditions. This acquisition will represent another strategic platform investment from Gallant Capital Partners II, highlighting the firm's operationally focused investment strategy.

Workforce Transition

Importantly, the acquisition will involve the transition of approximately 1,200 employees who are integral to the NGS operations. This inclusion underscores Gallant's commitment to the workforce continuity and stability during the integration phase.

About Navient Corporation

Navient Corporation, recognized under the ticker NASDAQ:NAVI, is a leader in providing technology-enabled solutions tailored for educational finance and business processing. Their services not only simplify complex programs but also facilitate significant achievements for various stakeholders across education and government sectors. The firm focuses heavily on customer service and data-driven solutions that drive operational efficiency and maximize client value.

About Gallant Capital Partners

Gallant Capital Partners is a distinguished private equity firm founded in 2018, specializing in investments across the technology, business services, and industrial sectors. With a strategy that emphasizes collaboration with management teams and leveraging extensive industry networks, Gallant is dedicated to fostering sustainable growth. Their partnerships are meticulously aimed at enhancing operational capabilities and maximizing value for their portfolio companies.

Frequently Asked Questions

What is the nature of the acquisition by Gallant Capital Partners?

Gallant Capital Partners has signed a definitive agreement to acquire Navient's Government Services business, enhancing its footprint in the public sector.

What services does NGS provide?

NGS offers tech-enabled processing, call center support, revenue recovery, program management, and payment processing for government clients.

When is the acquisition expected to close?

The acquisition is anticipated to close in the first quarter of 2025, subject to customary conditions.

How many employees will transition under this acquisition?

Approximately 1,200 employees will transition to Gallant Capital as part of the acquisition.

What is Gallant Capital's investment strategy?

Gallant Capital prioritizes operationally focused investment strategies, aiming to partner closely with management teams to maximize growth and value across its portfolio.

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