Tyler Technologies to acquire MicroPact from Arlington Capital Partners
Acquisition to augment Tyler’s solution offerings and broaden addressable market.
PLANO, Texas — Tyler Technologies Inc. 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.