glc govtech market snapshot - recapitalization advisors... · 2019-06-19 · glc expects...

GLC GovTech Market SnapshotGovernment Technology Capital Markets Update

A Financial Advisory Firm

www.glca.com

San Francisco | Denver | New York

MEMBER FINRA | SIPC

June 2019

Securities offered through GLCA Securities, LLC

http://www.glca.com/

GLC STRENGTHENS GOVTECH AND SAAS EXPERTISE

Growth Investment

The undersigned served as

exclusive financial advisor to

CivicPlus in this transaction

May 9, 2019

CivicPlus Receives Minority Investment from BV Investment Partners

MANHATTAN, Kan., May 13, 2019 -- CivicPlus, the integrated technology platform for localgovernment, has announced a strategic minority investment partnership with BV InvestmentPartners ("BV"), a middle-market private equity firm focused on the business services, software,and IT services sectors. The minority investment is being made in partnership with Ward Morgan,founder of CivicPlus and continual majority owner, and with the existing CivicPlus managementteam. BV is a private equity firm based in Boston, Massachusetts. BV has invested in a portfolioof relevant companies and will bring growth capital and strategic business development insightsto CivicPlus.

With over 20 years of success serving the needs of local governments and a commitment to anaggressive product development roadmap focused on developing innovative solutions exclusiveto the public sector, the leadership at CivicPlus determined the timing was ideal for forming astrategic partnership with a minority investor that can help take CivicPlus to the next level ofgrowth.

Brian Rempe, CivicPlus Chief Executive Officer, said, "We went through a careful vetting processto find the right partner who can help us achieve our ambitious goals in the years ahead. In BV,we found a like-minded partner that appreciates our market, our unique position within it, ourculture and employees, and the extraordinary opportunity that lies ahead in helping make localgovernment work better. I'm extremely proud of all that we have accomplished to date, and I'mconfident that the partnership with BV will put us in an even stronger position to offer evengreater value to our clients and their citizens."

Justin Harrison, managing partner of BV Investment Partners, said, "We have had a runninginvestment thesis within GovTech, and CivicPlus stood out to us very early on as a clear leader.Ward, Brian, and their team have built a great company, and we are honored and excited topartner with them for this next phase of growth at CivicPlus. This investment aligns well with ourbroader constituent engagement, software and technology services practices, and with ourphilosophy of partnering with great management teams to help accelerate growth.”

"We have accomplished monumental achievements over the past two decades," said WardMorgan, founder and majority owner of CivicPlus, "but we know that we are still scratching thesurface of what we can accomplish in the years ahead. We are delighted to have found in BV afirm that shares our excitement and vision for CivicPlus' future and look forward to workingclosely with them to make that vision a reality."

"We’d been called on for

years by investment banks ofall sizes. We selected GLC

because we trusted them andtook them at their word.

Time and time again thattrust was proven well-placed.

Many times throughout ourfinancing process we noted

how thankful we were thatwe had selected GLC. We

were thankful for theirexpertise in GovTech and

software, their efficient andhard-charging process, their

creativity and persistenceand their willingness to fulfill

their role as our trustedadvisor. The entire GLC team

was there for us from thebeginning to the end,

guiding us through theprocess and ensuring we met

with the best software andGovTech investors. Ward, I,

and the CivicPlus leadershipteam are extremely pleased

with the outcome.”

-Brian Rempe, CivicPlusChief Executive Officer

1

Note: The testimonials contained in this report may not be representative of the experience of other clients and are no guarantee of future performance or success.

1. GovTech Landscape & Capital Markets

2. Private Equity GovTech Portfolio Platforms

3. GovTech Industry Overview

TABLE OF CONTENTS

03

13

19

1. GovTech Landscape & Capital Markets

Data/Smart Cities

Admin, Finance, and Payments

Courts & Justice

CRM & Citizen-Facing P&L / CD&R

Public Safety

Health & Human

GIS & MappingPublic Works, Facilities, & Transportation

GOVSCAPE 2Q’19

FRAGMENTED GOVTECH LANDSCAPE

4

4

1 1 11

1

2

6

2

3

2

2

32

15

2

1

33

1

1

1

52

1

3

3

2

2

1

2012 2013 2014 2015 2016 2017 2018 2019

TRANSACTIONAL REVENUE

GovTech M&A activity has been robust over the last several years with both strategic and financial buyers deploying significant capital into the sector. Strategic acquisition activity has been led by Tyler Technologies, completing 23 acquisitions over the last decade and 11 acquisitions since 2016. Tyler’s most notable recent activity was the acquisition of MicroPact Inc., an Arlington Capital Partners portfolio company, for $195M. A heightened level of private equity activity in the sector has continued to fuel a number of PE-sponsored roll-ups, strategic M&A, and secondary sponsor trades.

Private equity, now with more than $2 trillion in dry powder, continues to be exceptionally active in the GovTech space. Investment activity and strong participation in M&A processes continues to be driven by favorable industry trends, such as increasing government IT spend and adoption of Cloud technologies, a growing ecosystem of emerging Cloud application vendors offering alternatives to antiquated legacy enterprise systems, infrastructure spending forecasts, and a highly fragmented vendor ecosystem that presents attractive roll-up opportunities. Since 2016, private equity firms have acquired or invested in more than 40 new GovTech platforms.

Notable private equity activity since January 2018 includes the consolidation of Superion, Aptean, & TriTech into CentralSquare Technologies by Bain Capital and Vista Equity Partners. CentralSquare Technologies alongside its capital partners then went on to acquire Lucity in January of 2019. Clearlake Capital was also active in the GovTech market with the acquisition of Dude Solutions from Warburg Pincus and a growth investment in Appriss alongside existing investor, Insight Venture Partners.

Additionally, Polaris Partners added to its GovTech stable with the acquisition of platform company Emergency Reporting in April 2019.

GLC expects consolidation in the GovTech sector to continue at notable levels through 2020, driven by the increasing number of institutionally-owned strategics continuing

to canvass a highly fragmented market of independent GovTech software vendors and service providers.

GovTech M&A Market Summary and Most Active State & Local GovTech Acquirers

Source: S&P Capital IQ; 451 Group; GLC proprietary data; (1) YTD through April 2019

35

31

24

46

54 52 52

20

40

2012 2013 2014 2015 2016 2017 2018 2019

Total Deal Volume

Annualized Deal Volume

(1)

60

19

17

9 9 9

5

HIGHLY ACTIVE GOVTECH M&A MARKET

*Note: CentralSquare historical M&A activity includes transactions completed by TriTech and Superion prior to the combinationwith Superion and Aptean.

5

Enterprise

Announced Acquirer Target Value

6/6/2019 Passport Complus Data Innovations NA

5/9/2019 BV Investment Partners CivicPlus Inc. ***

5/3/2019 Clearlake Capital Group, L.P. Dude Solutions Inc. NA

4/26/2019 NxGen Communications Corp. Imex Systems Inc. (TSXV:IMEX) NA

4/25/2019 Technology Crossover Ventures Rave Wireless, Inc. NA

4/17/2019 Polaris Partners Emergency Reporting NA

4/17/2019 salesforce.com, inc. (NYSE:CRM) MapAnything, Inc. NA

4/9/2019 Clearlake Capital Group, L.P. Appriss Inc. NA

4/8/2019 Geotab Inc. BSM Technologies Inc. (TSX:GPS) $88.2

4/4/2019 Rock Solid Technologies, Inc. CitySourced, Inc. NA

4/4/2019 Granicus Firmstep NA

2/7/2019 Lexipol, LLC (The Riverside Company) Praetorian Digital NA

2/1/2019 Tyler Technologies, Inc. (NYSE:TYL) All The Assets of Civic Inc. $3.7

2/1/2019 Tyler Technologies, Inc. (NYSE:TYL) MicroPact Inc. $195.0

1/8/2019 Appriss Inc. Crime Finders, Inc. NA

1/8/2019 Paya, Inc. First Billing Services, LLC $57.5

1/8/2019 CentralSquare Technologies Lucity ***

12/13/2018 Rave Wireless, Inc. Swiftreach Networks, Inc. NA

12/10/2018 Tyler Technologies, Inc. (NYSE:TYL) SceneDoc Inc. NA

12/10/2018 Civica Trac Systems NA

12/10/2018 Apis Capital Management LLC Veritone, Inc. (NasdaqGM:VERI) $196.2

11/9/2018 Granicus Inc. Southtech Systems, Inc. NA

11/1/2018 LLR Partners Edmunds & Associates ***

10/29/2018 GeoDecisions, Inc. WorldView Solutions Inc. NA

10/12/2018 NEOGOV, Inc. High Line Corporation NA

10/9/2018 Passport NuPark NA

10/1/2018 Votem Corp. Everyone Counts, Inc. NA

10/1/2018 Tyler Technologies, Inc. (NYSE:TYL) MobileEyes Security Canada Inc. $5.3

9/28/2018 Avenu Insights & Analytics Conduent (Local and Municipal Constituent Gov't Soft. Solutions) NA

9/12/2018 GTY Technology Holdings Inc. (NasdaqCM:GTYH) Sherpa Government Solutions LLC $8.0

9/12/2018 GTY Technology Holdings Inc. (NasdaqCM:GTYH) Bonfire $108.0

9/12/2018 GTY Technology Holdings Inc. (NasdaqCM:GTYH) Citybase $160.0

GLC GovTech Transaction Database

$50MMedian EV

$120MAverage EV

4.4x4.7xMedian EV / Revenue Average EV / Revenue

$52MMedian EV

$235MAverage EV

83331Total Transactions Transactions w/ Multiples

*Transaction data includes GovTech M&A and recapitalization transactions involving software, tech services and other IT targets; *** = GLC proprietary information`

RECENT M&A AND FINANCING ACTIVITY

Source: S&P Capital IQ; 451 Group; GLC proprietary data; YTD through April 2019; (1) Includes proprietary data from GLC GovTech transactions as well as additional private GovTech software deals

6

GLC Proprietary GovTech M&A DataPrivate GovTech Software M&A Data (1)

Enterprise

Announced Acquirer Target Value

9/12/2018 GTY Technology Holdings Inc. (NasdaqCM:GTYH) eCivis $101.0

9/12/2018 GTY Technology Holdings Inc. (NasdaqCM:GTYH) Open Counter $28.0

9/12/2018 GTY Technology Holdings Inc. (NasdaqCM:GTYH) Questica $85.0

9/10/2018 Nuix Pty Ltd Ringtail Solutions, Inc. $55.0

8/31/2018 CentralSquare Technologies Aptean (Public sector and healthcare business) NA

8/31/2018 Tyler Technologies, Inc. (NYSE:TYL) CaseloadPRO, L.P $9.3

8/6/2018 Warburg Pincus LLC Procare Software, LLC NA

8/1/2018 CentralSquare Technologies Superion NA

8/1/2018 CentralSquare Technologies TriTech Software Systems NA

7/31/2018 Appriss Inc. HD Information, LLC NA

7/25/2018 FiscalNote, Inc. CQ Roll Call, Inc. $180.0

7/16/2018 GCR & Associates MB3 NA

7/10/2018 CivicPlus Inc. Virtual Towns & Schools ***

7/6/2018 Providence Equity Partners LLC; Greater Sum Ventures, LLC Value Payment Systems, LLC NA

6/6/2018 Accruent, LLC Maintenance Connection Inc. NA

6/5/2018 Municipal Code Corporation Municipal Code Online, Inc. NA

5/17/2018 Dude Solutions Paladin Data Systems NA

5/2/2018 Ontario Systems Justice Systems NA

4/30/2018 Tyler Technologies, Inc. (NYSE:TYL) Sage Data Security, LLC $11.5

4/30/2018 Tyler Technologies, Inc. (NYSE:TYL) Socrata $150.0

4/17/2018 Zuercher Technologies, LLC Metro Technology Services, Inc. NA

3/31/2018 Lumia Capital FiscalNote, Inc. NA

3/27/2018 Superion, LLC (nka: CentralSquare Technologies) Public Safety Corporation NA

3/13/2018 Granicus Inc. Assets and Operations of IQM2, Inc. NA

3/13/2018 Granicus Inc. IQM2 NA

2/14/2018 Granicus Inc. Vision Technology Solutions NA

2/9/2018 Clearlake Capital Group, L.P. Diligent Corporation NA

2/6/2018 Brentwood Associates Inc. Credentials Inc. NA

1/9/2018 HKW GCR Inc. $124.0

1/9/2018 NEC Corporation Northgate Public Services $644.0

1/4/2018 Securus Technologies Inc. GovPayNet NA

9/19/2017 Cartegraph Systems Pamlico ***

GLC GovTech Transaction Database

$50MMedian EV

$120MAverage EV

4.4x4.7xMedian EV / Revenue Average EV / Revenue

$52MMedian EV

$235MAverage EV

83331Total Transactions Transactions w/ Multiples

*Transaction data includes GovTech M&A and recapitalization transactions involving software, tech services and other IT targets; *** = GLC proprietary information`

RECENT M&A AND FINANCING ACTIVITY

7Source: S&P Capital IQ; 451 Group; GLC proprietary data; YTD through April 2019; (1) Includes proprietary data from GLC GovTech transactions as well as additional private GovTech software deals

GLC Proprietary GovTech M&A DataPrivate GovTech Software M&A Data (1)

CENTRALSQUARE<2012 2013 2014 2015 2016 2017 2018 2019

GEMS

Acquired January 2019

Ow

ner

ship

M&

A

CEO: Simon Angove$400M Rev

8,000 customers30 Products

2,000 employeesPublic safety

Public administration

Acquired May 2019

5

Sources: S&P Capital IQ, Pitchbook, GLC Research 8

8.2x

5.6x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19

Tyler Verticals

Tyler: Relative EV/ Revenue Trend

Enterprise Value to LTM Revenue Multiple by Software Sector

PUBLIC MARKETS: TYLER TECHNOLOGIES

Tyler Technologies, Inc. (NYSE: TYL) continues to tradeat a revenue multiple premium to the general softwaremarket (GLC software sector groups are comprised of89 publicly traded software companies), hoveringabove 8.0x EV / LTM Revenue. With the stock up 18%year-to-date, and coming on the heels of seven M&Atransactions (including Socrata in the data-as-a-servicesolutions space and MicroPact in the case and business

process management space), newly appointed CEO,Lynn Moore, is aggressively moving Tyler forward as theclear leader in the space. Lynn has been with TYL for 20years and has played a pivotal role in TYL’s corporatestrategy, including overseeing the Company’s M&Astrategy and execution. We believe TYL’s ability tosustain an EV / LTM Revenue multiple above 8.0x is astrong indicator of the market’s belief in GovTech’sprospects as a sector.

Tyler: Relative Share Performance

HQ: Plano, TX

President/CEO: Lynn Moore

Chief Strategy Officer: Bruce Graham

Chief Financial Officer: Brian Miller

Primary Industry: Software

Employees: 4,525

NYSE: TYL

Stock Price: $232.36

Market Cap: $8.9B

LTM Revenue: $950M+

LTM EBITDA: $200M+

Acquisitions: 23 in last

decade

8.2x

10.6x9.9x

9.1x 9.1x

6.9x 6.7x6.0x

5.6x5.1x

9.3x

7.8x8.6x 8.2x 8.1x

4.8x

6.1x

4.9x

7.1x

5.2x

Tyler HCM SaaS Sales &Marketing

Large Cap SupplyChain

Financial Security VerticalSoftware

ERP

Q1'19 Q1'18

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%


Tyler S&P 500

9Sources: S&P Capital IQ, Pitchbook, GLC Research

ShotSpotter: Relative EV/ Revenue Trend


PUBLIC MARKETS: SHOTSPOTTER

ShotSpotter: Relative Share Performance

HQ: Newark, CA

President/CEO: Ralph Clark

Chief Financial Officer: Alan Stewart

Founders: Jason Dunham / Robert Calhoun

Primary Industry: Security Software

Employees: 101

NASDAQ: SSTI

Stock Price: $46.65

Market Cap: $533M

LTM Revenue: $37M

LTM EBITDA: $2M+

Acquisitions: 1

12.1x

5.6x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

ShotSpotter Verticals

12.1x

10.6x9.9x

9.1x 9.1x

6.9x 6.7x6.0x 5.6x

5.1x

10.7x

7.8x8.6x 8.2x 8.1x

4.8x

6.1x4.9x

7.1x

5.2x

ShotSpotter HCM SaaS Sales &Marketing



ERP

Q1'19 Q1'18

-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

ShotSpotter S&P 500

Like Tyler Technologies, Inc., ShotSpotter (NAS: SSTI)is trading at a revenue multiple premium to the generalGLC software market, though the Company’s stock hasundergone recent turbulence on the heels of 2018 andearly in Q1’19. Despite recent fluctuations, which arelargely due to general market volatility in thetechnology sector, ShotSpotter is currently up over 50%YTD 2019. The ShotSpotter gunshot detection solutionis deployed in more than 90 cities and the companyrecently announced the launch of ShotSpotterMissions, a crime forecasting and patrol managementsoftware solution. ShotSpotter also recently announcedit had been selected to the GovTech 100 for the thirdconsecutive year. The GovTech 100 is an annual listcompiled and published by Government Technologymagazine to recognize 100 companies focused onmaking a difference in state and local governmentagencies across the United States.



PUBLIC MARKETS: NIC Inc.

Despite underperforming the S&P 500 index over the

last three years, NIC Inc. (Nasdaq: EGOV) remains astaple in the publicly traded GovTech landscape. NICInc. is currently sitting at a 2.8x Enterprise Value / LTMRevenue multiple and is trading at a 30% premium towhere it began 2019. Harry Herington, the company’spresident & CEO, has attributed recent financialsuccess to the company’s ability to act on its verticalstrategy and effectively expand its expertise in outdoorrecreation, health care, licensing & permitting, andpayment processing. With increased financial stability,Herrington also pointed to a more aggressive M&Astrategy as a focus to help bolster the company’svertical expansion. NIC recently completed theacquisition of Denver-based, Complia, which could bethe first of many for the relatively un-acquisitive NIC.Complia provides business licensing, patient/care giverregistration, and employee credentialing to thecannabis industry in the U.S.

NIC: Relative EV/ Revenue TrendNIC: Relative Share Performance

HQ: Olathe, KS

President/CEO: Harry Herington

Chief Financial Officer: Stephen Kovzan

Chief Operating Officer: Robert Knapp

Primary Industry: Tech-enabled Services

Employees: 920

NASDAQ: EGOV

Stock Price: $16.10

Market Cap: $1B

LTM Revenue: $343M

LTM EBITDA: $80M

Acquisitions: 1

2.8x

10.6x9.9x

9.1x 9.1x

6.9x 6.7x6.0x

5.6x5.1x

2.2x

7.8x8.6x 8.2x 8.1x

4.8x

6.1x

4.9x

7.1x

5.2x

NIC Inc. HCM SaaS Sales &Marketing



ERP

Q1'19 Q1'18

2.8x

5.6x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x


NIC Verticals

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%


NIC S&P 500


Acquisition Sector | GLC Landscape Category News

Procurement | Admin, Finance & Payments May 2019: GTY Technology Holdings Inc. (Nasdaq:GTYH) announced its Q1 2019

results. Per the Company, revenue growth was 17% over the prior year period on a

GAAP basis. Non-GAAP pro forma as adjusted revenue growth, which assumes the

business combination and other related transactions had taken place on January 1,

2018 and excludes the impact of purchase accounting, was 30% over the prior year

period. Q1 results: $7.9M in revenue and $4.7M in gross profit.

Feb 2019: Feb 2019: GTY Technology Holdings Inc., a publicly traded special purpose

acquisition company, announced the closing of its business combination between the

Company and six companies that are leading the digital transformation of the public

sector market.

Nov 2018: GTY Technology Holdings completes $552 million initial public offering.

Payments | Citizen-Facing, Admin, Finance &

Payments

Grants Management | Health & Human Services

Permitting | P&L/CD&R

Budgeting | Admin, Finance & Payments

Budgeting | Admin, Finance & Payments

HQ: Austin, TXChairman/CEO: Steve RohlederCFO: Harry YouDirectors: Bill Green, Joe TucciPrimary Industry: SoftwareEmployees: 338

NasdaqCM: GTYHStock Price: $9.75Market Cap: $473M2018 ARR: $34MRecurring: ~80% Gross Margin: 72%

$9.75

7.00

7.50

8.00

8.50

9.00

9.50

10.00

10.50

11.00

GTY Technology Holdings Inc. (NasdaqCM:GTYH) - Share Pricing

PUBLIC MARKETS: GTY TECHNOLOGY


2. Private Equity GovTech Portfolio Platforms

Platform(Date of Investment)

GovTech Sub-Sectors / Application Types

PE-Backer / Owner Recent Acquisitions

Asset management, licensing and permitting, citizen engagement, back office

•PublicStuff• Softright• Springbook

Public safety, GRC •Crime Finders, Inc.•Pharmitas•Optimum Technology

Finance, administrationCourts and justice

•Conduent’s local and municipal government software solutions businesses

Asset and operations management •N/A

Public safety, public administration •Combination of Superion, TriTech, Aptean State & Local businesses• Lucity, Tellus

Asset and operations management •N/A

Software applications, cloud services, and IT-enhanced outsourcing solutions

•Trac Systems

Web content management, parks and recreation software, citizen engagement, payments

•BoardSync•Virtual Towns & Schools•Rec1

Citizen engagement (elections) •N/A

Courts and justiceOffender case management

•N/A

Sep 2017

Jul 2015

Sep 2017

Oct 2016

Jul 2017

Jul 2017

Feb 2016

July 2018

Aug 2018

PRIVATE EQUITY GOVTECH PORTFOLIO PLATFORMS

Source: The 451 Group; S&P Capital IQ, GLC Research

May 2019

14




Licensing and permitting, GRC, courts and justice

•N/A

Facilities and asset management •EnergyCenter•Paladin Data Systems•Mobile311

Funding, budget, and project management •N/A

Finance, administration, and HR •Business Automation Services, Inc

Fire and EMS solutions •N/A

Emergency software solutions • Firehouse software (from Conduent)• eCore Software

Network search and information services to law enforcement

•COPLINK Suite of Products from IBM

Citizen engagement (communications) • Firmstep• SouthTech Systems•Vision Technology

Licensing and permitting, citizen engagement (elections)

•MB3 Technologies•PCC Technology

Courts and justice, GRC (regulatory compliance), payments

•nCourt

May 2019

Jan 2018

Jan 2017

Jul 2016

Oct 2017

Aug 2016

April 2019

Nov 2018


Mar 2018

May 2018

15Source: The 451 Group; S&P Capital IQ, GLC Research




Document and content management •N/A

Smart water infrastructure modeling and simulation software solutions

•N/A

Public safety policy and procedure manuals •N/A

Public safety policy and records management system, computer-aided dispatch

•N/A

Human resources •High Line Corp

• FirstNet Learning

Public safety, incident and security management

•360o Stay Safe• iView Systems

Public safety, communication/alerts in emergency situations

• Send Word Now•MIR3

Finance, administration, payments • Justice Systems

Parking, transportation, and transit management

•Complus Data Innovations •NuPark

Payments (motor vehicle, taxes, utilities) •N/A

Aug 2014

Jun 2016

Oct 2016

Nov 2016

Mar 2017

Nov 2016

/

Feb 2019

Mar 2012

Sept 2015


Mar 2019

Dec 2017





Procurement software solutions •BidSync

Civic engagement software platform •N/A

GRC (fraud detection / H&H Services) •N/A

Compliance, policy, and document management

•N/A

Health and human services • Cirrus Group• SchoolLeader• KidReports

911 and first responders emergency communication

•N/A

Campus and public safety solutions • Swiftreach Networks

Community development •Municipal Building Inspection Solutions• Independent Inspections

Electronic voting, election management, and election modernization solutions

•N/A

Health and human services •Community TechKnowledge

Dec 2014

Jun 2017

Jan 2018

Nov 2014

Apr 2017


Apr 2019

Aug 2018

May 2019

Aug 2018

Oct 2016





Parking management, permit management, enforcement, and citation services

•ParkingSOFT•CASE Parking•Digital Payment Technologies

Hosting and managed services •N/A

GIS, land management, utilities •AED-SICAD, Latitude Geographics Group, Geocomm, and Dynamic Design Group

Property tax appraisal software and services •N/A

Sep 2016

Feb 2016

Jul 2017


Nov 2008


3. GovTech Industry Overview

STATE AND LOCAL GOVERNMENT

Is a massive, evolving market that needs technology solutions to address

the growing gap between demanding constituent expectations and the

abilities of governments to quickly and efficiently address those it serves.

$100+ BILLIONEstimated U.S. State & Local Government

Software & IT Services Market

90,000+Local Government Organizations, Agencies,

and Departments in the U.S.

38,000+Special Districts

19,000+Cities

Townships

16,000+

12,000+School Districts

3,000+Counties

Source: e.Republic; GovTech Navigator; Gartner 20

2009First CTO of the United

States Appointed

30-40%of local government workersare eligible for retirement 1

~50%of U.S. states are facing

budget shortfalls

70%of residents indicated that

with more digital interactions available on their local government

website, they are more likely to interact 1

Do more with shrinking budgets and workforce

Increase efficiency when addressing routine requests

Increase transparency, e.g. f inancial, legislature, etc.

Better serve a fast-growing and diverse resident base

1 “Beating the Brain Drain: States Focus on Retaining Older Workers” - The PEW Charitable Trusts

Replace paper-based processes to reduce costs

Expose meaningful data and information to residents

Enable self-service and 24/7 government

Focus on long-term and strategic planning

`

Engage residents and foster a sense of community

Focus on value-added government services

Increasing Challenges for Local Governments

LOCAL GOVERNMENTS MUST DO MORE WITH LESS

21

TECHNOLOGY DEMAND DRIVERS

Source: e.Republic; GovTech Navigator; Gartner

• Citizen satisfaction and citizen-facing application growth driven by next generation 311

systems and portals that serve as vital links between citizens and their governments.

• Effective citizen engagement becoming increasingly critical to efficiently running

government.

• Overdue capital and technology investment requirements due to siloed and disparate

systems that are often antiquated and vulnerable to cyber breaches and a

preponderance of paper and spreadsheet-based record keeping.

• Improving decision making, augmenting talents of skilled workers, and automating tasks

that were previously regarded as impossible due to reliance on human knowledge and

experience is dramatically impacting the way governments do business.

• The way users expect to “consume” software has changed as a result of wireless

technologies, low-cost mobile computing, and internet connectivity.

• The rise of connectivity that enables superior monitoring and mass data collection to

support BI and analytics-driven decision making.

• Smart-city initiatives and planning.

• Long sales cycles mitigated by Cloud and “by-the-drink” ASPs.

• Cost optimization and technology modernization efforts are pushing government to the

Cloud.

1. Citizen Engagement

2. Digital Transformation and IT Modernization

3. Workforce Automation and Demographic Shifts

4. Mobile and Consumerization of Enterprise Software

5. Internet of Things (IoT)

6. Application Procurement and The Cloud

AREAS OF FOCUS

22

Transactional

• Pay utility bill

• Apply for a business license

• Register for an upcoming event

• Inquire about a marriage license

• Pay property taxes

• Report a damaged stop sign

• Apply for social services

• Track a recently incarcerated relative

• Report a stray dog

Community

• Research upcoming events

• Review county initiatives

• Research infrastructure spending

• Identify local voting facilities

• Access the strategic plan

• Access and review visitor guides

• Find city news

• Research affordable housing

Critical Services

• Physical security

• Infrastructure (power, water, roads)

• Courts, justice, and regulations

• Emergency (hospital, f ire, natural disaster)

• Health, human, and social services

• Community (events, gatherings, arts)

• Education services

Residents expect 24/7/365 digital government and for government to operate as efficiently and effectively as a private enterprise.

RISING RESIDENT EXPECTATIONS

23

TRANSPORTATION

• Intelligent Transportation System

• Computer-Aided Dispatch / Computer-Aided Engineering

• Enterprise Asset Management

• Driver's License

• Vehicle Registration

• Project Management

• Port Security

PUBLIC WORKS

• Geographic Information System

• Project Management

• Operations and Asset Management

• Computer-Aided Dispatch

• HR Systems

NATURAL RESOURCES

• Geographic Information System

• Permitting

• Environmental Systems

• Water Resources

• Forestry Management

• Land Management

• Hazardous Waste

CRIMINAL JUSTICE

• Computer-Aided Dispatch

• Records Management

• Compliance and training

• Mobile Data Terminals

• Crime Analysis Video Surveillance

• Next Generation 9-1-1

• Criminal Justice Information System

• Jail Management

• Inmate Tracking

• Jury Management

• Court Records Management Systems

• Court Automation

ADMIN & FINANCE

• Internal Tax Systems

• Financial Management

• Collections

• Purchasing

• Records Management

• HR Systems & Retirement

• 311

• Community Development

HEALTH

• Case Management

• Integrated Eligibility

• Fraud Detection

• Child Welfare

• Child Care

• Child Support

• Unemployment Insurance

• Workers’ Compensation

• Medicaid

• Women, Infants, and Children

• Health Insurance

• Disease Surveillance

• Electronic Health Records

• Health Information Exchange

HUMAN SERVICESPUBLIC SAFETY

A fragmented landscape with disparate decision-making processes is an opportunity for some vendors and a challenge to others. Agency-specific offerings (Parks & Rec or Asset/Operations Management, for example) are largely sponsored by the user, but must still go through procurement, while more general or broadly used offerings (portals or websites, for example) can have a variety of decision-makers in the process.

AGENCIES AND RESPONSIBILITIES

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GLC ADVISORS

Representative Technology M&A and Capital Raise Transactions:

35+ Professionals

500+ Closed Transactions

$379B+ Transaction Value

GLC Advisors & Co. is a leading independent investment banking advisory f irm, delivering objective, senior-level expertise to successfully execute financial advisory assignments for our clients.

HealthcareTechnology Financial Services Business Services Industrials Consumer / Retail

Industry Specific Advisory Focus:

GLC Advisors & Co.GLC Advisors & Co.

> > >

NEW YORK805 3rd Ave.

20th Floor

New York, NY 10022

212-542-4540 (main)

DENVER1512 Larimer St.

9th Floor

Denver, CO 80202

303-479-3840 (main)

SAN FRANCISCO

451 Jackson St. 2nd Floor

San Francisco, CA 94111

415-400-2320 (main)

Adam T. HaynesManaging Director

[email protected]

Jim C. WilliamsDirector

[email protected]

David J. BluthManaging Director

[email protected]

GLC Tech Leaders

Offices

Recapitalization Acquired ByGrowth Investment Acquired ByGrowth Investment

Representative transactions completed by GLC professionals while at GLC and other firms

Acquired ByGrowth Investment

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glc govtech market snapshot - recapitalization advisors... · 2019-06-19 · glc expects...

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