The company described the deal with Gauge Capital as a recapitalization in a press release, implying a financial restructuring. However, SDL leaders also spoke about the move as an investment that will support growth.
“With additional resources to invest in product development and sales and marketing, while maintaining our focus on delivering an excellent customer experience, this partnership will benefit our current and future customers significantly,” said SDL Vice President Jack Flood in the statement.
Private equity investments often portend fast growth for gov tech companies, and have become more common in the past year. Gauge’s portfolio hasn’t had a particular emphasis on gov tech investments, but has included a range of bets including food and health-care firms.
SDL is a long-standing company, having launched in 1997. It has particular strength in its home state of New Jersey, but has been expansion-minded in recent years as it launched new services such as mobile apps and civic engagement. In 2019 it made its first corporate acquisition when it merged with New Jersey-based municipal website builder GovSites.
