Fast forward to today, and gov tech is among the hottest sectors in technology. The third quarter of 2025 was one for the record books, where our internal analysis suggests $7.8 billion of transaction volume, up from $6.1 billion in the prior quarter, and more than three times the $2.4 billion from Q3 2024. Year-to-date, total transaction value is a whopping $17 billion through Q3 2025, dramatically outpacing the $13.2 billion we saw in 2021, with still a quarter to go and many large deals completed that have yet to be announced.
Accordingly, gov tech is officially having its best year yet and will easily eclipse $20 billion in deal value for 2025, making it the busiest year on record.
- There continues to be a need among private equity investors to return capital.
- Gov tech businesses from that “vintage” have performed well because of the post-COVID-19 bump in growth and the funding and legislation that accelerated modernization.
- The broader private equity community has increasingly pursued a thesis in gov tech because of its resilient characteristics and strong performance in recent years.
Put more simply, private equity firms needed to sell businesses to return capital to their investors, and gov tech companies had overwhelmingly met their growth plans and saw an overwhelming amount of interest from buyers, making them logical candidates for exits. Those businesses that decided to test the market in the first half of the year were met with fast sale processes and near-record valuation multiples.
As a result (much like in 2021), the second half of the year has been marked by many businesses pursuing exits ahead of their planned timeline, driven by the perception that a “window” is open in gov tech. Valuations are higher and buyer interest is at record levels, prompting many gov tech businesses that had been considering a transaction in 12 to 18 months to pursue a transaction sooner. This has set in motion a “flywheel” of great deals at high valuations, catalyzing even more activity.
It’s been a remarkable year in gov tech, and we do not see any signs of the market slowing down any time soon.
THE BIG DEALS
EQT and CPP Investments to Acquire NEOGOV
Why It Matters: EQT and CPP Investments have agreed to acquire NEOGOV, a provider of HR and compliance software for public agencies, in a transaction reportedly valued at more than $3 billion. Serving nearly 10,000 organizations, NEOGOV’s cloud-native platform supports the full employee life cycle and helps agencies drive efficiency and stay compliant. The deal underscores investor conviction in the modernization of government workforce systems, a foundational layer of the public-sector technology stack, and reflects growing focus on platforms digitizing core administrative functions across state and local government. Backed by two globally recognized investors, NEOGOV is positioned to accelerate product innovation, including AI-driven capabilities, and further expand its footprint across the public sector.
First Due Raises $355M
Why It Matters: First Due, a leading all-in-one software platform for public safety agencies, has raised a $355 million strategic minority growth investment led by JMI Equity with participation from TCV and continued backing from Serent Capital. The funding marks one of the largest gov tech growth rounds to date and underscores investor confidence in AI-driven public safety technology as a mission-critical component of government operations. Powering more than 3,000 agencies across the U.S. and Canada, including major municipalities and federal departments, First Due delivers an integrated suite spanning fire, EMS, hospital and law enforcement operations. The investment will accelerate platform development, talent expansion and AI-enabled product innovation as First Due continues to modernize how agencies prepare for, respond to and manage emergencies.
OTHER NOTABLE DEALS
Axon to Acquire Prepared
Why It Matters: Axon has agreed to acquire Prepared, an AI-powered emergency communications platform that transforms 911 calls into actionable intelligence, extending Axon’s public safety ecosystem from call to closure. Prepared’s technology consolidates audio, text, video, GPS and real-time translation into a single interface used by more than 1,000 agencies across 49 states. The acquisition highlights the rapid adoption of AI in public safety and unites Axon’s connected hardware and digital evidence management capabilities with Prepared’s next-generation dispatch technology. Together, the companies aim to redefine how agencies capture, analyze and act on information in the critical first moments of an emergency.
Civica Acquires OLM Systems
Why It Matters: Civica has acquired OLM Systems, a UK-based provider of cloud-native social-care management software, further strengthening its position as a leading gov tech partner to local authorities. The deal adds OLM’s flagship ECLIPSE platform, used to manage both adult and children’s services, to Civica’s portfolio, enabling councils to handle complex caseloads, automate workflows and improve outcomes for vulnerable citizens. With ECLIPSE, Civica now offers the UK’s most modern end-to-end social-care solution, complementing its existing systems across housing, revenues, finance and regulatory services.
Via Transportation Raises $493M in IPO
Why It Matters: Via, an Israeli developer of public transportation management software, raised $493 million in its IPO at a $3.7 billion valuation, marking one of the largest gov tech-related listings in recent years. The company’s cloud-based platform enables cities and transit authorities to modernize fixed-route systems with dynamic, data-driven operations that reduce costs and improve the passenger experience. Operating in hundreds of cities across 30 countries, Via has become a global leader in smart mobility infrastructure.
PSTrax Receives Strategic Investment From Level Equity
Why It Matters: PSTrax, an asset and inventory management platform for fire, EMS, law enforcement and military agencies, has received a strategic growth investment from Level Equity to accelerate innovation and expand market reach. Trusted by more than 1,350 agencies and 100,000 users, PSTrax centralizes mission-critical operations, spanning vehicles, equipment, controlled substances and blood products, into a single, cloud-based system. The partnership will fuel new product development, deeper integrations and greater automation across station operations.
Gravity Acquires coUrbanize
Why It Matters: Gravity, a platform for public-sector reporting and compliance, has acquired coUrbanize, which specializes in community engagement software for local governments. The acquisition creates a unified platform that combines financial reporting, budgeting and public engagement, helping agencies meet new 2026 Americans with Disabilities Act (ADA) mandates and rising transparency expectations. coUrbanize brings built-in translation, ADA compliance and multichannel feedback tools that turn resident input into actionable insights directly linked to government budgets and plans. The deal strengthens Gravity’s position as a category leader in connected financial management, empowering governments to publish ADA-compliant reports, engage communities more inclusively and set a new standard for accessibility and accountability in public-sector transparency.
GTCR Acquires Innovative Systems
Why It Matters: GTCR has acquired Innovative Systems, a leading OSS/BSS and payments platform serving regional broadband providers, from Alpine Investors. The acquisition builds on GTCR’s track record investing in vertical market software, telecommunications infrastructure and payments technology companies, with representative investments such as Lexipol, Point Broadband and Worldpay. As part of the firm’s operational strategy, it appointed Scott Alcott, former CIO of Comcast, as CEO to lead Innovative Systems through its next phase of growth. Innovative Systems’ integrated platform streamlines operations and billing, reducing the costs and complexities associated with integrating and maintaining disconnected point solutions. The transaction underscores accelerating consolidation across mid-market OSS/BSS vendors.
CENTEGIX Receives Growth Investment From Charlesbank
Why It Matters: CENTEGIX, a provider of innovative workplace safety solutions, has received a growth investment from Charlesbank. CENTEGIX is the center for layered safety plans and initiates the fastest response time for emergencies at the workplace, serving more than 15,000 locations and protecting over 15 million people. This investment will support key growth initiatives, including funding for product innovation and the expansion of go-to-market capabilities to drive continued growth across the K-12 sector, as well as health care, government and commercial end-markets.
GovOS, Avenu and ITI Become Neumo
Why It Matters: A hallmark transaction in the recent wave of gov tech M&A has been the formation Neumo, the merger of GovOS, Avenu Insights & Analytics and ITI. The newly formed company ranks among the largest integrated gov tech providers serving local, state and federal governments, delivering a comprehensive suite of cloud-based solutions that modernize operations across public administration, DMV services, revenue compliance, justice and integrated payments. Paul Colangelo, formerly CEO of Avenu, will lead the combined company as CEO. Backed by Arlington Capital Partners, Neumo aims to capture operational and product synergies across its complementary software offerings while emphasizing user-centric functionality to drive adoption. The creation of Neumo underscores the accelerating consolidation of the gov tech landscape as agencies seek unified, cloud-enabled platforms to streamline workflows and enhance constituent engagement.
Versaterm Gains Minority Backing From Permira
Why It Matters: Activity in the public safety software market continues to pick up as agencies replace legacy systems with interoperable, data-rich platforms that improve transparency and operational efficiency. Against this backdrop, Versaterm, a major provider of public safety software, received a strategic minority investment from Permira, joining Banneker Partners in backing the company. Versaterm provides an end-to-end public safety platform centered around its core CAD and RMS offering, as well as solutions in evidence management, forensics, school safety, drone deployment, first responder wellness and community engagement. Permira’s investment will enable Versaterm to continue to grow through a proven M&A strategy and reinforce its position as a leading public safety platform.
Carbyne Raises $100M
Why It Matters: Carbyne, a leading developer of cloud-based software for emergency call centers, has raised $100 million from a group of strategic investors including AT&T Ventures, Axon Enterprise, Cox Enterprises and Global Medical Response. Carbyne’s platform is deployed across nearly 300 emergency centers in 23 U.S. states and six countries, enabling more than 7,000 dispatchers to manage incidents with real-time data, video and location intelligence. The new capital will support continued R&D, hiring and global expansion as Carbyne scales its AI-driven APEX platform.
Tyler Acquires Emergency Networking
Why It Matters: Tyler Technologies has acquired Emergency Networking, a software-as-a-service provider of cloud-native software for fire and EMS agencies, further expanding its public safety suite at a pivotal moment. With all U.S. fire and EMS departments required to transition from the National Fire Incident Reporting System to the new National Emergency Response Information System (NERIS) by Jan. 1, 2026, Emergency Networking is among the first solutions to meet the new compliance standards. The acquisition strengthens Tyler’s position as the most comprehensive provider of public safety software, spanning law enforcement, fire and EMS, and enhances its ability to support agencies with NERIS-ready reporting, analytics and operational tools.
