The quarter was slower than anticipated, largely because transactions that might come to market in late 2024 or early 2025 overwhelmingly decided to wait until 2025. Our internal analysis suggests total Q4 deal volume reached $1.3 billion, down from the $2.4 billion in Q3 2024 and $2.2 billion in Q2 2024.
In aggregate, 2024 deal volume finished at $9.5 billion, making 2024 the second-most-active year in the five years of writing this column.
2024 was a solid year that set the stage for an even more active 2025, as detailed in my recent column analyzing 2024 and outlining some predictions for 2025. In many ways, Q4 2024 was the calm before the storm. We knew deal volume would be down (probably not to the extent it was), with many sellers deciding to wrap the year and deliver a strong Q4 before undertaking transaction processes in the first quarter of 2025.
Accordingly, our expectations for 2025 volume have increased, as the backlog grew because sellers decided to wait until the new year. Already, we are seeing a pronounced uptick in volume, giving us even more confidence that 2025 is poised to set new records for gov tech.
The volume metrics above and transactions below are for deals announced between Oct. 1 and Dec. 31, 2024.
THE BIG DEALS
Axon Acquires Dedrone
Why it Matters: First announced in Q2 and completed in Q4, Axon acquired Dedrone, an AI/machine learning (ML)-enabled command and control platform that serves commercial, government and military users. The addition of Dedrone will strengthen Axon’s ability to help customers safeguard their communities, improve responses to critical incidents and optimize protection. Axon, a global leader in public safety technology, has recently reignited its M&A engine. The Dedrone acquisition follows the acquisition of Fusus in May 2024, a cloud-based video analysis platform with situational awareness and investigative capabilities. Look for Axon and other public safety consolidators to be increasingly active in 2025 as the market continues to heat up.
OTHER NOTABLE DEALS
Raptor Technologies Acquires SmartPass
Why it Matters: K-12 remains an active sector as schools face increasing pressure to strengthen safety standards and integrate technology into classrooms. Raptor Technologies, a leader in school safety solutions, has acquired SmartPass, a digital hall pass system used by thousands of schools across the U.S. This acquisition expands Raptor’s comprehensive safety platform by integrating student movement management into its offerings, which already include crisis prevention, emergency response and recovery. By combining SmartPass with its product portfolio, the acquisition provides schools with a unified platform to enhance safety, reduce disruptions and promote better student outcomes, highlighting Raptor’s continued commitment to meeting the evolving needs of K-12 education.
Civica Acquires Loop Software
Why it Matters: The education sector is increasingly relying on digital tools to streamline operations, enhance engagement and foster collaboration in school communities. Civica, a global gov tech leader, has acquired Loop Software and its core product, Daymap, a learning and teaching management solution trusted by more than 150 schools. Daymap offers critical features including attendance tracking, communication, scheduling and parent portals, helping schools reduce administrative workloads and improve classroom engagement. By integrating Daymap with Civica’s school management platform, this acquisition reinforces Civica’s commitment to delivering comprehensive, end-to-end solutions that empower educators, students and parents while driving operational efficiency and community connectivity.
Unanet Acquires GovPro AI
Why it Matters: In the increasingly competitive government contracting environment, businesses face increasing challenges with the cost and complexity of responding to federal RFPs. Unanet, a leading provider of ERP and CRM solutions for the government contracting and AEC industries, has acquired GovPro AI, an AI-powered proposal writing platform that streamlines the RFP process. GovPro’s platform enables firms to produce high-quality first drafts of proposals in just a few hours, reducing response time by 70 percent and cutting costs in half. This acquisition strengthens Unanet’s business development offerings, empowering customers to identify opportunities, manage pipelines and generate proposals more efficiently. Unanet plans to expand on GovPro AI’s technology into the AEC market in 2025.
FYLD Raises $10M
Why it Matters: Federal infrastructure investments and the growing demand for real-time fieldwork solutions are driving innovation in the utility and construction sectors. FYLD, a United Kingdom-based provider of an AI-powered fieldwork platform, has raised $10 million to accelerate its expansion into North America, including the U.S., where it plans to partner with key municipalities. The platform equips field managers with real-time, data-driven insights to proactively address challenges such as lead pipe replacement and vegetation management. This funding positions FYLD to play a pivotal role in modernizing field operations, delivering improved outcomes for stakeholders and capitalizing on opportunities created by federal infrastructure initiatives.
Motorola Solutions Acquires 3tc Software
Why it Matters: M&A has been the primary means of expansion for large incumbent public safety vendors, with the ultimate goal of building end-to-end platforms addressing the full spectrum of customer needs. Motorola Solutions continues to be an extremely acquisitive public safety platform, having acquired 3tc Software, a provider of control room software solutions for emergency services, particularly focused on streamlining and improving the efficiency of emergency call handling and dispatching. This acquisition expands Motorola’s portfolio of command center solutions, with an added focus on the fire and rescue services segment. M&A will remain a critical component of Motorola’s growth story going forward.
Derq Receives Strategic Investment
Why it Matters: Derq, an AI-based traffic safety company, has received a strategic investment from Emirates Telecommunications Group Company and AT&T Ventures. Founded in 2016, Derq aims to use AI and connected vehicle technology to monitor traffic patterns, anticipate potential risks and send alerts to drivers to help improve road safety and prevent car accidents. The new financing will primarily be used for North American expansion efforts as well as product development and accelerated growth in intellectual property. Investors remain optimistic about backing this market, especially as there has been a notable increase in funding available for infrastructure and intersection safety solutions. Today, Derq has 25 projects operating in 16 states.
ForceMetrics Raises $22M
Why it Matters: ForceMetrics, a public safety data and analytics platform that provides first responders with real-time information to better inform decision-making, raised a $22 million Series A round led by the Hobson Lucas Family Foundation. The capital will be used for product expansion efforts as well as increasing the head count of engineers and other necessary personnel. This investment highlights a long-term public safety trend that has catalyzed purchasing decisions — the volume of data and records collected has increased exponentially resulting in data collection becoming an integral part of policing. ForceMetrics aims to modernize the data collection process and bring contextual data into the hands of law enforcement to deliver real-time, actionable insights.
GardaWorld Acquires Stealth Monitoring
Why it Matters: Public and private safety technology continues to be an incredibly active market over the past year, catalyzed by growing investor and strategic interest in multiple subsectors across the market. The opportunity in remote video monitoring is massive as many less mature, asset-intensive end markets still rely primarily on dated or services-based offerings. GardaWorld, a global security services company acquired Stealth Monitoring, a leading provider of live, remote video surveillance and monitoring services in North America. This acquisition will support GardaWorld’s ECAMSECURE platform by providing advanced AI-powered video monitoring and security solutions to effectively help improve response time and deterrence, allowing systems to proactively identify potential threats before they escalate. The Stealth Monitoring acquisition follows GardaWorld’s acquisition of OnSolve in Q3 2024.
Flock Safety Acquires Aerodome
Why it Matters: Flock Safety, an Atlanta-based public safety technology company, has acquired Aerodome, a Los Angeles-based firm known for its drone-as-a-first-responder technology. This acquisition brings Aerodome’s leading drone and remote piloting solutions into Flock Safety’s platform and expands its offerings beyond license plate reader systems and visual detection products. Aerodome’s solutions will enhance Flock Safety’s public safety platform by adding aerial capabilities, providing real-time situational awareness for first responders. The acquisition also underscores the growing importance of integrating drones into law enforcement operations to improve surveillance, monitoring and emergency response. Flock Safety is positioning itself at the forefront of the trends that are set to define the future of public safety technology, combining ground and aerial data to deliver an end-to-end solution for law enforcement agencies.
Neighborly Software Receives Investment from Falfurrias Management Partners
Why it Matters: Falfurrias Management Partners, a Charlotte-based investment firm, has made a significant growth investment in Neighborly Software, a software-as-a-service (SaaS) platform that manages the enrollment, administration and reporting of government-funded programs. Since its founding in 2016, Neighborly has served more than 400 customers, including city governments, state governments, housing authorities and nonprofit organizations. To date, the Atlanta-based company has managed $13 billion in grant disbursements, processed 7.2 million applications and overseen 1,500 unique projects. With this investment, Neighborly is positioned to accelerate its product development, enhance its sales and marketing efforts, and pursue geographic expansion. Private equity continues to be a driving force in the gov tech market.
CivicPlus Acquires PASS Cost-Recovery Solutions from ePRepSolutions
Why it Matters: CivicPlus, a leader in government SaaS, acquired PASS Lite software and PASS cost-recovery consulting services from ePRepSolutions. The acquired products will help CivicPlus’ local government customers manage and optimize their parks and recreation departments, improving cost-recovery operations to drive greater revenue. Local government parks and recreation departments have seen an uptick in demand since the pandemic, as outdoor activities rapidly grew in popularity, creating a greater need for modern technology solutions. Consequently, parks and recreation became one of the most active subsectors in the government technology market in 2024, with several key transactions, including Providence Equity Partners’ investment in Brandt Information Services and Macquarie Capital’s acquisition of Kalkomey.
