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NEOGOV Merging with PowerDMS for Compliance Software

By combining one company’s expertise in human resources and the other’s in regulatory compliance, both companies hope to gain new government clients and compete in an increasingly paperless world.

Documents in a filing cabinet
<a href="" target="_blank">Shutterstock/jdwfoto</a>
The software company NEOGOV, which makes human resources solutions for government, is adding document management and compliance tools to its products through a merger with PowerDMS, according to a news release this week.

Based in Southern California, NEOGOV makes software to help government agencies handle HR functions such as recruiting, hiring, training, performance management, payroll, benefits and attendance. The merger will expand NEOGOV’s product lineup to include software from PowerDMS that helps customers conform to regulations around transparency, training, accreditation, liability and other things. The news release said both businesses will be operated by NEOGOV, whose CEO Shane Evangelist will lead the combined entity.

"The addition of PowerDMS to the NEOGOV family is a natural fit,” Evangelist said in a statement. “It increases our core offering and deepens our expertise around procedure and policy management, which will ultimately enable us to modernize more of the vital systems that serve our citizens.”

Both close to 20 years old, NEOGOV and PowerDMS have an established footprint in their respective markets. Founded in 1999, NEOGOV serves more than 6,000 government organizations. According to Crunchbase, this is the company's third acquisition in four years, after FirstNet Learning in 2017 and the Canadian company High Line in 2018.

Founded in 2001, PowerDMS counts more than 4,000 customers in both private and public sectors, mostly in health-care, government and commercial industries. Like Evangelist, PowerDMS CEO David DiGiacomo said in a statement that the merger is meant to make both companies more competitive in a growing market for software that streamlines common processes and reduces paperwork.

"Delivering transformative cloud-based solutions that automate and scale complex processes needed to run local government is at the heart of what both companies do well,” he said. “By expanding its offering to include the products of PowerDMS, NEOGOV is well-positioned to continue our success and further increase a combined footprint in the public sector."

Andrew Westrope is managing editor of the Center for Digital Education. Before that, he was a staff writer for Government Technology, and previously was a reporter and editor at community newspapers. He has a bachelor’s degree in physiology from Michigan State University and lives in Northern California.
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