NEOGOV Pulls More Private Equity Money, Eyes Acquisitions

The company, which makes HR, payroll and other types of software for the public sector, has made at least three acquisitions since it took an initial private equity investment in 2016. Now it's taking on more.

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NEOGOV, which makes HR, payroll and other software for government agencies, has received a new infusion of private equity money as it looks to continue buying up other companies.

The funding comes from Warburg Pincus, which is re-upping after its first investment in NEOGOV in 2016, as well as the Carlyle Group. In a press release, the company said it will be looking to expand into new products and markets, including through mergers and acquisitions.

Since the 2016 investment, NEOGOV has acquired at least three other businesses: the workforce training company FirstNet Learning, the HR software maker High Line Corp. and compliance technology vendor PowerDMS.

"Over the past four years of our partnership, NEOGOV has grown into a clear market leader in public-sector HR and law enforcement accreditation and exhibits best-in-class metrics across growth and client retention,” said Warburg Pincus Managing Director Vishnu Menon in the statement. “As the demand for SaaS-based systems focused on HR solutions grows, we continue to see significant growth opportunity for NEOGOV.”

The companies involved aren’t disclosing how much they invested.
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