Investor interest in the GovTech sector has exploded in recent years, with record activity over the last 24 months as sponsors with a recently developed GovTech thesis compete for assets against well-capitalized PE-backed and public strategics. We believe that this type of activity will be a major force in shaping the GovTech market in the years ahead and will likely accelerate as other businesses expand their strategic M&A targeting across an up-and-coming class of high-growth GovTech newcomers.
Very few businesses of true enterprise scale have been built in the public sector; mature GovTech leaders remain a fraction of the size of equivalent private sector firms. Many best-of-breed tools continue to exist as point solutions, creating a credible acquisition thesis for buyers looking to build an end-to-end platform, particularly given prolific regional fragmentation and the relatively late arrival of institutional capital to GovTech. Further, we continue to see “growthier” businesses in the market, in large part enabled by the emergence of high-velocity, inside-sales driven SaaS business models vs. the traditional direct-selling models of old. Across virtually every segment of the market, we are seeing more and more high-growth SaaS businesses.
Over the past 5 years we have advised on more than 30 deals representing over $12Bn in deal value. Our recent work includes advising on many of the largest transactions – major strategic deals and new private equity platforms – in both public administration and public safety. Beyond transaction activity, we are committed to thought leadership in the GovTech market as we continue to update and refine our market landscapes and provide insights into key trends unfolding across GovTech.