GovDelivery Agrees To $153M Purchase Deal To San Francisco Firm
GovDelivery, a digital communication firm used by more than 1,800 government offices around the country, is being sold to Vista Equity Partners for $153 million.
Scott Burns, the CEO and founder of St. Paul-based GovDelivery, said in a news release that Vista’s purchase agreement is “the largest investment in a cloud-based government technology company to date.”
Since the company’s creation in 2000, Burns has led GovDelivery in its development of tools and services aimed toward government agencies. Almost every federal department, as well as agencies on a state, county and city level utilize GovDelivery’s technology to communicate with constituents.
St. Francisco-based Vista Equity Partners, which claims to be the largest technology investor in the world, said it found “extraordinary value” in GovDelivery’s services.
“What sets GovDelivery apart is its success helping governments reach more people through its platform,” said Patrick Severson, a principal at Vista. (According to GovDelivery, its services are used to reach an audience of more than 120 million citizens.)
Vista will purchase GovDelivery from Actua Corporation, a Radnor, Pennsylvania-based cloud company that bought the company for $19 million in 2009. Since then, GovDelivery said its revenues have increased by nearly 600 percent.
The government communications firm told the Star Tribune it is expecting revenue of $40 million this year, which is $5 million more than what it earned during its last fiscal year.
About $15 million of the $153 million deal will be split between Burns and his 225 employees. The rest will be paid to Actua.
The transaction for GovDelivery is expected to close later this year.