Blackstone, the world's largest alternative asset manager, has announced a definitive agreement for private equity funds managed by its affiliates to acquire Civica, a global leader in public sector software solutions, from Partners Group. While financial terms remain undisclosed, the deal underscores Blackstone's strategic move to bolster its presence in the government technology (GovTech) space.
Founded in 2001, Civica has evolved into one of the UK's largest software companies, specializing in software solutions for the public sector. The company provides mission-critical automation and streamlining technology services to a diverse range of clients, spanning local, central, and federal governments, health and social care providers, and education. Civica's product portfolio includes workflow and automation, risk and compliance, workforce management, financial management, and data analytics and insights.
Crucially, the acquisition aligns with Blackstone's focus on the growing GovTech sector, driven by the ongoing digitalization of the public sector and substantial investments by governments to enhance technology capabilities and services. Civica boasts over 6,000 customers, serving more than 100 million citizens globally across the UK, Ireland, Australia, New Zealand, India, Singapore, the United States, and Canada. The company has gained recognition for its high customer retention rates and benefits from robust recurring revenues.
Jonathan Murphy, a Managing Director at Blackstone, highlighted Civica's leadership in the GovTech space, expressing excitement about partnering with the company's stellar management team for the next phase of growth. The investment reflects Blackstone's commitment to software expertise, particularly in the UK, building on its strong track record of investments in the sector.
Civica's Chief Executive Officer, Lee Perkins, emphasized the company's aspiration to be a GovTech champion, providing software that meets the evolving needs of citizens and those serving them. Perkins noted the significant transformation achieved in partnership with Partners Group, fostering growth momentum across cloud, digital enablement, software innovation, and data analytics. The acquisition marks the next chapter in Civica's journey, leveraging over two decades of growth.
The transaction, subject to regulatory approvals, is expected to close in Q2 2024. Barclays served as the lead financial advisor for Blackstone, with DC Advisory as the secondary financial advisor. Partners Group received advisory support from Clifford Chance and Arma Partners. With Travers Smith and Wyvern Partners advising the management, Arma Partners served as Civica's sole financial advisor.
Blackstone's strategic acquisition of Civica underscores the increasing importance of technology in public sector operations and services. As governments worldwide continue their digitalization efforts, investments in GovTech solutions are positioned for further growth, making this acquisition a strategic move for Blackstone in an evolving landscape.
