Tyler Technologies to acquire NIC
In a huge government technology deal, Plano, Texas-based Tyler Technologies Inc. and Olathe, Kan.-based NIC Inc. have announced they have entered into an agreement where Tyler will acquire all outstanding shares of NIC in an all-cash transaction valued at approximately $2.3 billion. The terms of the transaction have been unanimously approved by the boards of directors of both companies.
Tyler provides integrated software and technology services to the public sector, with its end-to-end solutions empower local, state and federal government entities to operate more efficiently and connect more transparently with their constituents and with each other. NIC is a leading digital government solutions and payments company, serving more than 7,100 federal, state and local government agencies across the nation, delivering user-friendly digital services that make it easier and more efficient for citizens and businesses to interact with government.
“The pandemic has accelerated the shift by governments to online services and electronic payments as more citizens and businesses are interacting digitally with government. NIC is uniquely positioned with its deep expertise and robust digital solutions to partner with us in making government more efficient and more accessible to citizens,” said Lynn Moore, Tyler’s president and CEO. “Our companies share a vision for thriving, connected communities, and our cultures are extremely compatible. The combination will provide extensive benefits for the clients, employees, and shareholders of both companies.”
Harry Herington, NIC’s CEO and chairman of the board, added: “This announcement marks an exciting next chapter in our 30-year history, and one that we believe will create significant value for our government partners, employees, and stockholders. The combined vision, strength and resources of our companies will accelerate our collective ability to provide innovative, efficient, transparent services to local, state and federal governments. With this transaction, we are pleased to be able to deliver immediate, premium cash value to our stockholders and we look forward to NIC’s continued success as part of Tyler.”
According to the joint announcement, the combined company expects to significantly expand its business with federal agencies and leverage Tyler’s sales channels and client base to enhance NIC’s scale and accelerate its strategy of bringing vertical applications to clients. In addition, NIC has extensive expertise and scale in the government payments arena, processing more than $24 billion in payments on behalf of citizens and governments in 2020, which will accelerate Tyler’s strategic payments initiatives. NIC will continue to manage its operations from its Olathe home office and to retain its employees and leadership team.
The transaction is subject to the satisfaction of customary closing conditions, including regulatory approvals and approval by NIC’s stockholders, and is expected to close in the second quarter of 2021.