Tyler Technologies to acquire digital gov solutions and payments firm NIC
US-based software company Tyler Technologies has agreed to acquire NIC Inc., a Kansas-based digital government solutions and payments company listed on NASDAQ as EGOV, in an all-cash transaction worth around $2.3 billion.
NIC caters to over 7,100 federal, state, and local government agencies across the US.
The company provides digital services for making it easier and more efficient for citizens and businesses to interact with the government.
NIC is said to enable government agencies in quickly delivering new digital solutions for providing essential services to citizens and businesses.
In fiscal year 2020, the digital government solutions and payments company earned revenues of $460.5 million and net income of $68.6 million.
In 2020, NIC had processed over $24 billion in payments on behalf of citizens and governments.
Commenting on Tyler Technologies acquisition of NIC, Lynn Moore – Tyler Technologies president and CEO said: “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.
“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.”
According to Tyler Technologies, its strength in local government and the strength of NIC in state government are highly complementary.
The combination of the two companies is expected to considerably grow its business with federal agencies. The combined firm will utilize Tyler Technologies’ sales channels and client base to improve NIC’s scale and fast track its strategy of bringing vertical applications to clients.
As per the terms of the deal, NIC shareholders will be paid $34 per share in cash. This represents a premium of around 22% to the company’s 30-day volume weighted average price as of 9 February 2021.
Harry Herington – NIC CEO and chairman of the board, commenting on Tyler Technologies acquisition of NIC, said: “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.”
The deal, which is subject to approval by NIC’s shareholders, regulatory approvals and other customary closing conditions, is expected to be wrapped up in Q2 2021.