Transaction overview
CORE Business Technologies (US) acquired eGov Strategies LLC (US), an Indiana-based provider of payment and web solutions, on February 1, 2021. The exact value of the deal was not disclosed but is known to include a full equity stake in eGov Strategies.
Deal structure and financing
The transaction's financial details are undisclosed, including the split between equity and debt. Banneker Partners acted as the buy-side advisor for CORE Business Technologies on this acquisition. Specific leverage metrics or any lock-up terms imposed on the seller were not mentioned. There is no information available regarding whether the sellers retained any stake in CORE Business Technologies post-acquisition.
Strategic context
The rationale behind CORE's acquisition of eGov Strategies revolves around expanding its offerings to enhance digital services for local and state governments, aligning with its existing portfolio that includes revenue management and consumer engagement solutions. The deal is part of a broader strategy by CORE to unify technology platforms aimed at delivering more efficient constituent experiences.
Alan Pyrz, Co-Founder of eGov Strategies, highlighted the synergy in values and complementary products between his company and CORE Business Technologies as key factors for the transaction. Both firms share an objective to drive successful client outcomes through integrated payment acceptance and website management solutions tailored for government entities. The acquisition also bolsters CORE's geographic footprint and capacity to serve a wider range of public sector clients.
Regulatory path
The regulatory approval process for this deal was not detailed in the provided information. Given the nature and scale of CORE Business Technologies' operations, it is likely that antitrust regulators in the United States were involved in reviewing the transaction. However, no specific remedies or conditions imposed by regulators are mentioned. The exact jurisdictions reviewed and their respective timelines remain unknown due to a lack of disclosure from both parties involved.