Arlington Capital Partners has agreed to sell MicroPact Inc to Tyler Technologies. No financial terms were disclosed. Spurrier Capital Partners provided financial advice to MicroPact on the transaction while Sheppard Mullin served as legal adviser. Based in Herndon, Virginia, MicroPact is a provider of case management and business process management applications for government.
Arlington Capital Partners (“Arlington Capital”) today announced that Tyler Technologies, Inc. (NYSE:TYL | “Tyler Technologies”) is acquiring its portfolio company MicroPact, Inc. (“MicroPact” or the “Company”), a leading provider of specialized, vertically oriented case management and business process management (BPM) applications for government.
Founded in 1997 by CEO Kristoffer Collo, MicroPact was formerly known as MicroPact Engineering and since 2012 has operated as MicroPact through several affiliated entities. Arlington Capital originally acquired Iron Data Solutions, LLC in 2011 which was combined with MicroPact in 2015. The Company is based in Herndon, Va. and employs 469 people.
“We are very happy to join forces with Tyler Technologies, the clear leader in public sector software technology with an outstanding company culture focused on excellence in all things, including client-centric service,” said Collo. “Tyler and MicroPact share a common vision and passion for transforming government by empowering organizations with solutions that create efficiencies and abilities to quickly solve difficult problems.”
Michael Lustbader, a Managing Partner at Arlington Capital, said “MicroPact has invested heavily in its product portfolio during our ownership, ultimately achieving market leadership in strategic verticals within the public sector case management software market. Through its innovative technology and knowledge of the government marketplace, the Company is uniquely positioned to expand Tyler’s addressable market while also introducing an additional product portfolio to its core customer base.”
Dan Smith, the CFO of MicroPact, said “Under Arlington Capital, MicroPact established itself as a market leader by expanding its customer base, growing its differentiated technologies and integrating its product portfolio after the strategic merger with Iron Data. The partnership with Tyler Technologies will unlock key opportunities for MicroPact, including augmented sales reach, additional customer touchpoints, enhanced software utilization and accelerating a promising partner program.”
Malcolm Little, a Principal at Arlington Capital, said “Tyler’s acquisition of MicroPact, combining two leading public sector software providers, represents another example of Arlington’s use of transformative M&A to build strategically valuable businesses.”
Spurrier Capital Partners served as exclusive financial advisor to MicroPact. Sheppard Mullin served as legal advisor to MicroPact.
For nearly four decades, MicroPact and its predecessors have focused on engineering commercial off the shelf (COTS) solutions for the public sector. Today MicroPact solutions serve 98% of U.S. states, 97% of federal agencies with 500 or more employees, and enjoy a 97% annual renewal rate. MicroPact, the passion and technology that’s transforming government.
About Arlington Capital Partners
Arlington Capital Partners is a Washington, D.C.-area private equity firm that has managed $2.2 billion of committed capital via four investment funds. Arlington Capital focuses on middle market investment opportunities in growth industries, including: government services and technology, aerospace/defense, healthcare, and business services and software. Arlington Capital invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their company’s position as leading competitors in their field.
About Tyler Technologies
Tyler Technologies (NYSE: TYL) is a leading provider of end-to-end information management solutions and services for local governments. Tyler partners with clients to empower the public sector – cities, counties, schools, and other government entities – to become more efficient, more accessible and more responsive to the needs of their constituents. Tyler’s client base includes more than 15,000 local government offices in all 50 states, Canada, the Caribbean, Australia, and other international locations. Forbes has included Tyler on its “Best Small Companies” list eight times, and ranked Tyler on its “Best Midsize Employers” list in 2018. Tyler Technologies is headquartered in Plano, Texas.