Vista Equity is evaluating the sale of government software provider Granicus after a four-year hold, four sources familiar with the situation told PE Hub.
William Blair is advising the company on its sale, the people said. The process is well into its second round and has accepted bids from multiple sponsors, one of the sources said.
It’s unclear if K1 Investment Management, a minority investor in the company, will be exiting alongside Vista.
Granicus, based in Denver, Colorado, provides cloud-based software tools and digital engagement services for the public sector. Its offerings include meeting and agenda management, web-site design, document storage and management, communication, and operations automation.
Granicus generated $140 million in 2019 revenue alongside $55 million to $60 million in EBITDA, the sources said.
Some software companies are poised to see a pick-up in demand as the world starts to reopen after the global shutdown. The value of software assets the likes of Granicus – with its technology tailored to the public sector – are enabling remote work and more efficient workflow. That acceleration in growth is likely to be reflected by higher deal multiples, sources said.
Vista is looking to command a valuation north of 20x EBITDA, which would translate into at least $1 billion in deal value.
Vista invested in Granicus in August 2016, when it acquired a majority stake from K1 Investment Management.
As part of that deal, K1 retained a minority position in the company.
Following Vista’s investment, Granicus merged with GovDelivery, a digital communications tool that allows the government to construct email, social media and SMS messages for citizens.
Vista has helped Granicus scale through several other add-ons, including the company’s acquisitions of Firmstep and Host Compliance in 2019, and SouthTech Systems in 2018, among others.
Vista Equity declined to comment. William Blair, Granicus, and K1 did not return PE Hub’s requests for comment.
Action Item: Read about another active tech sale process on PE Hub.