GTY Closes Six Acquisitions Targeting State, Local Government Digital Transformation

GTY Technology Holdings has closed its acquisition of six small SaaS and cloud software solution providers and is ready to combine their capabilities in a move to help state and local governments with their digital transformation.

The six companies acquired by Las Vegas-based GTY over the past six months or so represent a wide range of capabilities aimed at helping state and local governments provide better services to their constituents, said Harry You, GTY’s co-founder, president, CFO and director.

The six companies include Bonfire, a developer of strategic sourcing and procurement technology to support vendor life cycles; CityBase, which provides digital interactivity with utilities and government agencies; eCivis, which helps government agencies apply for and manage grants and budgets; Open Counter, which offers user-friendly technology for permitting and licensing; Questica, which develops budget preparation and management software; and Sherpa, a provider of public sector budgeting software and consulting services.

[Related: Joe Tucci’s GTY To Pay Up To $497M Buying 6 Firms In Gov-Tech Push]

The six companies combined provide cutting-edge government-focused technology for SaaS and cloud applications, You told CRN. Collectively, GTY is expecting to see well over 100 percent growth in combined revenue between 2018 and 2019, he said.

"They are all in fast-growing markets," he said. "There are lots of cross-selling opportunities between the six. We feel we've picked the best of the best."

The company has a combined client base of nearly 2,000 clients, You said.

GTY, whose founders also include Joe Tucci, the former chairman and CEO of EMC, and William Green, former chairman and CEO of Accenture, is focused on state and local governments as well as utility customers because of the unique opportunity that market offers, You said.

"This is the last sector in North America to digitize," he said. "Penetration of the cloud in this market is under 2 percent. It's the best opportunity for us for the next couple years. …. The greatest investments are the ones that are contrarian. We have no real competitors. The fundamental competition is a combination of pencil and Excel spreadsheets."

You said he does not rule out the possibility that GTY will enter the federal government business some day, but such a move, should it happen, would not be for a few years.

In the meantime, GTY, which has solid funding, is definitely open to further acquisitions, You said. "We're open to other companies with complementary offerings to those of our six companies, or which offer tactical opportunities," he said. "This sector is seeing explosive growth."

Liz Fischer, chief marketing officer for Chicago-based CityBase, said her company was focused on digitizing payments and services to help state and local governments become more personal and more responsive to the needs of their constituents.

"We've been doing this for five years," Fischer told CRN. "We know our clients well. These are people in governments who want to provide higher levels of services. We're making it easier for residents to interact with their local governments."

State and local governments offer many opportunities for the right solution providers to help them enhance their services for local communities, Fischer said. And those opportunities for CityBase have suddenly grown as part of GTY.

"We see it as an opportunity for enormous growth," she said. "Over the last five years, we honed our products and grew to know our clients. But GTY brings us a bigger reach. There are a lot of government agency and utility personnel who know they need better solutions to provide better services, but they have not had access to those solutions. As part of GTY, we can bring them those solutions."