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EQT and CPP Investments to acquire NEOGOV, a provider of HR and compliance software for U.S. public sector agencies, from Warburg Pincus and Carlyle

1. EQT and CPP Investments are acquiring NEOGOV, enhancing public sector HR solutions. 2. NEOGOV serves over 10,000 public agencies with cloud-native HR software. 3. Acquisition aims to advance product innovation and AI capabilities for efficiency. 4. EQT and CPP’s expertise will support NEOGOV’s growth and expansion. 5. Transaction completion is expected in coming months, pending approvals.

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FAQ

Why Bullish?

The acquisition signals strong growth potential for NEOGOV, reflecting a broader trend in the software industry, similar to past successful acquisitions like Salesforce's purchase of Slack, which drove significant stock appreciation.

How important is it?

As an investment in public sector software, this acquisition underscores the potential for significant future gains, reminiscent of trends in sector-focused acquisitions that often lead to higher valuations.

Why Long Term?

The strategic partnership aims for sustained growth and innovation in HR technology, which could enhance NEOGOV's market position over the long term.

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The EQT X fund ("EQT") and Canada Pension Plan Investment Board ("CPP Investments") have agreed to acquire NEOGOV, which serves over 10,000 public sector agencies with purpose-built government HR and compliance software solutions NEOGOV's cloud-native solutions support the full employee lifecycle and help public sector agencies drive efficiency and stay compliant with local policies and regulatory frameworks EQT and CPP Investments will partner with CEO Shane Evangelist and the management team to accelerate growth and expansion, building upon their track records in the US software sector , /PRNewswire/ -- EQT announced today that the EQT X fund ("EQT") together with Canada Pension Plan Investment Board ("CPP Investments") have agreed to acquire NEOGOV (the "Company") from funds managed by Warburg Pincus and Carlyle. Founded in 2000 and headquartered in El Segundo, California, NEOGOV delivers purpose-built human capital management and public safety solutions to nearly 10,000 public sector organizations across North America. NEOGOV's cloud-native suite supports the full employee lifecycle – from recruitment and onboarding to performance management and compliance management – while helping agencies stay compliant with local policies and regulatory frameworks. "Local governments are the backbone of our communities. Our mission is to help them operate more efficiently and serve citizens more effectively. EQT and CPP Investments share our vision and bring the experience and capital to help us scale faster," said Shane Evangelist, CEO of NEOGOV. "Our priorities include advancing product innovation and AI capabilities to help public sector agencies drive increased efficiency and compliance adherence. EQT and CPP Investments' deep expertise in software and broad network of advisors will be instrumental to supporting NEOGOV's growth." "We are excited to partner with Shane and the NEOGOV team, who are operators at the highest levels. The team brings a deep understanding of the challenges that public sector agencies face, and we're proud to support a company that has earned such trust in the public sector," said Arvindh Kumar, Partner and Co-Head of EQT's Global Technology Team. Tyler Parker, Managing Director in the EQT Private Equity advisory team, added: "It's rare to find a software company that is so well-loved by its customers, and we look forward to partnering with NEOGOV to continue to modernize public sector operations and deliver impactful technology to those on the front lines of civic service." "NEOGOV is a leading software platform with distinct customer offerings that is poised for growth due to increasing demand from its customers across North America. Together with its strong management team, the Company is a good fit for our strategy to invest in high-quality software companies. We look forward to supporting the Company in this next phase of development alongside EQT and the management team," said Sam Blaichman, Managing Director, Head of Direct Private Equity, CPP Investments. With this transaction, EQT X is expected to be 60 – 65 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication). The transaction is subject to customary conditions and approvals and is slated for completion in the coming months. Moelis & Company LLC served as exclusive financial advisor and Willkie Farr & Gallagher served as legal counsel to NEOGOV. Jefferies LLC served as exclusive financial advisor and Ropes & Gray served as legal counsel to EQT. Contact EQT: EQT Press Office, [email protected]           CPP Investments: Asher Levine, Public Affairs & Communications, [email protected], T: +1 929 208 7939NEOGOV: Scott Jensen, Vice President of Marketing, [email protected] This information was brought to you by Cision http://news.cision.com https://news.cision.com/eqt/r/eqt-and-cpp-investments-to-acquire-neogov--a-provider-of-hr-and-compliance-software-for-u-s--public-,c4211980 The following files are available for download: SOURCE EQT WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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