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Warburg Pincus and Carlyle Announce Agreement to Sell NEOGOV to EQT and CPP Investments

1. Carlyle (NASDAQ: CG) announces NEOGOV's sale to EQT and CPP Investments. 2. NEOGOV supports nearly 10,000 public sector organizations in HR solutions. 3. Carlyle has deep industry expertise and manages $453 billion in assets. 4. The sale reflects NEOGOV's strong growth and market position. 5. Completion of the transaction is pending customary conditions.

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FAQ

Why Neutral?

The sale of NEOGOV might not significantly affect Carlyle’s immediate financial performance, given Carlyle's diversified portfolio and strong asset management. Previous exits from similar high-growth technology investments often provide stable returns but do not result in immediate price spikes for the parent firm.

How important is it?

The article details a strategic divestment by Carlyle, which can impact market perception but does not drastically alter Carlyle's financial outlook. Such M&A activities indicate operational strategy but require further context to assess overall impact.

Why Short Term?

Any immediate market reactions to the sale will likely settle quickly, primarily reflecting ongoing investor confidence in Carlyle’s strategy rather than long-term structural changes.

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Sale reflects NEOGOV's industry-leading position in purpose-built government HR and compliance software solutions, providing an essential service to public-sector agencies , /PRNewswire/ -- Funds managed by Warburg Pincus LLC, the pioneer of global growth investing, and global investment firm Carlyle (NASDAQ: CG) today announced the signing of a definitive agreement to sell NEOGOV ("the Company"),a provider of HR and compliance software for U.S. public sector agencies, to EQT X fund ("EQT") and Canada Pension Plan Investment Board ("CPP Investments"). 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. "During our nine-year partnership with NEOGOV, the company has meaningfully scaled its platform, expanded its product suite, and delivered consistent top-line growth while deepening its commitment to serving public sector and education customers," said Brian Chang, Managing Director, Warburg Pincus. "We are proud to have supported Shane and the NEOGOV team through a period of strong innovation and strategic execution, and we are confident that NEOGOV is well-positioned to continue to thrive and expand," added Vishnu Menon, Managing Director, Warburg Pincus. Warburg Pincus is one of the most active growth investors in enterprise technology and cloud-based platforms and has invested more than $36 billion in technology companies since inception, such as Avalara, Businessolver, Clearwater Analytics, Crowdstrike, Experity, Infoblox, Modernizing Medicine, Net Documents, Procare, Varicent, and Vermont Information Processing.  "It's been a privilege to support NEOGOV alongside Warburg Pincus during a period of strong growth and innovation. Shane and the team have built a platform that plays a critical role in helping public sector agencies serve their communities more effectively. We're confident NEOGOV is well positioned for continued success with EQT and CPP Investments," said Steve Bailey, Partner at Carlyle. "We are deeply thankful to Warburg Pincus and Carlyle for their guidance and unwavering support. Their partnership has been instrumental in driving our growth and impact," said Shane Evangelist, CEO of NEOGOV. 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 LLP served as legal counsel to NEOGOV. Jefferies LLC served as exclusive financial advisor and Ropes & Gray served as legal counsel to EQT and CPP Investments. About Warburg Pincus Warburg Pincus LLC is the pioneer of private equity global growth investing. A private partnership since 1966, the firm has the flexibility and experience to focus on helping investors and management teams achieve enduring success across market cycles. Today, the firm has more than $87 billion in assets under management, and more than 220 companies in their active portfolio, diversified across stages, sectors, and geographies. Warburg Pincus has invested in more than 1,000 companies across its private equity, real estate, and capital solutions strategies. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com or follow us on LinkedIn. About Carlyle Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across its business and conducts its operations through three business segments: Global Private Equity, Global Credit and Carlyle AlpInvest. With $453 billion of assets under management as of March 31, 2025, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,300 people in 29 offices across four continents. Further information is available at www.carlyle.com. Follow Carlyle on X @OneCarlyle and LinkedIn at The Carlyle Group. About NEOGOV Founded in 2000 and headquartered in El Segundo, California, NEOGOV is a leading provider of cloud‑based human‑capital and compliance‑management software purpose‑built for the public sector. Its integrated Recruit, Develop, and Manage suite automates every stage of the employee lifecycle—streamlining recruitment, onboarding, talent development, payroll, time & attendance, and policy management for government agencies. Today, more than 10,000 state, local government, and higher education organizations nationwide rely on NEOGOV to attract, hire, develop, and retain talent while staying compliant. The company also operates GovernmentJobs.com—the nation's largest public sector job board—and includes brands such as PowerDMS and NEOED that extend its platform into public safety and education markets. For more information, visit www.neogov.com. Media Contacts Warburg Pincus Kerrie Cohen Managing Director, Corporate Communications [email protected] Carlyle Brittany Bensaull Global Head of Corporate Communications [email protected]  NEOGOV Scott Jensen Vice President of Marketing [email protected] SOURCE Warburg Pincus WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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