Granicus, GovDelivery Announce Merger

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Leading Cloud Solutions Providers Combine to Redefine Government-Citizen Interactions

Granicus, the leading provider of software solutions to improve government efficiency and transparency, and GovDelivery, the leading cloud-based digital communication platform for government, today announced that the two companies will merge effective immediately.

By coming together, the combined entity will better serve its more than 3,000 public customers at the local, state and federal levels in improving their efforts to communicate, promote transparency, and transform the citizen experience. Priorities will include driving integration between products, increased investment in government-focused cloud software solutions, and growing a world-class team of government digital experts. Together, GovDelivery and Granicus will be the largest provider of cloud solutions to government in North America and the United Kingdom.

The merger is majority backed by Vista Equity Partners, a leading private equity firm focused on software, data, and technology-enabled businesses, which recently announced acquisitions of GovDelivery and Granicus. Previous Granicus majority shareholder K1 Investment Management continues to support the combined business as a minority shareholder.

“Governments are confronting a rapidly changing world with increasing expectations from citizens,” said GovDelivery CEO Scott Burns. “We have long admired Granicus as a leader in serving government and know that combining these two companies will create a powerful partner in helping connect government and citizens in meaningful ways.”

As the largest provider of cloud-based communications solutions to the public sector, GovDelivery enables its 1,800 customers to reach more than 120 million citizens. GovDelivery also owns GovLoop.com, the premier knowledge network for government employees, connecting more than 250,000 public sector workers. Granicus, the largest provider of legislative and public meeting management software, serves 40 of the 50 largest U.S. cities – including nine of the top 10 – among its over 1,200 clients.

“The opportunity to work with our clients to redefine how governments and citizens interact, ultimately supports the decision-making process within government, leading to better outcomes for communities,” said Granicus CEO Jason Fletcher. “We are excited about our ability to create an industry leader that will have a profound impact on the government-citizen experience.”

Numerous public sector agencies already use services from both companies, with the City of Oakland, Calif., being one of the most extensive users. City Clerk LaTonda Simmons, who has spearheaded the implementation of technology solutions to engage the citizenry of Oakland, noted her excitement surrounding the two companies coming together.

“The City of Oakland – with the citizen interest that we have in our legislative process, along with our own commitment to advancing transparency and citizen engagement – sees this as an amazing partnership,” Simmons said. “It [the merger] will continue to help us mobilize interest in a number of areas, most notably the decision-making process. We can appreciate not just being able to advance awareness, but more importantly effectively drive more citizens to participate in those decisions that affect the quality of their lives.”

The combined company will employ 375 employees with plans to continue the strong growth experienced by both companies, and will maintain operations out of offices in Denver, Colo.; St. Paul, Minn.; Washington D.C.; and Crawley, U.K.

“Granicus and GovDelivery together will be uniquely positioned to drive more engaged citizens, informed decisions and better outcomes by delivering further innovation around their already robust solutions that enable communication and interactivity between government institutions and their constituents,” said Patrick Severson, Principal at Vista Equity Partners. “The combined company will be able to better serve all levels of city, state, federal, school, and special district customers in the U.S. and throughout Europe.”

The companies will continue to operate independently through 2016, with the primary focus over the coming months on merger planning and maximizing opportunities to bring additional value and benefit for customers.

About Granicus

Granicus provides the industry’s leading cloud-based solutions for government efficiency and transparency, with software that helps more than 1,200 organizations and 63,000 government staff members streamline their workflows and establish more meaningful connections with citizens — online, over social networks and on mobile devices. In 2015, the Center for Digital Government’s Best of the Web winners named Granicus a critical partner to their online success. Granicus’ solutions include live webcasting of public meetings and video archival, complete agenda and legislative management software, and tools for automating boards and commissions’ management processes, land and vitals records management, as well as in-meeting mobile solutions for elected officials and online feedback platforms for citizens. Additionally, Granicus provides a website content management system built specifically for government. For more information, please visit http://www.granicus.com.

About GovDelivery

GovDelivery empowers government to create better lives for more people. More than 1,800 organizations worldwide use the GovDelivery platform and network to inform and engage over 120 million people. GovDelivery is the only digital marketing platform built exclusively for public sector organizations in order to promote usage of services, enhance public awareness, and increase the contributions and involvement of citizens in communities. For more information, visit http://www.govdelivery.com. Follow the company on Twitter @GovDelivery or on Facebook.

About Vista Equity Partners

Vista Equity Partners, a U.S.-based private equity firm with offices in Austin, Chicago and San Francisco, with more than $26 billion in cumulative capital commitments, currently invests in software, data and technology-based organizations led by world-class management teams with long-term perspective. Vista is a value-added investor, contributing professional expertise and multi-level support towards companies realizing their full potential. Vista's investment approach is anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions, and proven management techniques that yield flexibility and opportunity in private equity investing. For more information, please visit http://www.vistaequitypartners.com.

About K1 Investment Management

K1 is an investment firm focusing on high-growth enterprise software companies across North America. K1 seeks to help dynamic businesses achieve successful outcomes by identifying and executing organic and acquisition-based growth opportunities that position its companies as industry leaders. K1 typically invests alongside strong management teams that continue to guide their organizations on a day-to-day basis. K1’s investments vary in the level of ownership in order to meet the needs of entrepreneurs and managers. For more information, please visit http://www.k1capital.com.

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Michael Ashford
Granicus
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Madeline O'Phelan
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