Jeff Cook, Shea & Co.
In many ways, the market seems to be taking a breath after a busy first three quarters and is gearing up for an active 2025. Currently there are not many deals actively “in market,” but many conversations around being “ready” to engage in conversations as the calendar turns to 2025. Said differently, the pause we are starting to see is not disconcerting, but rather a prelude to the next wave of consolidation that will begin in earnest as we get into 2025. We expect a slow Q4 but anticipate that activity is going to ramp up meaningfully in the new year.
The volume metrics above and transactions below are for deals announced between July 1, 2024, and Sept. 30, 2024.
THE BIG DEALS
Cloudpermit Receives Investment from The Riverside Company
Why It Matters: Community development, specifically licensing and permitting, continues to be one of the largest and most attractive gov tech markets, fueled by increasing demand for fast and intuitive cloud solutions as an alternative to inefficient paper or legacy systems. This rings true particularly in the mid-market (sub-150,000 population centers), where a large greenfield opportunity exists for first-time technology adoption. Cloudpermit, a market-leading community development software provider, focuses on this segment and has seen tremendous growth and adoption within it. This growth resulted in an investment from The Riverside Company, a global investment firm that has been an active gov tech investor for the past decade. Cloudpermit offers innovative solutions for building permitting, inspections, licensing, planning and zoning and code enforcement, all within a single, highly configurable, cloud-based platform. The investment will support the company’s continued growth and innovation, including new product initiatives such as enhanced building information modeling, artificial intelligence solutions and public works functionality.
OTHER NOTABLE DEALS
Why It Matters: The growing complexity of global threats and operational disruptions is driving demand for more integrated and proactive incident management solutions. In response, Motorola Solutions acquired Noggin, a global provider of cloud-based business continuity and critical event management software. Noggin’s platform helps enterprises and critical infrastructure vendors effectively manage incidents and improve operational resilience. The acquisition strengthens Motorola’s portfolio of emergency coordination solutions, supporting a more proactive approach to safety and security amid growing global challenges. Motorola Solutions has completed more than 20 acquisitions in the past five years and continues to be an extremely acquisitive public safety platform.
Granicus Acquires Simpleview
Why It Matters: Systematic M&A remains a critical component of Granicus’ growth, journey and leadership momentum as the company eclipses its 14th acquisition since the GovDelivery merger in 2016. Granicus, the nation’s leading provider of cloud-based citizen engagement technologies and services, has acquired Simpleview, a premier provider of CRM, CMS and digital marketing solutions for more than 1,000 destinations worldwide. This acquisition enhances Granicus’ ability to offer a more holistic, data-driven view of communities, helping civic leaders engage stakeholders, attract visitors and drive economic growth in their communities. The combination will deliver insights that foster community investment, local business vitality and tourism development through the merger of Simpleview’s destination marketing expertise and Granicus’ Government Experience Cloud.
Schneider Geospatial Acquires Systems Development Group
Why It Matters: The increasing need for geocentric solutions in local government is driving acquisitions as organizations seek to improve property record management amidst the broader citizen engagement space. Schneider Geospatial, one of the nation’s largest providers of GIS-based SaaS solutions, has acquired Systems Development Group (SDG), a leading provider of geocentric property record and analysis solutions. This acquisition strengthens Schneider’s parcel management portfolio by integrating SDG’s popular Image Mate Online platform, positioning Schneider to be a clear parcel leader with a strong right to win. Serving more than 1,000 local government clients across 34 states, the combined company will bolster its ability to provide public access to real property information and improve support for local governments. The deal marks Schneider’s fourth add-on under Align Capital Partners, which invested in the company in 2022.
ImageTrend Acquires FlowMSP
Why It Matters: The integration of pre-incident planning tools is becoming increasingly essential for fire and emergency services that rely on data-driven solutions for improving operational efficiency and incident response. ImageTrend, a leader in data analysis and intelligence solutions for fire and EMS, has acquired FlowMSP, known for its fast and efficient pre-incident planning platform. This aligns with ImageTrend’s strategic goal of becoming the leading end-to-end software provider for fire and EMS, offering enhanced tools to transform data into actionable insights. The combination will streamline operations for roughly 500 fire service customers, enabling more informed and efficient incident responses, and marks the first add-on since Welsh, Carson, Anderson & Stowe invested in 2023.
GardaWorld Acquires OnSolve
Why It Matters: The intensification of global security threats and crisis management demands is making the integration of advanced, AI-driven risk management solutions crucial for organizational resilience and efficient operations. GardaWorld has completed the acquisition of OnSolve, a leading provider of critical event management and mass communication solutions. OnSolve will be integrated into GardaWorld’s Crisis24 business, creating one of the most advanced platforms for managing risks and critical events. This acquisition enhances Crisis24’s ability to provide real-time, hyperlocal intelligence and proactive risk mitigation, strengthening the platform’s SaaS-based capabilities and allowing enterprises, governments and mid-market businesses to navigate increasingly complex challenges with greater agility and security.
Everbridge Acquires Infinite Blue
Why It Matters: The increasingly unpredictable risk landscape is prompting organizations to seek comprehensive solutions that ensure operational resilience and minimize disruptions. Everbridge, a global leader in critical event management and public warning solutions, has acquired Infinite Blue, a provider of business continuity software. This acquisition enhances Everbridge’s platform, integrating Infinite Blue’s technology to offer an end-to-end solution for automating and streamlining incident planning, response and recovery. The combined solution empowers organizations to minimize disruption, ensure operational resilience and recover quickly from critical events, further reinforcing Everbridge’s leadership in enterprise resilience.
Prepared Raises $27M
Why It Matters: Public safety continues to attract considerable growth capital. Prepared, a provider of emergency dispatch technology that helps drive efficiency and accuracy for data processing, raised a $27 million Series B funding round led by Andreessen Horowitz. The new financing will primarily be used for product development and go-to-market efforts, especially focused on next-gen technologies like AI and machine learning. This investment is yet another sign that there is a large modernization cycle that will support public safety vendors’ ability to sustain long-term growth. Institutional investors remain excited and are actively looking for opportunities to invest in this market, and funding remains strong, driven by the high-profile cases of violence across the U.S. as well as increasing demands for compliance and transparency in law enforcement.
With Raises $10M
Why It Matters: Within the broader public administration space, both community and citizen engagement continue to be among the most attractive subsectors in gov tech, operating in segments that fall within the purview of city managers and clerks, which manage critical functions responsible for fostering greater visibility and trust between citizens and government officials. With, a U.S.-Israeli community engagement company, raised $10 million in seed funding. Participants in the round included Boaz Amiti, Tal Ventures, Iron Nation, Unicorn Technologies, Ariel Maislos and Yuval Bar Gil. The capital will be used for North American expansion efforts as well as further improving product capabilities through cutting-edge technologies such as AI. Today, With works with more than 100 cities across the U.S., Canada and Israel.
RapidSOS Acquires eDispatches
Why It Matters: As mentioned, public safety continues to be an incredibly active market as organizations continue to modernize legacy systems and invest in improving access to critical services. Founded in 2012, RapidSOS, a leading emergency response platform that focuses on providing real-time data to first responders, has acquired eDispatches, a communications provider that delivers audio and CAD dispatch notifications. This transaction highlights a major public safety trend — the increasing drive to get contextual data into the hands of emergency responders to make more informed decisions and improve emergency response times. eDispatches specializes in providing a modern solution for emergency dispatch notifications which provides faster reach and better coordination, elevating public safety agencies’ preparedness, visibility and understanding of the situation and response plan.
Convergint Acquires Esscoe
Why It Matters: The security and life safety sectors are experiencing heightened demand for integrated, technology-enabled solutions as operational resilience emerges as a major priority. Convergint, a global leader in service-based systems integration, has acquired Esscoe, a prominent provider of mission-critical security and fire and life safety systems in the greater Chicago and Midwest regions. This acquisition expands Convergint’s service capabilities across key verticals, including education, finance, utilities, health care and government, while adding more than 80 employees. By leveraging Esscoe’s long-standing reputation and expertise, Convergint aims to strengthen its market position and accelerate growth across the Midwestern U.S., further enhancing its ability to deliver innovative security and life safety solutions.
Accela Acquires OpenCounter
Why It Matters: The growing demand for modernizing public administration processes, particularly in permitting and licensing, is driving gov tech companies to consolidate and offer more comprehensive solutions. Accela, one of the largest state and local government technology providers, has acquired OpenCounter, known for its innovative permitting and licensing software. This acquisition strengthens Accela’s offerings by integrating OpenCounter’s step-by-step online portals, which streamline the process of obtaining permits and licenses for residents and businesses. The acquisition will reduce administrative burdens and improve customer satisfaction by offering a more intuitive, user-friendly experience.
Benchmark Analytics Receives Strategic Growth Investment from PSG Equity
Why It Matters: The public safety sector is seeing increasing demand for data-driven solutions that enhance workforce performance, accountability and operational transparency. Benchmark Analytics, a SaaS-based platform aimed at improving workforce performance and reducing risk for public safety agencies, has received a strategic growth investment from PSG Equity. Co-founded by former police officers and public service leaders, Benchmark Analytics uses machine learning and data science to drive digitization and provide personnel and risk management solutions. This investment aligns with PSG’s focus on partnering with high-growth software companies and supporting the continued modernization of public safety agencies.
Lexipol Acquires LEFTA Systems
Why It Matters: Public safety organizations are seeking more integrated and data-driven solutions to improve training and accountability, leading companies to increasingly combine their expertise to meet these demands. Lexipol, a leading provider of policy, training and wellness support for public safety and local government, has acquired LEFTA Systems, a top provider of field training and performance reporting software. This acquisition marks a major step in Lexipol’s effort to offer an integrated solution for public safety performance management. Combining Lexipol’s expertise with LEFTA’s data analytics capabilities will provide law enforcement agencies with real-time insights, predictive tools and enhanced training solutions.
Altor Acquires F24
Why It Matters: The increasing need for crisis management and business resilience solutions is driving consolidation and growth in the industry as organizations seek comprehensive, scalable tools to manage disruptions. Altor has signed an agreement to acquire a majority stake in F24, a leading European SaaS provider for crisis management and business resilience. F24’s management will reinvest, and Hg will retain a minority stake in the company. This partnership positions F24 for accelerated growth and expansion into new markets, leveraging its digital solutions in emergency notification, crisis management and governance to support more than 5,200 customers worldwide.
