NEOGOV Set to be Acquired by EQT and CPP Investments

Deal News | Jul 28, 2025 | PR Newswire Cision EQT

EQT and CPP Investments have announced their agreement to acquire NEOGOV, a prominent HR and compliance software provider to the U.S. public sector, from Warburg Pincus and Carlyle. The deal emphasizes NEOGOV's extensive reach, with solutions provided to over 10,000 public agencies, and its commitment to empowering local governments in compliance and efficiency. Situated in El Segundo, California, NEOGOV's offerings aim to modernize and enhance public sector operations. The acquisition aligns with EQT and CPP Investments' strategy to bolster high-quality software entities, leveraging their wealth of experience in the software domain. The planned completion of this acquisition further positions EQT X Fund with a significant portion of its investments realized. The agreement, pending customary approvals, was facilitated by financial advisors Moelis & Company for NEOGOV and Jefferies for EQT.

Sectors

  • Information Technology
  • Human Resources
  • Private Equity & Investment

Geography

  • United States – NEOGOV serves over 10,000 public sector agencies across the U.S., making the geography crucial to its operations.
  • North America – NEOGOV is headquartered and provides services across North America, highlighting its operational geography.
  • Canada – CPP Investments, a Canadian entity, is part of the acquisition process.
  • Sweden – EQT is a Swedish private equity firm, involved as a primary buyer in the transaction.

Industry

  • Information Technology – NEOGOV provides software solutions, primarily HR and compliance tools, indicative of the broader IT classification.
  • Human Resources – NEOGOV specializes in HR management software tailored for public sector agencies, positioning it firmly within the HR industry.
  • Private Equity & Investment – The transaction involves EQT and CPP Investments, both key players in private equity and investment sectors.

Financials

  • 60 - 65% – EQT X Fund's expected investment level post-acquisition of NEOGOV.

Participants

NameRoleTypeDescription
NEOGOVTarget CompanyCompanyA provider of HR and compliance software for U.S. public sector agencies.
EQTBidding CompanybuyerCompanyA Swedish private equity firm involved in the acquisition.
CPP InvestmentsBidding CompanybuyerCompanyThe Canadian pension fund co-investing in the acquisition of NEOGOV.
Warburg PincusSelling CompanyCompanyOne of the current parents of NEOGOV, selling the company to EQT and CPP Investments.
CarlyleSelling CompanyCompanyCo-owner of NEOGOV, part of the selling parties.
Moelis & Company LLCFinancial AdvisorCompanyServed as exclusive financial advisor to NEOGOV.
Willkie Farr & GallagherLegal AdvisorCompanyServed as legal counsel to NEOGOV.
Jefferies LLCFinancial AdvisorCompanyServed as exclusive financial advisor to EQT.
Ropes & GrayLegal AdvisorCompanyProvided legal counsel to EQT.