CityBase helps local governments and utilities digitise manual payment and administrative processes
GTY Technology Holdings, a special purpose acquisition company, has agreed to buy public sector technology start-up CityBase for $160m in cash and stock.
GTY raised more than $550m in November 2016 to identify and invest in compelling and emerging trends in the technology sector. The effort was led by: William Green, former chairman and CEO of Accenture; Joseph Tucci, former chairman and CEO, EMC; Harry You, former executive vice president, EMC.
“The small but passionate govtech industry has been distinguishing itself since 2012 by creating tools that advance the goals of civil servants to modernise the public-sector experience,” said Michael Duffy, founder and CEO, CityBase.
“This milestone is a validation of our peers’ and clients’ collective work to date and of the tremendous opportunity in front of us all.”
CityBase will operate as a wholly owned business unit of GTY, continuing to grow and invest in its clients, products and mission to transform how people experience government. The new entity will include six like-minded companies, all of which serve the public sector.
"The small but passionate govtech industry has been distinguishing itself since 2012 by creating tools that advance the goals of civil servants to modernise the public-sector experience"
Stephen Rohleder, a GTY director, and former Accenture chief operating officer and CEO of its health and public service group, will be chairman and CEO of GTY. Harry You will continue to serve as chief financial officer of the new entity.
Duffy launched and grew CityBase with funding from Jeff Taylor, the former CEO and chairman of Cole Taylor Bank, and later expanded with funding led by Chicago’s Method Capital.
CityBase helps local governments and utilities digitise manual and fragmented payment and administrative processes. Its digital services and payments platform is available online and at kiosks, offering 24-7 access to every person and business.
“It was certainly not our plan to go public, or even be acquired,” added Duffy. “But we quickly recognised this opportunity to become a public company as a distinct alternative to venture capital that better matched the long-time horizon and public accountability of our clients.”
The deal is expected to close early next year.
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