Information technology company Tyler Technologies Inc. (NYSE: TYL) has agreed to acquire employee-owned public sector software provider New World Systems Corp. for $670 million in cash and stock.
The financial details call for Tyler to pay $360 million in cash and issue about 2.1 million shares in common stock valued at around $310 million. Tyler is funding the cash portion of the deal with cash on hand and debt.
New World’s owns Aegis, which makes software for dispatch centers, paramedics, police officers, firefighters and other emergency personnel that helps them reduce response times. The target’s other product is Logos, which is designed to assist government and public agencies with their financial matters. New World, based in Troy, Michigan, and founded in 1981, has approximately $49 million in Ebitda and $134 million in revenue, with the majority of it coming from Aegis. Tyler makes software systems for courts that make it easier for people to access information.
“Acquiring New World Systems is a highly strategic fit and growth-oriented decision, and we plan to invest in their products and find new opportunities both in our combined client bases,” says Tyler CEO John Marr.
Deal activity in the software sector remains strong in 2015. Autodesk Inc. (Nasdaq: ADSK) is picking up Netfabb; FactSet Research Systems Inc. (NYSE, Nasdaq: FDS) is purchasing Portware LLC; Thoma Bravo LLC is buying MedeAnalytics Inc.
Wells Fargo Securities LLC (NYSE: WFC) is advising Tyler.