Blackstone announces $2.5bn acquisition of software firm

Asset manager Blackstone has announced it has acquired Civica, a UK public sector software firm in a deal reported to be worth $2.5bn.

Civica has been picked up from Partners Group, a global private markets firm acting on behalf of its client.

The public sector software solutions provider performs automating and streamlining technology services to clients that range from local to central and federal government, health and social care providers and education.

With offices in Dudley, Altrincham, Bristol and Leeds, its product portfolio includes workflow and automation, risk and compliance, workforce management, financial management, and data analytics and insights.

Civica has more than 6,000 customers, servicing 100 million citizens across the UK, Ireland, Australia, New Zealand, India, Singapore, the United States and Canada.

The transaction is expected to close in Q2 2024, subject to regulatory approvals.

Financial terms of the transaction were not disclosed by Blackstone.

Jonathan Murphy, a managing director at Blackstone said:  “Civica is a leader in the ‘GovTech’ space, with an excellent brand and an enviable market position and we are excited to be partnering with a stellar management team to help the business in this next phase of growth.  This investment is a testament to our long-standing software experience, a significant focus area for the firm globally, and builds on our strong track record of investing here in the UK.”

Lee Perkins, chief executive officer at Civica said: “At Civica, we aspire to be a ‘GovTech’ champion, providing software that supports the needs of citizens and those that serve them. In partnership with Partners Group, we have significantly transformed our offering and increased growth momentum across cloud, digital enablement, software innovation, and data analytics. We have also cemented our position as an innovation leader. We now have over two decades of growth to build on and look forward to the next phase of our journey.”

Blackstone was advised by Barclays as the lead financial advisor and DC Advisory as a secondary financial advisor.

Partners Group was advised by Clifford Chance and Arma Partners. Arma Partners acted as exclusive financial advisor to Civica and Management was advised by Travers Smith and Wyvern Partners.