Warburg Pincus, Carlyle to Sell Public Sector Software Firm NEOGOV to EQT and CPP Investments 

Funds managed by Warburg Pincus and Carlyle have agreed to sell NEOGOV, a leading provider of HR and compliance software for U.S. public sector agencies, to the EQT X fund and the Canada Pension Plan Investment Board (CPP Investments). Terms of the transaction were not disclosed. 

Headquartered in El Segundo, California, NEOGOV has grown into a mission-critical software provider serving nearly 10,000 public sector organizations across North America. Its cloud-native platform offers a comprehensive suite of human capital management and public safety solutions, supporting the entire employee lifecycle from recruitment and onboarding to performance and compliance management. 

“During our nine-year partnership with NEOGOV, the company has meaningfully scaled its platform, expanded its product suite, and delivered consistent top-line growth while deepening its commitment to serving public sector and education customers,” said Brian Chang, Managing Director at Warburg Pincus. 

Warburg Pincus has a long track record in technology investing, with over $36 billion deployed in tech companies including CrowdStrike, Avalara, and Modernizing Medicine. Carlyle’s Steve Bailey noted confidence in the next chapter of NEOGOV’s growth, stating: “We’re confident NEOGOV is well positioned for continued success with EQT and CPP Investments.” 

The transaction is expected to close in the coming months, pending customary regulatory approvals. Moelis & Company LLC served as exclusive financial advisor and Willkie Farr & Gallagher LLP as legal counsel to NEOGOV. Jefferies LLC advised EQT and CPP Investments, with Ropes & Gray LLP providing legal counsel.