Tyler to buy payments firm NIC for $2.3 billion as pandemic speeds online payment shift
Tyler Technologies announced Wednesday it will buy Olathe, Kansas-based payments company NIC Inc for about $2.3 billion, as the COVID-19 pandemic has accelerated a shift to online services and electronic payments by governments.
Founded in 1992 by Jeff Fraser, NIC is a digital government solutions and payments company, serving more than 7,000 federal, state, and local government agencies. As COVID-19 rages, NIC helps government agencies rapidly deliver digital solutions to provide essential services to citizens and businesses alike.
Tyler is a provider of emergency management and other software programs to U.S. counties and municipalities, while NIC provides digital services that help citizens make secure payments to the government, renew licenses and submit business filings.
In a news release, Tyler Chief Executive Lynn Moore said, “The pandemic has accelerated the shift by governments to online services and electronic payments as more citizens and businesses are interacting digitally with government. NIC is uniquely positioned with its deep expertise and robust digital solutions to partner with us in making government more efficient and more accessible to citizens.”
Moore added, “Our companies share a vision for thriving, connected communities, and our cultures are extremely compatible. The combination will provide extensive benefits for the clients, employees, and shareholders of both companies.”
Tyler said it plans to fund the deal with about $700 million of cash and new debt. The deal is expected to add to Tyler’s adjusted earnings in 2021.
The transaction is expected to close in the second quarter of 2021. Both companies also reported earnings for the fourth quarter and full-year 2020 on Wednesday.
Founded in 1966, Tyler Technologies is a Plano, Texas-based software company that provides integrated software and technology services. Tyler is the largest provider of software to the United States public sector. Tyler Technologies has offices in 17 states and one in Toronto, Ontario.