EQT to acquire HR software firm Neogov in $3B deal from Warburg Pincus and Carlyle

Just weeks after private equity firm Warburg Pincus sold its stake in cybersecurity startup A-lign, it’s offloading another portfolio company—this time in the HR software space.

Private equity firm EQT has agreed to acquire Neogov, a California-based provider of workforce management software for public sector employers, in a deal that values the company at over $3 billion, including debt, Reuters reported, citing three people familiar with the matter. The deal marks a full exit for both Warburg Pincus and Carlyle, which together own the majority of Neogov.

Warburg Pincus first backed Neogov in 2016. Carlyle came in later, buying a minority stake in 2021. With the EQT sale, both firms will cash out entirely. A formal announcement is expected in the coming days.

Founded in 2000 and based in El Segundo, Neogov sells software to government agencies, helping them handle recruiting, onboarding, and employee management. It’s not a flashy category, but public sector HR remains a sticky and highly specialized market—one that Neogov has spent more than two decades quietly serving.

None of the parties involved had much to say publicly. Neogov didn’t respond to a request for comment, and both Warburg Pincus and Carlyle declined to comment.

Private equity activity has picked up in recent weeks after a sluggish second quarter. Dealmakers have been more cautious lately, weighing shifting macro conditions and a tighter funding environment. Still, the Neogov deal is another sign that buyers are willing to spend for proven, recurring-revenue businesses—especially in areas where software still hasn’t fully eaten the market.

For EQT, this is another addition to its growing portfolio of enterprise software investments. For Warburg and Carlyle, it’s a clean exit from a long-term bet that paid off.