Why GI Partners Is Buying GTY Technology (GTYH)

By Amit Chowdhry ● Apr 29, 2022
  • GI Partners is buying GTY Technology Holdings Inc. (NASDAQ: GTYH). This is why.

GTY Technology Holdings Inc. (NASDAQ: GTYH), a leading provider of cloud software solutions for the public sector, announced it has entered into a definitive agreement to be acquired by GI Partners, a leading private investment firm. Upon the completion of the transaction, GTY will become a privately held company.

Under the terms of the agreement, GTY shareholders are going to receive upon consummation of the transaction $6.30 in cash for each share of GTY common stock that they hold. And the purchase price provides substantial value to GTY’s existing shareholders and represents a 123% premium over the closing share price on April 28, 2022, the last full trading day prior to the transaction announcement, and a 57% premium over the 90-day volume-weighted average closing share price through April 28, 2022.

This investment from GI Partners will support GTY’s strong momentum in the public sector technology market as the company increases investments in sales, marketing and technology innovation to accelerate growth.

GTY’s Board of Directors had unanimously approved the transaction and recommended that GTY’s shareholders vote in favor of the transaction at the special meeting of GTY shareholders to be called in connection with the transaction.

GTY shareholders will receive $6.30 per share in cash upon the closing. And the deal is currently expected to close in the third quarter of 2022 following receipt of applicable regulatory approvals and the satisfaction of other customary closing conditions, including approval by GTY’s shareholders.

KEY QUOTES:

“GI Partners has an excellent track record of supporting and adding value to leading software companies, and we are delighted to bring on a partner of GI Partners’ caliber. This transaction will provide immediate and substantial value to GTY shareholders. The Company will have greater flexibility to focus on executing our strategy, and we are excited to begin our long-term partnership with GI Partners.”

— TJ Parass, CEO of GTY

“We at GI believe GTY has developed outstanding products across its segments and a well-earned reputation for quality and innovation. We are impressed by the team’s commitment to solve some of governments’ most pressing problems.”

— Travis Pearson, Managing Director and Co-Head of Private Equity at GI Partners

“We see opportunities for GTY to continue to accelerate organic growth through a number of exciting initiatives where GI has deep experience. We look forward to working with management to continue innovating and delivering value to its customers.”

— Sendil Rajendran, Managing Director at GI Partners