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Tyler Technologies To Acquire NIC For About $2.3 Bln - Quick Facts

Tyler Technologies Inc. (TYL), a provider of integrated software and technology services to the public sector, has agreed to acquire all outstanding shares of NIC Inc. (EGOV) in an all-cash transaction valued at about $2.3 billion, the two companies said Wednesday.

Olathe, Kansas-based NIC is a digital government solutions and payments company, serving more than 7,100 federal, state, and local government agencies across the nation. The transaction is expected to close in the second quarter of 2021.

Under the terms of the deal that was unanimously approved by the boards of directors of both companies, NIC stockholders will receive $34.00 per share in cash, which represents a 14 percent premium to the NIC closing share price and 52-week closing high of $29.81 on February 9, 2021.

In fiscal year 2020, NIC delivered revenues of $460.5 million and net income of $68.6 million.

"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," said Lynn Moore, Tyler's president and chief executive officer.

Tyler noted that its strength in local government and NIC's strength in state government are highly complementary. Together, the combined company expects to significantly expand its business with federal agencies and leverage Tyler's sales channels as well as client base to enhance NIC's scale and accelerate its strategy of bringing vertical applications to clients.

Tyler said it plans to fund the transaction with a combination of about $700 million of cash on its balance sheet and new debt.

Tyler expects the combination to be accretive to its adjusted earnings and EBITDA, as well as recurring revenue mix and free cash flow per share, in 2021.

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