Chicago Startup CityBase To Be Acquired By GTY Technology Holdings Inc.
Once voted the sexiest startup (in public sector technology), CityBase gets hitched
Sept. 12, 2018 (CHICAGO) — GTY Technology Holdings Inc., a special purpose acquisition company created by former top Accenture and EMC executives, has agreed to buy CityBase, Inc. for $160 million in cash and stock, the company announced today.
GTY (NASDAQ: GTYHU/GTYH/GTYHW) raised more than $550 million in November 2016 to identify and invest in compelling and emerging trends within the technology sector. This effort was led by former Accenture Chairman and CEO William D. Green; former EMC Chairman and CEO Joseph M. Tucci; and former EMC executive vice president Harry L. You.
CityBase will operate as a wholly owned business unit of GTY, continuing to grow and invest in its clients, products and mission to transform how people experience government. The new entity will include six like-minded companies, all of which serve the public sector.
“The small but passionate govtech industry has been distinguishing itself since 2012 by creating tools that advance the goals of civil servants to modernize the public-sector experience,” CityBase founder and CEO Michael Duffy said. “This milestone is a validation of our peers’ and clients’ collective work to date and of the tremendous opportunity in front of us all.”
Stephen Rohleder, a GTY director, and former Accenture chief operating officer and CEO of its health and public service group, will be chairman and CEO of GTY. You will continue to serve as chief financial officer of the new entity.
Duffy said GTY’s “highly experienced, impressive team with a track record of scaling businesses” was a key factor in CityBase’s decision to pursue the transaction.
“It was certainly not our plan to go public, or even be acquired,” Duffy said. “But we quickly recognized this opportunity to become a public company as a distinct alternative to venture capital that better matched the long time horizon and public accountability of our clients.”
Duffy launched and grew CityBase with funding from Jeff Taylor, the former CEO and chairman of Cole Taylor Bank, and later expanded with funding led by Chicago’s Method Capital.
CityBase helps local governments and utilities digitize manual and fragmented payment and administrative processes. Its digital services and payments platform is available online and through in-person channels, such as kiosks, offering 24-7 access to every person and business.
The deal is expected to close early next year.
For full details on transaction considerations, please view the encompassing GTY Schedule 8-K, which will be made available on www.sec.gov/edgar.
M. Harris & Co.
CityBase gives people and businesses an intuitive way to interact with utilities and government agencies. CityBase’s technology dramatically improves constituent services through payment solutions, digital services and API development for cities, counties, states and utilities. For more information please visit thecitybase.com.