firm insight 290m manhattanmercury
A Manhattan software business owner says a multimillion-dollar investment into the company will not change the company’s makeup.
CivicPlus, which provides cloud-based software for local governments, has announced a $290 million investment from private equity firm Insight Partners, CivicPlus owner Ward Morgan told The Mercury on Friday.
Morgan said he and his wife, Brenda, are “a little bit sad in a sense” that they are no longer majority owners of the business, but he said he is excited for what this partnership will mean for the CivicPlus staff and the community.
Morgan said CivicPlus had an outside investor, BB Investments, as a minority partner for the past two years. BB Investments brought expertise and capital to help the company grow. Morgan said he was recently approached by some private equity firms who wanted to buy out BB Investments.
“We worked with five of them to find out if it was a good fit or not,” Morgan said. “In that, Insight rose to the top.”
Morgan said Insight Partners has experience investing in software companies, and he decided to work out a deal with them. Insight Partners bought out BB Investments and became majority investors in CivicPlus.
“I would say almost weekly I’ve been approached by companies that want to invest in us,” Morgan said. “But Insight is really the one we thought understood our mission of helping local governments be better.”
Morgan said the consultants at Insight “have bought into” the goals and mission of CivicPlus. He said his software company was facilitating acquisitions previously, but Insight “has a bigger checkbook” to help with bigger acquisitions if needed. He said the partnership will also bring experts in fields such as marketing, software development, human relations, and finance into the company’s tool box.
“It’s just like how you would maybe pay a major consulting company to come in and help make your company better and help it grow,” Morgan said. “They aren’t coming in and mandating anything, they’re just there to be a partner.”