Tyler Technologies’ $185 Million Acquisition of MicroPact


Sheppard Mullin advised Arlington Capital and MicroPact in the sale

Tyler Technologies Inc. (NYSE: TYL) has signed a definitive agreement to acquire MicroPact, Inc., a leading provider of specialized, vertically oriented case management and business process management (BPM) applications for government, for approximately $185 million in cash. The transaction is targeted to close on March 15, 2019, pending federal regulatory approvals.

MicroPact is a leading provider of commercial off-the-shelf (COTS) solutions, including entellitrak®, a low-code application development platform for case management and business process management. Whether based on premises or in the cloud, its Data-First™ approach allows entellitrak to be implemented immediately and configured continuously, enabling clients to get to work quickly while keeping costs low.

Founded in 1997 by CEO Kristoffer Collo, MicroPact was formerly known as MicroPact Engineering and since 2012 has operated as MicroPact through several affiliated entities. The company is based in Herndon, Va., employs 469 people, and has annual revenues of more than $70 million.

MicroPact brings an impressive roster of more than 350 top-tier public sector clients, including the Department of Justice, Department of the Treasury, Social Security Administration, and the National Aeronautics and Space Administration, and statewide agencies such as the California Department of Consumer Affairs, the Tennessee Department of Health, and the Florida Office of Regulation.

Additionally, through the extensive MicroPact Global Alliance program, Tyler will gain a partner network which includes companies such as Accenture, Amazon Web Services (AWS), Booz Allen Hamilton, CACI, General Dynamics Information Technology, and NTT Data.

MicroPact’s headquarters in Herndon, Va., as well as its other locations, are expected to remain in place after the acquisition, and no staff reductions are anticipated. Spurrier Capital Partners acted as financial advisor to MicroPact for this transaction.

Sheppard Mullin served as counsel to Arlington Capital Partners and MicroPact. The deal team was led by Washington, D.C. partners Luca Salvi (Picture) and Frank Bacelli, and included special counsel Michael Koltonyuk and Malika Levarlet, and associates Wes Fischer, Felicia Xu, Michael Baranovic, and paralegal Aaron Hill. Special assistance was provided by partners Carlo Van den Bosch, Keith Szeliga, Jonathan Meyer, Andre Cronthall, Keith Gercken, Anne Perry, Olivier Theard, Jim Ritter, and Bob Magielnicki; special counsel Verity Rees and Sean Kirby; and associates Andrew Alberg, Bryce Chadwick, Fatema Merchant, John Crisp, Katie Calogero and Heather Petrovich.

Involved fees earner: Andrew Alberg – Sheppard Mullin; Frank Bacelli – Sheppard Mullin; Michael Baranovic – Sheppard Mullin; Anne Bluth Perry – Sheppard Mullin; Katie Calogero – Sheppard Mullin; Bryce Chadwick – Sheppard Mullin; John Crisp – Sheppard Mullin; Andre Cronthall – Sheppard Mullin; James Wesley Fischer – Sheppard Mullin; Keith Gercken – Sheppard Mullin; Sean Kirby – Sheppard Mullin; Michael Koltonyuk – Sheppard Mullin; Malika Levarlet – Sheppard Mullin; Robert Magielnicki – Sheppard Mullin; Fatema Merchant – Sheppard Mullin; Jonathan Meyer – Sheppard Mullin; Heather Petrovich – Sheppard Mullin; Verity Rees – Sheppard Mullin; James Ritter – Sheppard Mullin; Lucantonio Salvi – Sheppard Mullin; Keith Szeliga – Sheppard Mullin; Olivier Theard – Sheppard Mullin; Carlo Van den Bosch – Sheppard Mullin; Felicia Xu – Sheppard Mullin;

Law Firms: Sheppard Mullin;

Clients: Arlington Capital Partners LP; MicroPact Inc.;

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Author: Ambrogio Visconti