EQT and CPP Investments Join Forces to Buy NEOGOV, Advancing HR Software for Public Sector

Strategic Acquisition of NEOGOV by EQT and CPP Investments

In a pivotal move within the realm of public sector software solutions, EQT X fund and the Canada Pension Plan Investment Board (CPP Investments) have agreed to acquire NEOGOV from Warburg Pincus and Carlyle. This transaction, announced on July 28, 2025, holds significant implications for the enhancement of HR and compliance software solutions tailored for U.S. public sector agencies.

Founded in 2000 and headquartered in El Segundo, California, NEOGOV has carved a niche for itself, providing specialized HR and public safety solutions to over 10,000 public sector organizations throughout North America. NEOGOV’s cloud-native suite supports a comprehensive employee lifecycle – encompassing recruitment, onboarding, performance management, and compliance management. These tools are crucial for public agencies as they strive to meet stringent local policies and regulatory requirements.

CEO Shane Evangelist expressed the excitement surrounding this acquisition: "Local governments are the backbone of our communities. Our mission is to help them operate more efficiently and serve citizens more effectively. EQT and CPP Investments share our vision and bring the experience and capital to help us scale faster."

The acquisition not only intends to amplify NEOGOV’s operational capacity but also aims to enhance product innovation and integrate advanced AI capabilities to further boost efficiency in public sector operations. According to Evangelist, aligning with EQT and CPP Investments will be vital in accelerating growth and helping NEOGOV bolster its existing customer relationships while attracting new clientele.

EQT's Partner and Co-Head of Global Technology, Arvindh Kumar, highlighted the esteemed position of NEOGOV in the public sector: "We are excited to partner with Shane and the NEOGOV team, who are operators at the highest levels. The team brings a deep understanding of the challenges that public sector agencies face, and we're proud to support a company that has earned such trust in the public sector."

With this acquisition, NEOGOV’s potential for smooth expansion can be realized, further underscored by Tyler Parker, Managing Director in EQT’s Private Equity advisory team. He noted the commitment to modernizing public sector operations and delivering impactful technologies aimed at enhancing civic service efficiency.

The integration of NEOGOV into EQT's portfolio is viewed as a strategic fit that aligns with both organizations' commitment to investing in high-quality software companies. Sam Blaichman, Managing Director at CPP Investments, underscored the perfect alignment with NEOGOV’s offerings, citing increasing demand across North America for their services as a key driver for this acquisition.

As the deal progresses, it is expected that EQT X will be 60–65% invested, which includes several ongoing funding initiatives. The completion of the acquisition is pending customary conditions and approvals, which are anticipated to be finalized in the upcoming months.

In a notable move, EQT has engaged Moelis & Company LLC as its exclusive financial advisor, with legal counsel being provided by Willkie Farr & Gallagher for NEOGOV, while Jefferies LLC is serving as the exclusive financial advisor to EQT, with Ropes & Gray as their legal advisor.

As NEOGOV embarks on this new journey under the aegis of EQT and CPP Investments, the focus will undoubtedly remain on enhancing public sector efficiency, thereby marking a significant milestone in the evolution of software solutions aimed at aiding government agencies across the U.S. and beyond.