Warburg Pincus and Carlyle Finalize Sale of NEOGOV to EQT and CPP Investments

Major Transaction Announcement: NEOGOV Sells to EQT and CPP Investments

In a significant move within the financial and technology sectors, Warburg Pincus LLC and Carlyle Group have unveiled their definitive agreement to divest NEOGOV, a prominent software service provider for human resources and compliance solutions tailored to government agencies in the United States. The sale is directed toward EQT, a private equity firm, and Canada Pension Plan Investment Board (CPP Investments).

Founded in 2000 and headquartered in El Segundo, California, NEOGOV has emerged as a leader in providing cloud-based technology solutions to nearly 10,000 public sector organizations throughout North America. The company offers a comprehensive human capital management suite that aids agencies in managing the complete employee lifecycle, incorporating facets from recruitment and onboarding to performance evaluation and compliance management. This strategic management of human resources ensures that agencies maintain adherence to both local regulations and federal policies.

The sale announcement underscored the fruitful nine-year collaboration between Warburg Pincus and Carlyle, who have played integral roles in NEOGOV's growth journey. Brian Chang, Managing Director at Warburg Pincus, expressed pride in the significant scaling of NEOGOV’s operations during this partnership. He stated, “We are excited about NEOGOV's innovations and the consistent growth it has achieved while broadening its offerings to better serve the public sector.”

Vishnu Menon, another Managing Director at Warburg Pincus, echoed this sentiment, assuring stakeholders of NEOGOV's preparedness for an expansion under the guidance of EQT and CPP Investments.

Similarly, Carlyle’s representative, Steve Bailey, remarked, “It has been a privilege to collaborate with NEOGOV during this remarkable phase of growth and innovation. The leadership team, under Shane Evangelist, has developed a platform critical for enhancing the effectiveness of public sector agencies in serving their communities.” This collaboration has fostered advancements that actively contribute to the community's well-being.

Shane Evangelist, current CEO of NEOGOV, also shared gratitude towards Warburg Pincus and Carlyle for their relentless support, attributing their combined influence as pivotal to the expansion and impact of the company. He affirmed the readiness of NEOGOV for further success amidst the new ownership.

The completion of the transaction is anticipated in the coming months, pending customary regulatory approvals and conditions. The financial advisory role for NEOGOV throughout this process was managed by Moelis & Company, while legal counsel was provided by Willkie Farr & Gallagher LLP. In parallel, Jefferies LLC acted as the exclusive financial advisor for EQT and CPP Investments with legal counsel from Ropes & Gray.

Warburg Pincus has established its reputation as a primary force in growth investing, particularly within technology sectors. The firm has allocated more than $36 billion to various tech initiatives since its inception. Additionally, Carlyle Group is notable for its vast portfolio stretching across various investments worldwide, managing an impressive $453 billion in assets as of the end of March 2025. With such robust credentials, NEOGOV is poised to continue its mission of innovating HR solutions in public service sectors under its new partners.

Motivated by a vision of effective governance and improved public service through technology, this transaction marks a pivotal moment for NEOGOV, potentially leading to continued growth and enhanced service frameworks benefiting more governmental and educational institutions across North America.

For more information about NEOGOV, visit their official site NEOGOV.