Cox Enterprises, a global communications and automotive giant, has announced its acquisition of OpenGov, a leading government software firm, for $1.8 billion. OpenGov's enterprise resource planning software, utilized by approximately 1,900 state agencies and cities across the United States, plays a crucial role in various governmental functions, including budgeting, accounting, procurement, asset management, and permitting processes. Cox Enterprises, having been a minority investment partner in OpenGov for several years, aims to further empower the company in its mission to enhance government effectiveness and accountability. The acquisition allows OpenGov's existing management and employees to retain a significant portion of their equity, ensuring continuity in leadership under the Cox umbrella.
OpenGov's recent success is highlighted by a 76% year-over-year increase in gross new sales during the fourth quarter, driven by strategic acquisitions such as Cartegraph in 2022, specializing in cloud software for public-agency operations, and ProcureNow in 2021, offering cloud services for government procurement and contract management. The infusion of $1.8 billion from Cox Enterprises, one of the largest investments in GovTech history, is expected to accelerate product development and advance OpenGov's mission to improve communities for generations, as expressed by Zac Bookman, co-founder and CEO of OpenGov.
