By Milana Vinn
NEW YORK (Reuters) – The private equity owners of Granicus are preparing to explore a sale of the government-services software maker that could value it at about $4 billion, including debt, according to people familiar with the matter.
Denver-based Granicus, which is owned by Vista Equity Partners and Harvest Partners, has tapped investment banks Jefferies and William Blair to launch a sale process in the second half of the year, the sources said, requesting anonymity as the discussions are confidential.
The deliberations are at an early stage, the sources said, cautioning that the plans are yet to be finalized and the timing of the sale process could change.
Vista Equity and Harvest Partners are hoping to command a valuation for Granicus equivalent to more than 20 times its earnings before interest, taxes, depreciation, and amortization of about $175 million, the sources said.
Vista Equity declined to comment. Harvest Partners, Granicus, Jefferies, and William Blair did not immediately respond to requests for comment.
Founded in 1999, Granicus provides cloud-based software and other technology tools to federal, state, and local governments across the world to help with their efforts around efficiency and transparency. The company designs and maintains government websites, manages public records, and helps upgrade technology to make it easier for citizens to contact public officials.
Vista acquired a majority stake in Granicus in 2016, which was followed by a merger between the company and another Vista-backed software maker, GovDelivery. Harvest took a significant stake in Granicus from existing investors Vista and K1 Investment Management in 2020.
(Reporting by Milana Vinn in New York; Editing by Nick Zieminski)
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