Capital infusion to fuel Accela's growth building on its strong fiscal year 2023 performance
SAN RAMON, Calif., Sept. 6, 2023 /PRNewswire/ -- Accela, the trusted provider of cloud solutions at the heart of government, today announced a strategic growth investment from Francisco Partners, a leading global investment firm that specializes in partnering with technology businesses. Berkshire Partners will remain a significant investor with an equal equity holding in Accela. Financial terms of the transaction were not disclosed.
"Today's announcement marks another notable milestone for Accela as we aim to advance the govtech industry. This new funding and partnership with Francisco Partners kick-starts our next chapter that's focused on elevating and expanding how we serve state and local governments," said Gary Kovacs, CEO of Accela. "Francisco Partners' world-class technology expertise will parlay into investments designed to further simplify and streamline the government experience, and we are pleased to have the continued strong support of Berkshire Partners as we execute our growth strategy. Our mission remains the same: to be the heart of government, vital to the expansion of innovative, growing, and safe communities."
Serving more than 300 million citizens worldwide and delivering strong 2023 fiscal year momentum, Accela offers agencies a unified suite of cloud solutions and a single cloud-based platform to accelerate government modernization, deliver critical services, and build stronger communities. Accela's Civic Platform powers major state and local governments, streamlining the internal and residential government experience for Dallas, Texas; Seattle, Washington; the State of California; Abu Dhabi; cities and counties across Florida; and more.
"Accela has been a foundational leader in the govtech space for decades and has demonstrated impressive double-digit growth quarter over quarter—a reflection of their strong brand reputation, competitive differentiation and unbreakable customer relationships," said Andrew Kowal, partner at Francisco Partners. "Accela's combination of low-code cloud-based solutions on a single robust platform is transforming the digital government experience. We've been impressed with Accela's industry impact for some time, and we look forward to helping them provide even more value to their government customers," added Jason Brein, partner at Francisco Partners.
"Since our partnership began in 2017, we've seen significant growth in Accela's ability to serve local and state agencies with increasingly essential government technology solutions," said EJ Whelan, managing director at Berkshire Partners. "Accela's outstanding leadership team continues to advance this industry-leading technology that helps governments better serve residents and businesses in their communities," added Jon Nuger, managing director at Berkshire Partners. "We welcome Francisco Partners to the team and look forward to collaborating to support Accela's growth within the rapidly advancing govtech industry."
The government technology industry has seen record growth in the past year with the global cloud market for government expected to reach $49.2 billion by the end of 2023. As communities tackle staffing shortages and new challenges such as adapting infrastructure for extreme weather, digital solutions allow local and state governments to break down agency siloes to streamline critical constituent services—such as permitting, licensing, code enforcement and more. High-quality digital services, in turn, lead to more satisfied constituents and more resilient communities.
Accela provides a unified suite of cloud solutions trusted by governments across the globe to accelerate their digital transformation, deliver vital services, and build stronger communities. More than 300 million citizens worldwide benefit from Accela's government software solutions. The company offers agile, purpose-built solutions and the power of a platform that provides users with a consumer-like experience, shares data across departments, and ensures world-class security. The company is a four-consecutive year Microsoft US Partner Award winner, a recipient of Inc.'s Best in Business for SaaS award, and was selected by Fast Company for its World Changing Ideas Award in 2022. For more information, visit www.accela.com.
About Francisco Partners
Francisco Partners is a leading global investment firm that specializes in partnering with technology and technology-enabled businesses. Since its launch over 20 years ago, Francisco Partners has invested in more than 400 technology companies, making it one of the most active and longstanding investors in the technology industry. With approximately $45 billion in capital raised to date, the firm invests in opportunities where its deep sectoral knowledge and operational expertise can help companies realize their full potential. For more information on Francisco Partners, please visit www.franciscopartners.com.
About Berkshire Partners
Berkshire Partners is a 100% employee-owned, multi-sector specialist investor in private and public equity. The firm's private equity team invests in well-positioned, growing companies across technology & communications, consumer, healthcare, and services & industrials. Since inception, Berkshire Partners has made more than 150 private equity investments and has a strong history of collaborating with management teams to grow the companies in which it invests. The firm's public equity group, Stockbridge, founded in 2007, manages a concentrated portfolio seeking attractive long-term investments. The firm's Stockbridge and Private Equity teams frequently collaborate and leverage their collective industry expertise across sectors. For additional information, visit www.berkshirepartners.com.
Accela: Courtney Bonness, [email protected]
Berkshire Partners: Greg Winter, [email protected]
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