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Key Points
- Vista Equity Partners and Harvest Partners are considering selling Granicus, a government software provider, in a deal potentially worth $4 billion.
- The company, backed by Vista Equity and Harvest Partners, generates $175 million in EBITDA and could fetch over 20 times that valuation.
- Led by Robert F. Smith, Vista Equity manages over $100 billion in assets and completed $6.5 billion in private equity investments in 2024.
Vista Equity Partners, the technology-focused investment firm led by Robert F. Smith, the second-richest Black billionaire in the U.S., and private equity firm Harvest Partners are exploring the sale of Granicus, a provider of cloud-based government software. The deal could value the company at around $4 billion, including debt, according to sources familiar with the matter.
The firms have brought in investment banks Jefferies and William Blair to oversee the sale process, which is expected to begin in the second half of the year. While discussions are still in the early stages, the owners are aiming for a valuation of more than 20 times Granicus’ $175 million in EBITDA (earnings before interest, taxes, depreciation, and amortization). If successful, the deal would rank among the most valuable in the software sector.
Government tech firm Granicus attracts investor interest
Founded in 1999 and based in Denver, Granicus provides digital solutions that help federal, state, and local governments streamline services, improve transparency, and enhance citizen engagement.
Vista Equity first acquired a majority stake in the company in 2016 and later merged it with GovDelivery, another Vista-backed firm. Harvest Partners became a significant shareholder in 2020 after acquiring a stake from Vista and K1 Investment Management.
The potential sale underscores continued investor interest in high-growth software businesses, particularly those serving the public sector. If completed, the transaction would mark a significant exit for Vista and Harvest, reinforcing the attractiveness of government technology firms in private equity portfolios.
Black billionaire’s firm expands tech portfolio
Vista Equity, led by Robert F. Smith—America’s second-richest Black billionaire with a net worth of $11.1 billion, according to Bloomberg—manages over $100 billion in assets across a portfolio of more than 85 enterprise software and data-driven companies. Since its inception, Vista has completed over 600 transactions, representing more than $320 billion in aggregate value.
In 2024, Vista deployed $6.5 billion in capital through its private equity strategy and returned $2.6 billion to investors. The firm’s portfolio companies have executed more than 30 add-on acquisitions, expanding market share and launching new products to position themselves for long-term growth.
