Netcall has acquired Govtech Solutions in a move aimed at improving services and achieving cost savings for local government.
Govtech Solutions, a process automation technology partner to UK local authorities, has been acquired by AI-powered automation and customer experience software provider Netcall PLC — in a transaction advised by CapEQ.
With the acquisition of Govtech Solutions, Netcall extends its presence in the local government sector, enhancing its Liberty portfolio with innovative digital solutions. Govtech Solutions’ expertise and revenues and benefits automation technology will support Netcall’s capabilities, enabling the delivery of solutions that streamline operations and improve citizen experiences.
Govtech Solutions’ platform handles approximately 30 million transactions annually, achieving up to 80% automation for around 50 local authorities. This results in productivity savings with up to 50% increased efficiency in Revenues and Benefits teams, better citizen service and faster service delivery.
Netcall plans to integrate Govtech Solutions’ technology into its Liberty platform, alongside its existing automation capabilities, such as AI-enhanced citizen experience technology, chatbots, robotic process automation, and rapid application development. This integration will combine the strengths of Govtech Solutions and Netcall to streamline income collection processes across Revenues and Benefits, Housing, and Social Care.
James Ormondroyd, Chief Executive of Netcall, commented: “The acquisition of Govtech significantly expands our presence in the local government sector, strengthening our product proposition and providing substantial new cross selling opportunities, while adding to our growing base of recurring revenues. We look forward to welcoming the Govtech team to Netcall and are confident in the Group’s continued success.”
Govtech Solutions was advised by CapEQ (M&A) and Freeths (legal). Netcall PLC announced total consideration of up to £13.0m on 7 August 2024: an initial cash consideration of £9.6m and an earnout of up to £3.4m.
Douglas Edmunds is a Partner at CapEQ, the Certified B Corporation mid-market M&A advisory. He has led transactions across technology, healthcare, industrials, and financial services sectors over a 15-year M&A career.CapEQ Partner Douglas Edmunds commented: “Local authorities are under acute financial pressure, and welfare recipients increasingly want streamlined claims processing and faster payments.
“This acquisition aims to help with those challenges by accelerating innovation in council process automation, and we are grateful to have helped bring the two firms together. We look forward to watching the new business combination develop automated council services for those citizens who need help most.”