EQT has struck a deal to acquire Neogov, a US-based human resources software provider, in a transaction that values the company at more than $3bn including debt, according to a report Reuters citing unnamed sources familiar with the matter.
The transaction marks a full exit for Neogov’s current private equity backers, with Warburg Pincus selling its majority stake and Carlyle divesting its roughly one-third ownership. A formal announcement is expected within days, the sources said on condition of anonymity due to the private nature of the deal.
Founded in 2000 and headquartered in El Segundo, California, Neogov provides cloud-based HR software tailored to the public sector, enabling government agencies and public institutions to manage talent acquisition, employee performance, and other workforce functions.
Warburg Pincus first invested in Neogov in 2016, followed by Carlyle’s minority investment in 2021. The exit comes amid renewed momentum in the private equity deal market, after a quiet second quarter marked by macroeconomic uncertainty and geopolitical tensions.
For EQT, the acquisition aligns with its strategy of backing high-growth, mission-critical software providers with sticky, recurring revenues. Neogov’s focus on the public sector – where demand for digital transformation remains strong – adds defensive characteristics to EQT’s software portfolio.
The transaction also represents Warburg Pincus’ second significant software exit in July, following its sale of cybersecurity platform A-lign to Hg.
